Intel CEO Otellini: The Democrats Are Destroying our Economy


This is a stunning indictment from the leader of one of America’s most successful technology companies:

Unless government policies are altered, he predicted, “the next big thing will not be invented here. Jobs will not be created here.”

The U.S. legal environment has become so hostile to business, Otellini said, that there is likely to be “an inevitable erosion and shift of wealth, much like we’re seeing today in Europe–this is the bitter truth.”

Not long ago, Otellini said, “our research centers were without peer. No country was more attractive for start-up capital… We seemed a generation ahead of the rest of the world in information technology. That simply is no longer the case…”

Otellini singled out the political state of affairs in Democrat-dominated Washington, saying: “I think this group does not understand what it takes to create jobs. And I think they’re flummoxed by their experiment in Keynesian economics not working…”

As a result, he said, “every business in America has a list of more variables than I’ve ever seen in my career.” If variables like capital gains taxes and the R&D tax credit are resolved correctly, jobs will stay here, but if politicians make decisions “the wrong way, people will not invest in the United States. They’ll invest elsewhere.”

Take factories. “I can tell you definitively that it costs $1 billion more per factory for me to build, equip, and operate a semiconductor manufacturing facility in the United States,” Otellini said…

“If our tax rate approached that of the rest of the world, corporations would have an incentive to invest here,” Otellini said. But instead, it’s the second highest in the industrialized world, making the United States a less attractive place to invest–and create jobs–than places in Europe and Asia that are “clamoring” for Intel’s business.

The most disturbing part of Otellini’s comments is that he says nothing groundbreaking, nothing unexpected, and nothing that we have not heard many times before. Otellini talks about regulation, taxation, litigation and transparency – all issues that have been cited by business leaders for years. But our ‘leaders’ in Washington ignore these concerns, and instead pile on more taxes, more regulation, more litigation costs, greater uncertainty about the climate going forward. And they do all this while claiming to be ‘pro-jobs.’

Will Congress and the White House ever realize that business leaders are telling the truth? As our government continues to make it more difficult to do business in the US, companies must increasingly look to more favorable climates abroad. If Washington really wants to spur job creation here in the US, they should repeal the health care overhaul, reduce spending, cut the corporate tax rate, give up on cap and trade, and reform litigation. Instead we have been treated to an extended experiment in government control – one that is obviously not producing new wealth, new jobs, or any real hope for the emergence of the industries of the future.

Cross-posted from Liberty Central


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Congress and the White House don't care that business leaders are telling the truth

jdw4america (Diary) Tuesday, August 24th at 6:43PM EST (link)

The faster our economy tanks, they believe, the sooner they can fulfill their dreams of a socialist society. That is their agenda, the idiots. As if their lives will remain intact once the barbarians overrun the borders.

Yes but their masters promised them,

cactusjack Tuesday, August 24th at 9:53PM EST (link)

“when we come in and take over, don’t worry, we’ll *take care* of you.”
See, they promised! Everything’s OK!

Even though it's been shown time and time again..

bs61 Wednesday, August 25th at 2:03PM EST (link)

they’ll be the first ones eliminated since they know too much!

 
 

Cloward-Piven is right on track. [nt]

cwilson (Diary) Tuesday, August 24th at 9:56PM EST (link)

.

If ye love wealth better than liberty, the tranquility of servitude than the animated contest of freedom — go home from us in peace. We ask not your counsels or arms. Crouch down and lick the hands which feed you. May your chains sit lightly upon you, and may posterity forget that you were our countrymen! –Samuel Adams

 
 

Where were these big corporations before the election?

d_lamar Tuesday, August 24th at 7:04PM EST (link)

Does anyone know how much Intel gave to the Obama campaign before his election? Are they so stupid that they didn’t see this coming?

Where was Intel?

dougharms Wednesday, August 25th at 11:43AM EST (link)

Quote from Otellini in March of 2009: “You don’t raise taxes on people who create jobs.” I am in the Intel PAC and our congressional scorecard ranks liberals very low. That’s where Intel has been – better do your homework next time – we are NOT GE!

 

Where was Intel?

dougharms Wednesday, August 25th at 11:43AM EST (link)

Quote from Otellini in March of 2009: “You don’t raise taxes on people who create jobs.” I am in the Intel PAC and our congressional scorecard ranks liberals very low. That’s where Intel has been – better do your homework next time – we are NOT GE!

