Tag Archives: Safety

Commentary

What caused Silicon Valley companies to outsource jobs?

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Article from the center-right Manhattan Institute.  (H/T ECM)

Excerpt:

Silicon Valley faces a serious threat, however: the fiscal and regulatory earthquakes rocking California, which verges on becoming a failed state. Measured by per-household state and local government spending, California ranks third-highest in the nation, behind Alaska and New York. The state government is trying desperately to squeeze money out of any profitable activity to meet the crippling costs. Further, California continues to impose onerous regulations on the private sector. High taxes and stifling regulations give companies a strong incentive to move elsewhere. In this increasingly business-hostile environment, will Silicon Valley’s unique entrepreneurial spirit survive?

[…]California has piled every imaginable burden on businesses. Minimum-wage laws are among the highest in the country, and health and safety regulations are among the strictest; cities like San Francisco and San Jose require businesses to offer employees health insurance; labor laws are extremely union-friendly; environmental policies drive up energy costs—and on and on. Small firms have the toughest time in this business-toxic climate. A recent study by Sanjay Varshney, dean of the College of Business Administration at California State University in Sacramento, estimates that the cost of state regulations in 2007 reached an average of $134,122 per small business—the equivalent of one job lost per company. And it’s not just the small guys: Google, which uses colossal amounts of electricity, is building its data centers in other states or abroad, where energy is much cheaper.

Hank Nothhaft is the CEO of Tessera, a firm in the field of semiconductor miniaturization. He shows me the vacant office parks and empty lots around his company’s San Jose factory. Silicon Valley, he observes, lost more than a quarter of its computer, microchip, and communications-equipment manufacturing jobs from 2001 to 2008, and Tessera proved no exception. The company has kept some of its assembly lines and industrial operations going here, but it now produces two-thirds of its nanotechnology chips in less expensive North Carolina and in various countries overseas, with China becoming the latest contender for a production facility. Just back from a trip there, Nothhaft says that he has been offered terms he “cannot decently refuse.” Using the Internet and videoconferencing, he can manage Tessera factories around the globe without leaving his San Jose office. “The business environment is becoming awful in California,” Nothhaft complains—just by moving his headquarters to Nevada, he’d save $5 million a year in taxes.

I quoted the interesting part of the article above, the rest is just more details about the past, present and future of Silicon Valley.

Videos

Milton Friedman shows why capitalism is the economic view of grown-ups

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Here’s one video:

And another:

Socialism only makes sense when you don’t think things through. There is a finite number of things in the universe. If you want to fix one situation, you’re going to break something else. The only question to decide, then, is who should decide how money is spent. Is it the government who decides? Or individuals? Which party is better at choosing? Which party has more to gain or lose from good and bad choices? Which party has the incentive to make the right choice, because they earned the money, and is responsible for the result of spending it one way or another?

The real world is not perfect. There are risks and trade-offs everywhere in life.

(H/T Laura at Pursuing Holiness)

Commentary

Is Toyota the victim of persecution by the mainstream media?

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From National Review. (H/T ECM)

Excerpt:

For those who’ve been setting up the Japanese automaker as the latest symbol of heartless capitalism, it’s been a bewildering few days. On Wednesday the media jumped hard for the story of a man who frantically called 911 while his Prius ran away on a San Diego freeway (outstandingly gullible CBS News coverage here). Before long observers had begun poking holes in the story, and colorful details on the man’s earlier doings have been emerging all weekend. On Thursday, meanwhile, the New York Times — whose news columns had helped set the tone for the panic with accusatory coverage — ran what was actually a surprisingly good op-ed advancing the possibility that most of the Toyota cases will turn out to be the result of . . . driver error.

[…]With Audis, and in other acceleration scares affecting GM and other companies, we know that older drivers are not the only group disproportionately likely to be involved in a runaway. Others include drivers who are short in stature, who are unfamiliar with the vehicle (parking-lot attendants, new buyers), and who are taking off from a stopped position or backing up. Publicly available reports do not yet indicate whether the Toyota crashes fit all of these patterns… however… the L.A. Times compilation of fatal accidents seems to contain a striking number of drivers who were immigrants.

[…]The widely recalled low point of the Audi controversy came when CBS’s 60 Minutes ran a grossly unfair hatchet job on the automaker, complete with a bogus simulation rigged up by an expert witness working with lawyers suing Audi. This time around, it was the turn of ABC’s Brian Ross, who used, yes, an expert witness hired by litigators suing Toyota to rig up a supposed simulation of electronic failure. (Toyota promptly showed that you could get the same silly, artificial result by hooking up other automakers’ vehicles in the same way.) Matt Hardigree of Jalopnik called the results “ridiculous” and a “hoax,” while Gawker — noticing some stealthily falsified footage of tachometer results — headlined its coverage “How ABC News’ Brian Ross Staged His Toyota Death Ride” and “ABC News’ Toyota Test Fiasco.”

My view is that this is being blown out of all proportion like other media-induced scares. Fear sells newspapers.