2004 Year in Review

American Workers are our best investments

(WASHINGTON) House Small Business Committee Chairman Don Manzullo (R-IL) today said the long-range viability of America's small businesses and their workers have been put at risk by CEOs who measure their success by the closing price of their company's stock.

Manzullo, who chaired a committee hearing this morning exploring the rabid offshoring practices of America's CEOs, said corporate America's obsession with quarterly profits is one of the leading reasons why our economy is experiencing a jobless recovery. CEOs are sending jobs overseas in droves, exploiting the cheap labor for short-term stock gains. These large corporations are also pulling work from their smaller American subcontractors and seeking cheaper offshore suppliers.

"I think if we peel back the onion we will find that companies are unduly forced into doing whatever it takes to drive up stock values in order to make their quarterly estimates. The decision to manage a company by managing stock price has monstrous effects on everyday America," Manzullo said. "By looking long-term, I believe companies can put America's jobs first and still win in the global marketplace."

During Wednesday's hearing, business consultants and academics testified that the long-range value of a company improves the more the company invests in its workers instead of relying on cheap labor. One study, shared by Princeton-educated economist Dr. Laurie Bassi, showed that companies which made significant investments in their employees consistently reaped greater long-term stock performance than those who sought short-term profitability.

Manzullo said the ramifications of the offshoring craze should be obvious.

"If America's corporations continue to send all of our jobs overseas, no one will be left in this country who can afford to buy anything," Manzullo said.

by  Editor, theCity1.com
January 22, 2004