 
 

I'm surprised to see a CEO speaking out like

deano64 (Diary) Tuesday, August 24th at 7:18PM EST (link)

this. Do you think the Dems/Administration will let him get away with saying things like this and go unpunished? Let’s see. Maybe a new punitive tax on US semiconductor manufacturers who move operations or expand overseas would do just fine.

Precinct Committeeman before it was cool.

“The American Republic will endure until the day Congress discovers that it can bribe the public with the public’s money.”
Alexis De Tocqueville

 

As a Silicon Valley Resident

constitutionalconservative (Diary) Tuesday, August 24th at 7:43PM EST (link)

I can only hope that the message is finally starting to sink in. A little more than a decade ago, my Congressional distrct, which leads the nation in creating successful companies, and is the nation’s second wealthiets, was represented by Republican, Tom Campbell– He may not be the favorite of some at RS, but he was a good fit for this district and a generally reliable Republican vote and policy innovator n many areas, who won praise from conservative stalwarts like Tom McClintock.

Now, in my district, and almost every one around it, Democrats win with 70%+ majorities. It would be hard to think of another area in the country where the Republican presence has fallen so far, so fast. IMHO, A lot of that damage was self-inflicted by poor Republican policy and messaging, but a lot was also because people didn’t understand how bad Democratic economic management was going to be.

I’m hopeful that 2010 will be the start of a Republican comeback in Silicon Valley. There is no reason why anyone who cares about innovation or job creation should support Democrats.

 

This does not surprise me, it is the truth.

cactusjack Tuesday, August 24th at 7:47PM EST (link)

My background is not finance, but in the course of ecent business dealings with a large company, I became aware of the signal fact the the pension funds have for some while now been moving money – the pension funds for the teachers in Ohio and Michigan, for example. Not the Soros crowd or even the Warren Buffett crowd , not investing it in Iceland or Malaysia, but the “we’ve got to put this some place safer than it is now.” And they are acting. Millions, even billions (?) of dollars are moving, or, “repositioning.” I know where. This man in the WH is quietly considered now, by Dems and conservatives, anyone who has responsibility in the financial world, a maniac and he is stealth-panicking our Economy to death. FWIW you may quote me and the phrase. It’s one thing to decry on RS how bad the 0 is, it’s another when a non-finance type like me stumbles over something astounding like this.

Ditto from this CPA

greeneyeshade (Diary) Tuesday, August 24th at 10:29PM EST (link)

*NM*

-Greeneyeshade-

 
 

Our company

rick554 Tuesday, August 24th at 7:54PM EST (link)

will be lucky to keep the lights on by next month! Thanks to all those ignotant fools that voted for this commie!

Rick554

 

Our company

rick554 Tuesday, August 24th at 7:54PM EST (link)

will be lucky to keep the lights on by next month! Thanks to all those ignotant fools that voted for this commie!

Rick554

 

It is time for the day of reckoning for obama and obiden.

bobojake (Diary) Tuesday, August 24th at 7:55PM EST (link)

Impeachment must be set up to begin on the 1st day of the New Congress. America and citizens/voters/taxpayers will not stand by and watch and incompetent CORRUPT politicans destroy the greatest Nation on this earth THE USA.
We have had all the CORRUPTION of obama, obiden, schumer, murray, boxer. leafy, reid, pelosi, frank, dodd, kennedy, byrrd, durbin, rangel, waters, Mccain, graham, lincoln. winer, the nelsons, the list goes on. These elitest has not been doing their jobs the last 20 years but padding their own pockets.
Taxpayers/cotozens/voters are not going to let the slime continue to operate in Washington, DC or the State Houses.
Its like I don’t give a dang where the mosque is built as long as it is not on Hallowed Ground and when a radical hijacker airplane landing gear goes through a building and that plane went on to murder Americans at Work, THAT IS HALLOWED GROUND, Got that eman the pman.
I learned long ago you don’t start negoiating with left wing librals or radicals from their side because their side is so far out of reason to begin with and you will be the one getting yenyanged.

There i will sleep better tonight.

If Congress does nothing for 2 years

izoneguy (Diary) Tuesday, August 24th at 8:01PM EST (link)

except hold hearings on the Obamacorruptcats that would be fine with me.

