Inquiring minds are reading what Intel Chief Executive Officer Paul Otellini has to say at a dinner for the Technology Policy Institute’s Aspen Forum. And his remarks were not endearing to the Obama administration:
ASPEN, Colo.–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.”
Otellini’s remarks were dark. Very dark regarding the future. His comments covered many areas:
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.”
He didn’t stop there. He spoke about how the Democrats and their Keynesian economic experiment, tax policy, immigration policy, and much more. But the most important might have been:
“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.)
Chris Marangi, associate portfolio manager at Gamco Investors in Rye, N.Y., said Tuesday: “Capital is agnostic. It doesn’t have a religion. It doesn’t have a philosophy. It goes where it finds the highest returns.” The problem, Marangi said, is that many other “countries have a more friendly regulatory regime than we do.”
Beware America. Beware. Decisions are being made that can not be undone quickly.
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