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Originally Posted by scottw
those middle classes are "growing" because US large corps are shifting there and investing because the business climate is better and "cheaper", not simply because the customer is there and our corporations are chasing them as Spence stated...
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You're ignoring the mega trends that are driving this behavior.
The middle class in China didn't rise simply because US companies were looking for cheap labor. Perhaps the USA's most successful export has been the American Dream. People in countries like China have determined they deserve better, are educating themselves and their Government has changed it's behavior to help enable this change. The influx of US jobs is certainly a factor, but before that you have a craving for cheaply made stuff that started the ball rolling in the first place.
It's a hell of a lot more complicated than just Obama and the corporate tax rate.
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we(US corps) are creating and have been creating the growing middle class overseas through investment with jobs that are better paying than what would otherwise be there...it's just a better option for these corps but they are focusing there for many of the same reasons that small business here is lagging in job creation...and that is a crappy business climate here
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Don't discount how hungry the young professional class in these emerging nations are to educate themselves and be successful. We're seeing more of this now in North Africa, Iran and likely in more countries who have lived for the past 1/2 century behind closed doors.
Corporations have to manage their assets and resources against variable risks to deliver shareholder value. I'm sure every exec would love to have a low and stable corporate tax rate. But that doesn't mean they're going to turn that benefit into US jobs or value to the US consumer. In a very competitive GLOBAL marketplace they're going to continue to look for any advantage to capture market share...and as SM36 mentioned, the high growth opportunities are for the most part not in the US today.
If we're smart, educate our kids and keep the innovative spirit of America going...we'll be fine in the long run...but we may not dominate like some feel we're entitled to.
-spence