The point cannot be made often enough: Modern liberalism, as embodied in the Obama presidency, is the defender of the status quo. And the status quo is a road to economic ruin. Political forces cannot redistribute the wealth that the economic system does not produce.

Yeah....that will fix the problem.

tacoslayer (Diary) Tuesday, August 24th at 8:16PM EST (link)

Who needs solutions when we can have Congressional dog and pony shows to complain about the last two years…..

Yeah....look at what the Obama wrecking ball has done

izoneguy (Diary) Wednesday, August 25th at 2:03AM EST (link)

in less than 2 years. America cannot afford 2 more years of this crap.

The point cannot be made often enough: Modern liberalism, as embodied in the Obama presidency, is the defender of the status quo. And the status quo is a road to economic ruin. Political forces cannot redistribute the wealth that the economic system does not produce.

 
 
 

Impeachment is a non-starter.

tacoslayer (Diary) Tuesday, August 24th at 8:17PM EST (link)

Hold the line

ywhyvon1 Tuesday, August 24th at 8:45PM EST (link)

I feel if they can just hold the line-assumming either/both house senate gain a majority, and not fund and/or not enforce Obamacare, student loans change, finance deform( how are those new interest rates working for ya?) until 2012 and we have had the opportunity to gut the rest of the rabid dog, maybe we can pull thorugh and produce real reform that is good for America.

Obama has shown us that a rule(law) isn’t worth the paper it’s printed on if it is not enforced ie immigration(actually that was probalby Andrew Jackson but who knows anything about Andrew Jackson?) the trick is not to enforce/fund the new legislation.

I agree, impeachment is a waste of time and money. We need to not MOVEON but rather PLOWTHEMOVER.

Socialist with fork looking for Socialist with pork pie-unknown

Third sentence, last paragraph of Brian's post

gamechange11two Wednesday, August 25th at 9:20AM EST (link)

This is the agenda for the next congress boiled down to one succinct statement. Every republican candidate should be committed to getting every one of these items checked off. What they can’t get passed, they can have ready for the next president to sign on 1/20/13.

While Obama spends the next two years pinning the blame for his failings on everyone in sight, republicans can demonstrate a return to free market principles with every bill they bring to the floor. What gets done, gets done. What doesn’t can be blamed on the party of no jobs and ultimately on its leader. During the next session, the republicans will have a true opportunity to show the two competing economic philosophies in sharp relief. No half measures.

No impeachment, either. Having Zero run again in 2012 will be the republicans’ strongest tool for taking back 1600 P.

 
 
 
 

I've flown over 150,000 miles between Europe and Africa this year

Old_Crow (Diary) Tuesday, August 24th at 8:27PM EST (link)

(mostly in business or first class thanks to all my frequent flier mileage) and have had dozens of conversations with business folks moving at least part of their business overseas.

These are multi-year investments – many companies are not confident that we (Republicans) can or have the will power to turn things around in a significant fashion.

Folks – this country is in more trouble than you can possibly imagine.

These companies are making mid to long term investments that will take years of a proven pro-business track record to even begin to see a turn around.

I’ve been meaning to write a diary on this, perhaps I will (leaving in 10 days for another 90+ day trip).

P.S. There’s also plenty of folks moving overseas from CONUS.

“Enlightened statesmen will not always be at the helm.” — James Madison

OLD CROW

ywhyvon1 Tuesday, August 24th at 8:48PM EST (link)

Please, do tell. I;m sure you are very busy but damn, historical events of perhaps Biblical proportions are upon us and you are holding out on the word?

If you have something to say man, just say it. Please.

Socialist with fork looking for Socialist with pork pie-unknown

 

Not only have we run up a huge tab

Death_of_the_Donkey (Diary) Tuesday, August 24th at 8:52PM EST (link)

that is going to be painful to repay (with both increased taxes and a decline in expected service), but demographics are not exactly on our side with this one. Business isn’t stupid. When they saw the US consumer finally throw in the towel and begin to save again, they abandoned us with fury, as they know that once our leverage was gone the 5% of the world population that we are wasn’t going to be able to sustain the growth that they need (especially when at least a couple billion in the rest of the world are just starting to consume).

