Monday, July 04, 2005

Happy 4th

"The care of human life and happiness and not their destruction is the first and only legitimate object of good government."

-- Thomas Jefferson

82 Comments:

At 5:51 PM, Blogger Camille Roy said...

I am struck by the irony of taking this day to celebrate our democracy when we have sold our government to special interests. See 'Selling Washington' by Elizabeth Drew if you think I exaggerate (http://www.nybooks.com/articles/18075). And who are those special interests? By and large we are talking about corporations, who have a peculiar citizen-like legal status, but are *not* citizens. As citizens, we have sold our country to non-citizens, the multi-national corporations. And what do they do with the spoils they have wheedled from us? They ship our jobs, overseas, 'natch. A grim and grotesque prospect.
For more info on that particular debacle, see "Profits, Not Jobs, on the Rebound in Silicon Valley":
http://www.nytimes.com/2005/07/03/business/03valley.html?adxnnl=1&adxnnlx=1120413884-eYYx5BhwqQY006nVc6Epag


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"In the last three years, profits at the seven largest companies in Silicon Valley by market value have increased by an average of more than 500 percent while Santa Clara County employment has declined to 767,600, from 787,200. During the previous economic recovery, between 1995 and 1997, the county, which is the heart of Silicon Valley, added more than 82,800 jobs.
....
The issue is not just outsourcing, though, but also big leaps in productivity. Cisco, the behemoth maker of Internet equipment, now has annual sales of $680,000 per employee, compared to $480,000 in 2001.

One key measure, known as value added per employee, rose 3.7 percent in 2004, to $222,000 in economic value per worker. That compares with $85,000 per worker in the rest of the country, according to data reported by Joint Venture Silicon Valley, a regional economic research group.

By a number of other measures, companies are watching profits and sales rise. An analysis published in April by The San Jose Mercury News found that the top 100 public companies in the region had revenues of $336 billion in 2004, an increase of 14 percent from the previous year.

Mr. Henton said that measure, while not entirely indicative of what is going on because it includes worldwide sales, gives a good sense of the growth here.

"It's a clear recovery," Mr. Levy said. "It's a high-productivity jobless recovery."

In the past, much of the job growth has come from investment by venture capitalists in start-up companies. That engine is starting to rev up again, with venture capitalists putting $7.4 billion into 724 Silicon Valley companies in 2004, according to the National Venture Capital Association.

That is up 17 percent from 2003, but still far below the $34 billion invested in 2000, at the peak of the phenomenon.

Also, newer start-ups are under pressure from their venture-capital investors to outsource work to lower-cost regions..."

 
At 8:35 AM, Blogger calmo said...

mighty post camille.
Corporations have been around for awhile. Even multinational ones. But this new beast that has emerged milking 3rd world labor (mostly Chinese and Indian) under the banner of 'globalization' is new.
The military adventures offer some distraction from this economic reality that is showing up in our deficits. Those costs are not on the books and like the human costs, get little attention from the press.
We *are* a long way from Jefferson.

 
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