Can money really "get lost"? I would think a dollar that otherwise would have been paid via salary to one of these 14k now goes some other way. Somebody else gets it. Somebody else can spend it.
And they keep that money in their pocket, do they?
On a personal level, this sucks for those Cisco employees. But it's weird that the land of disruption advocates "wasting" money on unneeded labour. There isn't much sympathy for the taxi drivers Uber is harming.
So I own stock in most large companies through index funds. I want to someday retire and the government won't/ can't provide for me to life up to my standards. No offshore tax haven here.
His case is in fact the majority, the radical majority. You couldn't be more wrong about how US investors store their wealth, it's almost entirely located within the United States, which is proven by estimates on domestic held wealth by the major banks, the Fed, and the Treasury. If you have something to dispute them with, let's hear it.
Americans almost never use off-shore tax havens, because the IRS has no boundaries on chasing them down. US income is taxed globally, and the IRS will destroy you if you attempt to hide it from them and they find out, which they almost always do (they have direct or indirect access to nearly all global banking, financial transactions, stock transactions, bond purchases; they can also directly or indirectly get access to nearly all banks accounts in first world nations through treaties). There are very few countries where you can even attempt to hide your money from the IRS now, and most of those you'd be a fool to park money in.
I think the % of Americans doing the off-shore thing is very very low.
Now from a raw $$$ standpoint, perhaps it is a problem. Is 10% of wealth hidden offshore by the .1% of abusers? Or is it only 5% I doubt anyone knows for sure. I suspect it is less than the "legally" held offshore money using the double irish and other such accounting tricks.
I guess that depends on what you consider often. Because the money outside of tax-havens "doing work"in the economy is vastly greater than money hidden in tax-havens.
Bad comparison. Taxi drivers losing business to Uber can easily go to work for Uber themselves (in fact, many of them have done exactly that). Someone being laid off by a company like Cisco can't just go work for the competition that easily; it wasn't a simple situation of a better competitor coming along that caused these Cisco employees to lose their jobs. If anything, it's because the work was outsourced offshore, and these employees can't easily chase their jobs to China.
>Bad comparison. Taxi drivers losing business to Uber can easily go to work for Uber themselves.
The lower barrier to entry of Uber means that there are more people competing for those taxi jobs, like people who can do it part-time. How many taxi-drivers did you know pre-Uber? I knew zero. Now I know multiple people who are, basically, taxi-drivers. (I'm making no claim as to whether this development is good or bad, it just is).
So yeah, they can "easily go work for Uber" as a contractor for less money. I imagine that the Cisco workers could do the same if they wanted to be contractors for less money.
