SolidarityEconomy.net

by Jerry Harris, SolidarityEconomy.net

. IMF admits workers income is shrinking

The IMF has stated globalization is driving down the share of national income going to workers. The world labor force increased 400% over the past 20 years with China, India and eastern Europe integrating into the global economy. This has rapidly increased the number of educated workers which the IMF says has the biggest impact in the industrial countries, negatively effecting skilled workers. The IMF contends technology has a bigger impact on the unskilled and is responsible for the growing lack of income among workers in this sector. The IMF’s blame on technology sidesteps the question of who controls technology. Blaming “technology,” rather than how the capitalist class organizes its use, makes lower wages and more unemployment seem like a force of nature or the market. The IMF still defends globalization as increasing the overall pie, stating workers are doing better, they just have less of more.

. China ends foreign tax breaks

China’s National People’s Congress ended nearly 30 years of favorable treatment for foreign companies with legislation to equalize tax rates paid by local and overseas corporations. The tax rate will be set at 25 percent where in the past local companies paid 33 percent and foreign enterprises paid only 15. Since 1980, 594,000 foreign enterprises have come to China investing a total of $691.9B. Meanwhile in 2006, 97,260 Communist Party members were disciplined for bribes, gambling with public money, abusing land rights and other corruption charges.

. British Virgin Islands corporate population

The Cayman Islands and British Virgin Islands both operate as offshore tax shelters for international corporations. BVI’s population is only 26,000 but currently it is the home of 750,000 corporate headquarters. The rich continue to avoid paying for the physical and financial infrastructure that makes business possible and no national government has made this activity illegal.

. European Financial Markets surpass US

For the first time Europe’s 24 stock markets, including Russia, saw their capitalization surpass the market value of the US. Europe’s value reached $15,720B just slightly more than the US who comes in at $15,640B. European shares have outperformed the US, their market capitalization rising 160 percent compared to 70.5 for US stock markets since 2003. Just one more sign that the US is losing its economic hegemony.