How Multinationals Support Slavery and Slave Like Workers

 Executive Summary

• Multinationals are based in developed countries without slavery — but they support slavery in other countries.
• We cover how multinationals actively support slavery.

Introduction

Multinationals pretend, are the media allows them to pretend that they stand for moral behavior. However, while they virtue signal, they aggressively support overseas slavery.

See our references for this article and other related articles at this link.

Was Slavery Abolished?

Slavery was abolished in white countries over a hundred years ago. However, this did not stop the desire for slavery. Multinationals found that they could relocate their factories to countries without labor regulations or environmental regulations. The original logic presented for this was that the manufacturing that was to be relocated would only impact low-level types of manufacturing. Now that iPhones and computers, as well as medical equipment and virtually anything, are made in these overseas factories. This original presentation of what types of manufacturing would be outsourced was deliberately deceptive.

In the area of IT outsourcing — multinational consulting firms like IBM and Accenture have massive amounts of labor in India. SAP and Oracle obtain roughly 90% margin on their support, primarily by locating India’s support. We cover this margin the article How do SAP and Oracle’s Support Profit Margins Compare to Pablo Escobar.

This is the central part of their design that allows SAP and Oracle to demonstrate profitability. If the support margins of their business were removed, both of these companies would be barely profitable. Once the support contract is signed, there is little the customer can do to ask for higher quality domestic resources. A customer can attempt to cancel their support contract. However, this means either bringing the support “internal” or using a third party support entity. But this also means losing access to future upgrades and a number of other risks that most software customers are not willing to take on.

Slavery’s Second Wind

The desire for labor exploitation is universal.

I have discussed slavery with both Africans living in Africa or Indians residing in India. While they frequently decry the slave trade and colonialism. However, in a later part of the conversation will describe how they enjoy having servants and how the typical pay in their country is so low that they can hire many people to help them with chores exceptionally inexpensively.

Therefore, we have a situation with slavery where every single person states that they disdain slavery, but where most people seek to bring slave conditions back — as long as they are in the “master role.”

For instance..

1. Apple will never admit to having slaves or people living in slave-like conditions that build their products and have enormous margins.
2. SAP or Oracle do not tell customers that nearly all of the support provided to their customers is provided by people living in India and being paid Indian wages. All while SAP and Oracle charge support in Western cost standards.

In recent years, in the US, there has been a sharp increase in the number of yearly foreign workers brought into the country. The cover story is that these multinationals need to access people who have skills that do not exist in sufficient quantity in the US. However, the real story is that these multinationals “sell” citizenship to those seeking to flee third world countries — and bill out at Western standards, while paying considerably less. Some of these workers are bonded labor, as we cover in the article How Indian IT is Bringing Bonded Labor to the US. Multinationals that hire them to know this, and do not care.

Workers on foreign worker visas can be exploited. It is not slavery, but it is restricted labor that is controlled by the employer.

All of these things illustrate that companies seek to find vulnerable workers, workers overseas who lack labor or environmental protection, or importing workers from third world countries. These are workers who can be pressured to conform and to work for less as the employee is, in significant part giving their labor to leave a third world country and gain entry for themselves and all future generations in a developed or white country.

Secret of Slavery #1: Modern Corporations Love Slavery or Borderline Slavery

Apple, which is one of the wealthiest companies in the world, absolutely loves modern-day slavery and makes all of its products in China, much of them at the subcontractor FoxConn. In this case, the beneficiaries are Apple (mostly white, and the slaves are primarily Chinese, which again as there are not Africans involved, is of little interest generally). Wealthy software vendors SAP and Oracle also love borderline slavery. They owe most of their margins to the fact they have outsourced most support to India, and this has allowed them to achieve the same margins as Pablo Escobar as we cover in the article How SAP and Oracle’s Profit Margins Compare to Pablo Escobar. In this case, the beneficiaries are SAP, and Oracle (who’s management is mostly white, and the slaves or borderline slaves are mostly Indian — which again, due to the lack of Africans, means that to most of the population, this is also not interesting)

While workers toiled away 6 days a week 12 hours a day for $400 per month, Tim Cook made $148 million in 2018. Apple could massively increase the pay of Chinese workers or build products in the US or a country with labor standards, but they prefer not to. They prefer slavery. This is done entirely in plain view, and the US government is completely fine with it. 

Conclusion

While slavery has been illegal for over a hundred and fifty years in the US, multinationals increasingly have the means to bring back if not full slavery than a type of indentured labor, and to reduce the labor protections afforded their “workforce drastically.” Several decades ago, it would have been much more challenging to do this as the communication effort would have been much higher. But the Internet, communication to anywhere is much easier. This allows companies to sell at a Western level of pricing while using inputs from all over the world and seeking the countries with the lowest labor costs and lowest labor standards. All of this rapidly increasing income inequality and other factors have now pushed the US to have extraordinarily high-income inequality. And this is to a level without precedent in modern times or literally for hundreds of years. The US income inequality mirrors the income inequality of the middle ages.

None of this would have been possible without the outsourcing of jobs to third world nations.

The US Democrat Party, which traditionally took the side of workers over business interests, with Clinton abruptly shifted to supporting business over workers as their funding from the delining unions dried up. The US now has two monopolistic political parties. Third parties cannot get started or realistically challenge the two monopolistic parties due to restrictions put in place by the two monopolistic parties.

These two parties both work against the interests of workers.

1. The Democrats have become the party of non-whites, while the Republicans have become the party of whites.
2. There are very few actual policy differences between these two parties, but they “market” themselves to their constituents very differently, so they appear much different to the electorate than they are in practice.

Many of their disagreements are, in essence, political theater to try to convince the electorate that they are looking out for “their” interests. Meanwhile, both continue to receive massive funding from business and the financial sector in particular.

Multinationals have one objective.

Profit Maximization is the Only Goal

Profit maximization. Not human rights, not stopping slavery, not ecology — profit maximization. All of the virtue-signaling they make about being interested in other things are false claims.

Does Apple care about racial justice? For their overseas factories also? 

This is why the claims of multinationals that they oppose slavery cannot be true.

Slavery is profit-maximizing and therefore fits perfectly into capitalism. If multinationals find themselves limited by regulations in societies that have evolved to build protections for its citizens, multinationals can switch their “production” to countries that do not have these protections.

To be opposed to slavery means that an organization would not have to be a profit-maximizing entity. And corporations have made it very clear in an enormous amount of written opinion — opinion backed up by economists and codified in an unlimited number of corporate charters. The only goal of a corporation is profit maximization. Or put more specifically — maximizing shareholder value.

The Response from Some Blacks to the Article

We received the feedback from some blacks that they did not like this article because it proposed that people other than Africans can be slaves. We cover this in the article How Making False and Selective Claims is Part of a Scam by Black Americans.