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Intel CEO: Things Need to Change in the U.S.

By - Source: Tom's Hardware US | B 3 comments

Intel's Paul Otellini predicts that the "next big thing" won't happen in the States unless government policies change.

Monday night Intel CEO Paul Otellini warned government officials that the U.S. will face a huge tech decline if government policies are not altered. In fact, the "next big thing" won't be invented here in the States, and jobs will be created outside our borders.

The warning was part of his observations about the Obama administration and the nation's economy during dinner at the Technology Policy Institute's Aspen Forum. He took aim at the U.S. legal environment, claiming that its become so hostile to business that there could be "an inevitable erosion and shift of wealth, much like we're seeing today in Europe--this is the bitter truth."

He went on to criticize the administration's Keynesian policy of economic stimulus and its inability to understand the concept of creating new jobs. "They're in a 'Do' loop right now trying to figure out what the answer is," Otellini told the audience.

"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. He also added that the majority of his costs were taxes and regulations not imposed in other countries. If the rates matched those with the rest of the world, outside corporations would have more of an incentive to invest in the U.S.

Former HP CEO and current Republican Senate candidate Carly Fiorina pointed out just a day prior that corporate tax rates are the second highest in the world. Fiorina also said that government policies are pushing jobs overseas rather than making U.S. companies more competitive against international rivals.

Bottom line, if politicians don't cut business taxes, people will not invest in the United States. "They'll invest elsewhere," Otellini said.

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  • 2 Hide
    darksai , 26 August 2010 04:39
    'bout time the 1st world realises that capitalism stifles innovation and true growth in the long run.
  • 2 Hide
    LePhuronn , 26 August 2010 04:48
    Or alternatively stop being so greedy, stop wasting money on shareholders and exorbitant executive salaries and put the money back into the company. The only reason everything is made in the East is because they money saved goes into the pockets of the upper management.
  • 0 Hide
    runningbot , 27 August 2010 01:56
    Surely Intel along with hundreds of other major "US" corporations have figured out that they can dodge the majority of US corporate taxes simply by relocating their headquarters to a PO Box off shore? But then again, Greed always rules. The Fortune 500 won't stop until the government pays Them to do business here, wait... oil subsidies anyone?