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Category Archives: Economy

How China Built ‘iPhone City’ With Billions in Perks for Apple’s Partner

A vast, boxy customs center acts as a busy island of commerce deep in central China.Government officers, in sharply pressed uniforms, race around a maze of wooden pallets piled high with boxes — counting, weighing, scanning and approving shipments. Unmarked trucks stretch for more than a mile awaiting the next load headed for Beijing, New York, London and dozens of other destinations.The state-of-the-art facility was built several years ago to serve a single global exporter: Apple, now the world’s most valuable company and one of China’s largest retailers.The well-choreographed customs routine is part of a hidden bounty of perks, tax breaks and subsidies in China that supports the world’s biggest iPhone factory, according to confidential government records reviewed by The New York Times, as well as more than 100 interviews with factory workers, logistics handlers, truck drivers, tax specialists and current and former Apple executives. The package of sweeteners and incentives, worth billions of dollars, is central to the production of the iPhone, Apple’s best-selling and most profitable product.

 
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Posted by on April 24, 2017 in Asia, Economy

 

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Freeing up the rich to exploit the poor – that’s what Trump and Brexit are about

Propaganda works by sanctifying a single value, such as faith, or patriotism. Anyone who questions it puts themselves outside the circle of respectable opinion. The sacred value is used to obscure the intentions of those who champion it. Today, the value is freedom. Freedom is a word that powerful people use to shut down thought.When thinktanks and the billionaire press call for freedom, they are careful not to specify whose freedoms they mean. Freedom for some, they suggest, means freedom for all. In certain cases, this is true. You can exercise freedom of thought, for instance, without harming others. In other cases, one person’s freedom is another’s captivity.

Source: Freeing up the rich to exploit the poor – that’s what Trump and Brexit are about | George Monbiot | Opinion | The Guardian

 
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Posted by on April 11, 2017 in Economy, Europe, European Union

 

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Multinationals: The retreat of the global company

IT WAS as though the world had a new appetite. A Kentucky Fried Chicken (KFC) outlet opened near Tiananmen Square in 1987. In 1990 a McDonald’s sprang up in Pushkin Square, flipping burgers for 30,000 Muscovites on its first day. Later that year Ronald McDonald rolled into Shenzhen, China, too. Between 1990 and 2005 the two companies’ combined foreign sales soared by 400%.McDonald’s and KFC embodied an idea that would become incredibly powerful: global firms, run by global managers and owned by global shareholders, should sell global products to global customers. For a long time their planet-straddling model was as hot, crisp and moreish as their fries. Today both companies have gone soggy. Their shares have lagged behind America’s stockmarket over the past half-decade. Yum, which owns KFC, saw its foreign profits peak in 2012; they have fallen by 20% since. Those of McDonald’s are down by 29% since 2013 (see article). Last year Yum threw in the towel in China and spun off its business there. On January 8th McDonald’s sold a majority stake in its Chinese operation to a state-owned firm. There are specific reasons for some of this; but there is also a broader trend. The world is losing its taste for global businesses.

Source: Multinationals: The retreat of the global company | The Economist

 
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Posted by on March 9, 2017 in Economy

 

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How to Survive the Trump Era

In barely a month, US President Donald Trump has managed to spread chaos and uncertainty – and a degree of fear that would make any terrorist proud – at a dizzying pace. Not surprisingly, citizens and leaders in business, civil society, and government are struggling to respond appropriately and effectively.Any view regarding the way forward is necessarily provisional, as Trump has not yet proposed detailed legislation, and Congress and the courts have not fully responded to his barrage of executive orders. But recognition of uncertainty is not a justification for denial.

Source: How to Survive the Trump Era by Joseph E. Stiglitz – Project Syndicate

 
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Posted by on February 21, 2017 in Economy, North America

 

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Zwijg of je vliegt eruit

Dolblij was Thijs toen hij aan de slag kon bij Ryanair. Hij had tientallen sollicitatiebrieven gestuurd en was anderhalf jaar op zoek naar een baan als piloot. Met een dikke ton schuld voor zijn vliegopleiding maakte hij zich zorgen of hij ooit nog aan de bak zou komen. Het telefoontje van Ryanair kwam dus als een verlossing.De selectie bleek een eitje: een gesprekje van een kwartier met twee piloten en een test van een kwartier in de vliegsimulator. Hij was zo aangenomen. Maar toen hij zijn contract onder ogen kreeg, moest Thijs even slikken. Hij moest samen met twee andere piloten die hij niet kende en ook nooit zou leren kennen een bv oprichten in Ierland. Hij zou als mededirecteur van zijn eigen bedrijf en als ‘zelfstandige’ voor Ryanair gaan vliegen. Dat gebeurde via een uitzendbureau voor piloten dat hem maandelijks uitbetaalde.