 
 

I agree with a lot of what he says...

charlienosurf Tuesday, August 24th at 8:42PM EST (link)

At least the 1st part regarding regulation burdens with the cost of manufacturing. and building new plants – however his desire to basically import “gut-cheap” labor from third world countries like India and SE Asia to replace American technology jobs would be devastating to one of the last industries still providing jobs in the US.

I see your point, but

taxpayer1234 (Diary) Tuesday, August 24th at 8:51PM EST (link)

if some of the disgustingly onerous taxation were removed, US companies could afford to hire Americans again. Before the crash, some US companies that offshored found out what a huge expense and hassle it was, and had started moving operations back here. Today, many US companies are riding out the bad economy; and if the taxes and regs aren’t slashed soon, the offshoring will continue.

I agree - and we need to cut the H1B visas!

bs61 Wednesday, August 25th at 2:34PM EST (link)

All of my unemployed IT folks, had some hope when offshoring failed, now they are stuck waiting for the recession to be over.

No, we need to increase them..

Neil Stevens (Diary) Wednesday, August 25th at 2:44PM EST (link)

…but just make it easy for H1-B holders to change jobs in the US.

RS contributing editor, technical administrator, and “a hardy variety of crabgrass.”
Read the RedState Posting Rules

Unlikely Voter: Poll Analysis, Election Projection.

“I rejoice that America has resisted.” – William Pitt, the Elder

 
 
 

Remember where Intel is

JoeG Wednesday, August 25th at 12:21AM EST (link)

Intel is in California and Oregon. Getting anything done takes endless years of government paperwork.

Unfortunately many companies are leaving the country, when just relocating to the South will ease the regulatory burden.

 
 

Here's the problem

Death_of_the_Donkey (Diary) Tuesday, August 24th at 8:49PM EST (link)

These guys don’t want to come out and say it, but we are an aged market and not where they were going to look for growth no matter what policies are in place or who is in power. Companies can read the demographic writing on the wall and knew that not only are we an aging population (with the costs that entails), but we were also so overleveraged for the past 30 years that once the party stopped (as it did in 2007/8/9) we were going to take years to retrench, pay off debt, and emerge as a nation that consumed less (on a per capita basis).

Do we need to lower corporate taxes – yes (they don’t really generate much of the overall pie anyways) and do we need to regulate much more tactically – yes (but regulation is needed as is proven time and again). But even with that, our time as the world’s consumer has likely ended and in the long run our economy will be the better for it.

 

I can think of no technology company, not even defense aand aerospace, where the USA has gained ground in the last ten years...

H (Diary) Tuesday, August 24th at 8:59PM EST (link)

The template looks like this, cut from the OP:

Not long ago, ________ said, “our research centers were without peer. No country was more attractive for start-up capital… We seemed a generation ahead of the rest of the world in ___________ technology. That simply is no longer the case.

Congress set us up for the fall, Bush laid down for them. Now Obama and his wrecking crew are delivering the death blow.

When business has been busy fighting CORRUPT politicans, ECO FREAKS and Socialist not much can improve until the frivolous leeches are minimized.NT

bobojake (Diary) Tuesday, August 24th at 11:24PM EST (link)

I was ranting about our jobs going elsewhere..

bs61 Wednesday, August 25th at 2:51PM EST (link)

for a long time – back with manufacturing, and NAFTA, then technology. Now I see that progressives have been doing is redistributing the wealth globally to those less fortunate! It’s an outrage. I watched our own layoff, where 3-4 Indians replaced 1 American, and the American’s had to train their own replacements. Our executives said outsourcing will make ensure our people get to work on the better projects and get trained in new technologies, but it was a lie, And to top it off, our executive got huge bonuses for meeting his objectives to offshore.

Oh please, not a Perot-head (nt)

Neil Stevens (Diary) Wednesday, August 25th at 2:52PM EST (link)

RS contributing editor, technical administrator, and “a hardy variety of crabgrass.”
Read the RedState Posting Rules

Unlikely Voter: Poll Analysis, Election Projection.

“I rejoice that America has resisted.” – William Pitt, the Elder

I hated Perot!

bs61 Wednesday, September 8th at 2:06AM EST (link)

He was the first to take advantage of NAFTA and outsource IT jobs to India!

