Why making American corporations more competitive doesn't help most Americans
By way of comparison, the combined tax cuts for families in the bottom 80 percent of the income distribution in the 30 states won by President Donald Trump comes to just $39.4 billion. That's far less than the House bill gives away to foreign investors.
I'm not blaming American corporations. They're in business to make profits and maximize their share prices, not to serve America.
I'm blaming politicians like Trump and the Republicans who are trying to persuade Americans that tax cuts on American corporations will be good for Americans.
It's different for many corporations headquartered in Europe or Canada. Big corporations headquartered there are far more responsible for the well-being of the people living in those nations. That's mainly because labor unions there are typically stronger there than they are here -- able to exert pressure both at the company level and nationally.
As a result, American corporations distribute a smaller share of their earnings to their workers than do European or Canadian-based corporations. And top American executives make far more money than their counterparts in other wealthy countries.
Governments in other rich nations often devise laws through bargains involving big corporations and organized labor. This process further binds their corporations to their nations.
But in America, lawmakers respond almost exclusively to the demands of big corporations and of wealthy individuals (typically corporate executives and Wall Street moguls) with the most lobbying prowess and the deepest pockets to bankroll campaigns. Meanwhile, unions are weak here, and "the preferences of the average American appear to have only a miniscule, near-zero, statistically non-significant impact upon public policy," according to researchers Martin Gilens and Benjamin Page.
Which is one reason most Europeans and Canadians receive essentially free health care, generous unemployment benefits, paid medical leave and an average of five weeks paid vacation.
So it shouldn't be surprising that even though U.S. economy is doing well by most measures, and American-based corporations are overflowing with profits, the benefits are not trickling down to most Americans.
Given the dominance of American corporations in American politics, combined with their singular concern for share prices rather than the well-being of Americans, it's folly to think they'll turn tax cuts into good American jobs.
The tax bills big corporations are pushing through Congress are designed for one thing: to boost their share prices, not to boost the vast majority of Americans.
(Robert Reich, a former U.S. Secretary of Labor, is professor of public policy at the University of California at Berkeley and the author of "Saving Capitalism: For the Many, Not the Few," now available in paperback. His film "Inequality for All" is available on Amazon, DVD and On Demand, and his documentary "Saving Capitalism" is now on Netflix. His daily blog is at www.facebook.com/RBReich/.)