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Former Council of Economic Advisors member Matthew Slaughter on what is needed to keep companies from moving jobs overseas.
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Speaking of change in -- world that there's a new report out the finds that the US.
Is not as much the land of opportunity as it once was in fact big multinational companies are shifting their focus.
Overseas and of course along with that they're taking jobs with them so.
How can we keep America competitive joining us now Matthew slaughter Dartmouth tuck school of business MBA program.
Associate dean and former council of economic advisor member.
Under President Bush.
And inactive.
Would this is a big bill now we're here we heard a lot in politics we hear a lot with President Obama about the role multinationals.
But.
The notion that the doing more outside of this country than in this country isn't simply about saving money is that.
-- in -- the predominant reason that we see a lot of these global corporations expanding abroad as to take advantage of the revenue growth.
So you have such fast economic growth in recent years and decades in countries like China and India and a lot of other advanced advancing countries.
The reality is a lot of US based corporations that's where they see growth in revenues and profitability.
So a lot of the growth these companies have had outside of America is to pursue new customers and and grow profits.
So so what the I -- mean then to sort of punish them.
As a way of lowering them back into America -- are smarter way to go about this.
-- a great question is a much smarter way to go about it it the right way to think about it it's not that there's a fixed number of jobs in the world and -- somehow shifted out of America.
Really what's been happening is these companies are taking advantage of that growth.
Some of the jobs they have to create in those new markets so retailers have to have some people on the ground to service those customers.
But the challenge for America increasingly is how we can create jobs in America that are serving the global economy.
Inside these corporations there's a lot of high wage high skilled jobs in areas like.
Marketing and design and research and management.
That can be located a lot of locations around the world so the challenge for America's how we can create a policy environments that these very good global corporations.
Wanna build more jobs in America that are linked to the global economy and -- How exactly do we do that because I got to tell you the trends we're seeing a particularly in and higher education.
A lot of people actually coming here from other countries other go to school for years maybe they wanna do.
And then -- alternate they call it expertise what them.
So that that's a great point and so we gotta have some Smart policies and I think it's helpful thing about the long term in the short term in the long term you hit upon a huge issue which is.
-- America's skills.
Part of how we -- -- -- that is through our educational system system.
Part of it is had have smarter immigration policies that at the tuck school at Dartmouth we see in this and fortunately in recent years where.
Very talented foreign nationals come to talk they get a great education and they want to work in America but our immigration rules make it very hard for them to do so so they tend to go home.
So you look at a great global collaboration like Siemens.
But Siemens in recent years in America they have had about 60000 employees.
But they in recent years have had about two to 3000 job openings that they've struggled to fill because they can't find the right kinds of skills and for the workers in America.
So that's a challenge for big corporations things like immigration and skills but I got tied to challenge even for a lot of small and medium sized businesses to.
They're great group a -- students this year that avenue startup called cook flat it's meant to help create a secondary market and online coupons.
There -- a global corporation already in some ways that some of their initial funding has come from a foreign company.
But they've struggled and attract some talent.
In part because they it's hard for them to get skilled foreign nationals the immigration rules we have are too burdensome and too expensive for small companies like -- -- You know -- the I think go a lot of people feel like this country has as peak.
And they are articulated in different ways some are saying listen sort of -- divvy up all the money and and the profits that are out there are some are saying we need have you know trade wars and draconian rules against multinationals.
Where you're saying we only have a few seconds left but I just wanna sort of make it clear that there are ways to continue the greatness of this country that we just haven't reached our peak potential yet.
I think that's right there's sound policies we can put in place they're not -- or Republican or Democrat policies that just Smart ones.
That'll allow us to continue to grow great jobs and businesses in the United States and so there's great potential but we've got to put the right policies in place.
Thank you so much Matthew slaughter great work as usual we appreciate it.
