Tag Archives: Bust

Intel CEO blames Democrats for destroying the economy

Article from CNET News by someone who understands job creation. (H/T Neil Simpson’s latest round-up)


Intel Chief Executive Officer Paul Otellini offered a depressing set of observations about the economy and the Obama administration Monday evening, coupled with a dark commentary on the future of the technology industry if nothing changes.

Otellini’s remarks during dinner at the Technology Policy Institute’s Aspen Forum here amounted to a warning to the administration officials and assorted Capitol Hill aides in the audience: 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.”

[…]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.”

Here’s Republican Senate candidate Carly Fiorina, from the same article:

The comments from Intel’s chief executive echoed statements made a day earlier by Carly Fiorina, the former HP CEO turned Republican Senate candidate.

America’s skilled-worker visa system is so badly broken and anti-immigration that “we have to start from scratch,” Fiorina said, adding that too many government policies push jobs overseas instead of making U.S. companies competitive against international rivals.

“Our corporate tax rates are the second highest in the world,” and Congress has repeatedly failed to make an R&D tax credit permanent, Fiorina told the Aspen audience. It’s time to start “acknowledging the reality that companies go where they’re welcome,” she said. (The effective U.S. corporate income tax is 35 percent, far over the industrialized-nation average of 18.2 percent.)

Here’s a recent IBD article with more from Otellini, and other CEOs

First Otellini:

“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 U.S.,” he said. And 90% of that added cost, he said, is due to taxes and regulations that other countries don’t have.

Then other CEOs:

Earlier in the week, Illinois Tool Works CEO David Speer, whose company employs 60,000 worldwide, laid out his dilemma — and that of hundreds of other CEOs: “I could borrow $2 billion tomorrow for 3 1/2%,” Speer said. “But what am I going to do with it?”

[…]In June, Ivan Seidenberg, CEO of Verizon Communications and head of the Business Roundtable, warned of a growing anti-business slant in both Congress and the White House. Tax hikes, regulations and constant policy shifts, he said, “harm our ability … to grow private-sector jobs in the U.S.”

And don’t forget the costs that Obamacare imposed on companies, causing all medical premiums to go through the roof because of the new health care mandates and taxes on things like medical devices.

Red State explains what the Obammunists should be doing:

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.

It takes a lot of courage for a CEO like Otellini to come out against the Obama administration, and the neo-Keynesian oligarchy in Washington. Taking a billion dollars from Intel to study Chinese prostitutes and to build turtle tunnels is not a good thing to do if you want to have more jobs. But the thing is – Obama thinks it is a good thing to do, because he is totally ignorant of how the economy works. So, don’t vote for him or any of his silver-spoon limousine liberal friends who were born with rich parents. Democrats don’t know how jobs are created.

Video of Jim Demint explaining the two causes of the recession

I thought this was well done, and accurate.

Unfortunately, Bernanke was confirmed by the Senate. Hayek would not approve.

I kind of minimized the low interest rate problem before, but I changed by mind after my Dad talked to me about Robert P. Murphy’s “The Politically Incorrect Guide to Depression”. (I got it for him because he liked “The Politically Incorrect Guide to Capitalism” so much, as did I!)

MUST-SEE: The John Maynard Keynes vs Friedrich A. Hayek rap video

This is from ECM.

I watched this about a half-dozen times so far. It’s awesome! I love it!

I’m sure it will come as no surprise to everyone that I come out on Hayek’s side on this debate. I like the Austrian School of Economics. I’m a supply-sider. I believe in the free market, free trade, private property, saving and investing, entrepreneurship, distributed power, small government, and freedom from government intervention.

Who was F.A. Hayek?

F.A. Hayek was the greatest economist of the 20th century. He won the Nobel prize in Economics. His greatest works are “The Road to Serfdom”, “The Constitution of Liberty”, and “The Fatal Conceit”. If you take a look at the list of the top 10 books that all conservatives should read, you will see that The Road to Serfdom is #1 and The Constitution of Liberty is #10 on the list.

And lucky you, because you can find a free condensed version of the Road to Serfdom here.

But wait! There’s more!

This is part 1 of a 3 part series produced for PBS called “The Command Heights: The Battle for the World Economy”. But the only part you need to watch to learn about Keynes and Hayek is part 1, which is 2 hours long.

This video is basically a history of the 20th century from the point of view of an economist. This is a must see for you young people who don’t know who Reagan and Thatcher were. These two leaders were the greatest defenders of freedom in the 20th century, along with Winston Churchill. And they’re both solid Christians, acting from a Christian and capitalist worldview that valued liberty, security and prosperity.

Today, Stephen Harper, the prime minister of Canada, best embodies the free-market, freedom-loving ideas of Hayek, while Barack Obama embodies the big-government, deficit-spending ideas of Keynes. Guess which economy is doing better?

Economist Thomas Sowell explains the housing boom and bust

My favorite living economist!

The links below will take you to streaming videos.

  • Part 1 (7 minutes) The economics of the housing boom.
  • Part 2 (6 minutes) The politics of the housing boom.
  • Part 3 (6 minutes) The origins and unique features of the housing bust.
  • Part 4 (6 minutes) The pitfalls of New Deal thinking.
  • Part 5 (9 minutes) The economic proposals of the Obama administration.

Thanks to ECM for notifying me about these videos!

About Thomas Sowell

Thomas Sowell has studied and taught economics, intellectual history, and social policy at institutions that include Cornell, UCLA, and Amherst. Now a senior fellow at the Hoover Institution, Sowell has published more than a dozen books. His latest book is The Housing Boom and Bust.

Full bio is here.