Last year, AT&T got a $3 billion dollar tax break from the GOP’s “Tax Cuts and Jobs Act” giveaway to the rich.
During its push for the tax cut, the telecommunications giant promised it would create thousands of new middle class jobs. One thing they left out: not for Americans.
An excellent investigation conducted by Axios revealed that since the law passed, AT&T has teamed up with Indian outsourcing firms to replace thousands of its employees with H-1Bs. To add insult to injury, 90% of these laid off workers are being forced to personally train their replacements.
Insight into this decision making process can be seen by a public list of demands from the Jew Paul Singer’s hedge fund, Elliot Management, from last October. In it, Singer’s Jewish speculation network, which owns a large stake in AT&T, orders the company to use its big profits to boost stock buybacks, expand its corporate board, and “enhance operational efficiency” – code for laying workers off and replacing them with white collar immigrants. The GOP tax cut bill has further encouraged other forms of parasitism and abuse by incentivizing outsourcing.
The Republican party and Trump have played dead during this scandalous process, even though Trump famously campaigned alongside American tech workers victimized by rapacious capitalism and abuses of the H-1B immigration racket. Singer is one of the GOP’s top donors, and has also given millions to Trump after he won in 2016. This is bribery to get politicians to look away.
Trump’s new tune on H-1Bs is that America needs “smart people,” even as plenty of smart American workers are laid off by the thousands and wages in STEM jobs have continued to stagnate. His claim during his atrocious interview with Laura Ingraham is that foreign companies are dying to open up shop in America, but “can’t” find workers. Are tech jobs yet another sector full of work “Americans don’t want to do”?
From a purely market liberal point of view, Trump has a point. Wages must be watered down in the US if the country hopes to attract foreign capitalists and the easiest way to do that is via immigration. The problem with that is the increased investment provides no benefit to ordinary people if we are forced to become Bangladesh or Mexico in the process.
AT&T is using its tax-cuts like every other corporation has after Trump’s sole signature legislative achievement: stock buybacks, mergers, and paying middlemen to traffic immigrants to replace domestic workers. IBM and AT&T are now declaring that they are in a “multi-year strategic alliance.”
All the tax-cuts in the world will not compel AT&T to innovate. Most American technological advances are a product of government funded research and development, an idea borrowed from the Soviet and Third Reich planned economies to make up for the inefficient allocation of capital and human resources in our system. In 2018, the percentage of GDP allocated for R&D was the lowest since 1955.
China is coming close to matching the US dollar for dollar in the research and development field, with many of its companies owned and directed by the state anyway. Unsurprisingly the US is falling behind and this will inevitably get worse.
Instead of learning from the Chinese system, US plutocracy prefers to hand more money to AT&T, and indirectly the even worse vulture parasites at Elliot Management, so that they can surf the “record high” stock market index. Rather than seriously competing with state and worker-owned Chinese firms like Huawei, AT&T and the US government have been reduced to threatening and concern-trolling countries that choose to do business with the superior innovator.
America could win the global technology war with China simply by getting the state to harness and concentrate white genius and creativity. This has worked for the past 50 years. Instead, America’s tech workers have their wages cut and dignity trampled upon by greedy and useless CEOs and financiers.
After four years of GOP economic orthodoxy, it’s clear Trump has chosen to make the New York Stock Exchange Great Again. He’s proud of it too, just read his twitter.