NAFTA had nothing to do with India

JSobieski (Diary) Wednesday, September 8th at 2:08AM EST (link)

So NAFTA did not outsource your job to India.

NAFTA was limited to North America, ie North America Free Trade Agreement

My rules of the road for primary season.
Rule #1: Vote for YOUR first choice in the primaries
Rule #2: Vote for the R in the general.
Rule #3: Don’t let anyone convince you to violate Rule #1 or Rule #2
Rule #4: When in a center-right argument, reaffirm Rules #1-#3–it will help us all to get along better.
Rule #5: If you are using the language of the left, you probably aren’t furthering conservativism
Rule #6: The priority is issues first, candidates second, and supporters third. Nobody is bigger than the issues. Conversely, if you spend your time focusing on supporters, you are wasting everyone’s time.

STOP THE MADNESS!

A reduction in the rate of spending increases is NOT a cut!
In-state tuition for illegals is NOT amnesty!
Requiring someone to pay their medical bills is NOT an individual mandate!
Reducing tax rates is NOT a tax increase!

Sorry yes, you are right...

bs61 Wednesday, September 8th at 12:41PM EST (link)

I just felt that first our manufacturing jobs went to Mexico and now our IT jobs overseas was a progression if you will.

 
 
 

Not a Perot Head or Ron Paul supporter -

bs61 Wednesday, September 8th at 2:09AM EST (link)

Just an IT worker who is now making 1/3 of what I used to before.

I feel bad that you would say that, considering I find you and RedState to be the cream of the crop.

 
 
 
 

I Sent This To Everyone I Know

Spartan4Life (Diary) Wednesday, August 25th at 12:03AM EST (link)

Even the liberals.

I used the tag line:

“We need change alright. Change to some people who know how to create jobs.”

 

Tax abatements & border control

doncorleone Wednesday, August 25th at 8:17AM EST (link)

Both of which can be done at the local/state level. The fed-gov has shown little or no interest in either of these. Manufacturing goods and their related services are the only path to a true economic recovery. Tax and utility abatements are the only attractive incentives that will draw mfg. back to the U.S.. Border control will be achieved by the following, armed national guard troops, a functioning fence, and punative, painful, fines to companies who employ illegals. These common sense fixes are not new, they just need to either be finally implemtented or revisited.

 

Our Leaders?

edinnola Wednesday, August 25th at 9:13AM EST (link)

It would be hard for a rational person to disagree with much in this article, however I think the people of this country have bought into yet another gradual deception, of which they are completely unaware. The concept of those guys in Washington being our leaders is hogwash. They are our employees, hired to do a job that they are not doing.

I suppose I could be wrong about the rest of you, but I don’t need a leader, I am perfectly capable of determining my own destiny, and I would appreciate the folks in Washington allowing me to do so. Once again, we hire them to represent us (that means do what we tell them to do), not lead us (as in force us to do their bidding). We already know where we want to go, and it’s not the direction that these self styled leaders are taking us. They aren’t leaders, they are employees. It’s time that they started acting that way, and equally, it’s time we once again began thinking of them that way. They are hired to be followers (of our direction) not our leaders.

Your post is exactly correct.

gallowglass Wednesday, August 25th at 11:09AM EST (link)

Reframing our relationship with our ‘government’ is absolutely and without a doubt, the most constructive thing we can possibly do to correct the abysmal situation that abdicating ownership of our lives has brought us to.

Thank you.

 
 

What about tort reform

jamesmiller Wednesday, August 25th at 1:34PM EST (link)

We have laws being written bt lawyers. Regulations being vetted by lawyers. Lawsuits being judged by judges approved by the lawyers union (American Bar Association) and argued by lawyers who get a percentage of the award.
This leads to multi milloin dollar lawsiuts for things like hot coffee being too hot. Or legislation that is unreal and unreasonable like the democrat in the mid 1990s who wanted all buckets to be manufactured with a hole in the bottom so they could not hold water. It was debated on the house floor. Iit was NOT defeated it was ammended. If you think i am kidding look at the warning on the side of a 5 gallon bucket of soap found in any store, the one with the small child drowning. Look also at the plethora of warning labels on consumer products. They were put there to AVOID layers and lawsuits. Companies have to buy insurance to protect them selfs raising the cost of doing business.