Source: Zwijg of je vliegt eruit – De Groene Amsterdammer

 
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Posted by on February 20, 2017 in Economy

 

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All Aboard The Post-TPP World

A half-hearted near handshake between US President Barack Obama and Russian President Vladimir Putin before and after they spoke «for about four minutes», standing up, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Lima, Peru, captured to perfection the melancholic dwindling of the Obama era.

Source: All Aboard The Post-TPP World | Zero Hedge

 
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Posted by on November 28, 2016 in Economy

 

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Battle for the Ages: Protectionist Trumponomics vs. Neoliberalism

Donald Trump’s red wave on Election Day was an unprecedented body blow against neoliberalism. The stupid early-1990s prediction about the ‘end of history’ turned into a – possible – shock of the new.The new global nativism? Perhaps a new push towards democratic socialism? Too early to tell.Once again. A body blow, not a death blow. Like the cast of The Walking Dead, the zombie neoliberal elite simply won’t quit. For the Powers That Be/Deep State/Wall Street axis, there’s only one game in town, and that is to win, at all costs. Failing that, to knock over the whole chessboard, as in hot war.

Source: Battle for the Ages: Protectionist Trumponomics vs. Neoliberalism

 
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Posted by on November 11, 2016 in Economy, North America

 

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How to hide it: inside the secret world of wealth managers 

The Pritzker family is one of the wealthiest in the United States. Their assets, which amount to $15bn, are held in 60 companies and 2,500 trusts, using structures and strategies that Forbes magazine – normally a cheerleader for wealthy elites – describes with an unusual hint of moral distaste as “shadowy … constructed to discourage outside inquiry – and brilliantly exploitative of loopholes in the tax code.”
This complex asset-holding structure was created not by the Pritzker family itself but by its lawyers, accountants, tax specialists and investment advisers. In this respect, the Pritzkers are no different to tens of thousands of super-rich families and individuals worldwide, who use the services of wealth managers. These professionals not only shelter wealth from taxation but, in the words of one academic paper, serve to “obscure concentrations of economic power”, using vehicles that make it difficult, if not impossible, to identify the true owners of wealth.

https://www.theguardian.com/business/2016/sep/21/how-to-hide-it-inside-secret-world-of-wealth-managers

 
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Posted by on November 6, 2016 in Economy

 

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Why the New Silk Roads terrify Washington

Almost six years ago, President Putin proposed to Germany ‘the creation of a harmonious economic community stretching from Lisbon to Vladivostok.’This idea represented an immense trade emporium uniting Russia and the EU, or, in Putin’s words, “a unified continental market with a capacity worth trillions of dollars.”In a nutshell: Eurasia integration.Washington panicked. The record shows how Putin’s vision – although extremely seductive to German industrialists – was eventually derailed by Washington’s controlled demolition of Ukraine.

Source: Why the New Silk Roads terrify Washington

 
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Posted by on October 12, 2016 in Asia, Economy, Europe, North America, Reportages

 

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Panama: The Hidden Trillions

In a seminar room in Oxford, one of the reporters who worked on the Panama Papers is describing the main conclusion he drew from his months of delving into millions of leaked documents about tax evasion. “Basically, we’re the dupes in this story,” he says. “Previously, we thought that the offshore world was a shadowy, but minor, part of our economic system. What we learned from the Panama Papers is that it is the economic system.”

Luke Harding, a former Moscow correspondent for The Guardian, was in Oxford to talk about his work as one of four hundred–odd journalists around the world who had access to the 2.6 terabytes of information about tax havens—the so-called Panama Papers—that were revealed to the world in simultaneous publication in eighty countries this spring. “The economic system is, basically, that the rich and the powerful exited long ago from the messy business of paying tax,” Harding told an audience of academics and research students. “They don’t pay tax anymore, and they haven’t paid tax for quite a long time. We pay tax, but they don’t pay tax. The burden of taxation has moved inexorably away from multinational companies and rich people to ordinary people.”

The extraordinary material in the documents drew the curtain back on a world of secretive tax planning, just as WikiLeaks had revealed the backroom chatter of diplomats and Edward Snowden had shown how intelligence agencies could routinely scoop up vast server farms of data on entire populations. The Panama Papers—a name chosen for its echoes of Daniel Ellsberg’s 1971 leak of the Pentagon Papers—unveiled how a great many rich individuals used one Panamanian law firm, Mossack Fonseca (“Mossfon” for short), to shield their money from prying eyes, whether it was tax authorities, law enforcement agencies, or vengeful former spouses.

Source: Panama: The Hidden Trillions by Alan Rusbridger

 
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Posted by on October 10, 2016 in Economy

 

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