Intel CEO: U.S. Faces Looming Tech Decline

[HardOCP News]

Intel CEO Paul Otellini, speaking at the Technology Policy Institute's Aspen Forum, had a lot to say about the current shape of the industry and his outlook wasn’t a cheerful one.

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."

 

[Unexploded]

This is rich, coming from them.

http://www.faceintel.com/

 

[TechLarry]

We're already at this point.

Until we start blocking the export of labor, we will continue to die off.

 

[Parmenides]

Probably right. You target big corporations, they just dodge the bullet. The little guy always gets hurt in the end.

 

[heatlesssun]

So give us everything we want or we'll pack up and go elsewhere. And when they are no jobs in the West who is going to buy i7-980x CPUs?

 

[computerpro3]

So give us everything we want or we'll pack up and go elsewhere. And when they are no jobs in the West who is going to buy i7-980x CPUs?

The newly enriched foreign citizens, which benefited from the money that Intel injected into their newly booming economies.

Otellini is 110% correct.

 

[wtiger]

Our trade laws need to be seriously scrutinized. Outsourcing jobs and entire industries so a few people at the top can get stupid rich is just wrong.

 

[bacon]

This is total BS. I own a business, so I can speak with some real world experience. American companies can not compete with foreign companies that pay a fraction of what US wages are.

If there were no taxes, no EPA, no government regulation at all it wouldn't make that much a difference. The cost of living would have to drop by at least 80% for US workers to be able to survive on wages that companies like Intel pay in other countries.

Our founding fathers knew that to protect American jobs they had to enforce tariffs, yet our current way of thinking and legislation like NAFTA disagree.

We have outsourced our nations true wealth so big corporations could make more profits. If they had to pay to import these cheap goods from China and Mexico we would see a decline in our industries leaving.

 

[dr.stevil]

We're already at this point.

Until we start blocking the export of labor, we will continue to die off.

pretty much... or at the very least, stop incentivising companies to setup shop outside of the US.

Between bureaucratic red tape, ever increasing government regulations, insane taxation and cynacism by the general public, it's not surprising to see companies outsourcing or moving to other countries. It's more of a burden than an advantage to do business here these days.

 

[LeninGHOLA]

Nice knowing ya, Intel.

 

[Etherton]

We have outsourced our nations true wealth so big corporations could make more profits. If they had to pay to import these cheap goods from China and Mexico we would see a decline in our industries leaving.

If by We you mean Politicains then yes you are correct Sir...

 

[wtiger]

He's right about one thing the Tax laws in the US are totally screwed. I'm definetly a big advocate of a national sales tax. We already pay all the taxes on the finished goods anyway. Just put a 15 - 20% tax on all finished goods and burn the tax code. Then you can all but eliminate the IRS, for all but refunding some of the money to the lowest wage earners, and cut hundreds of billions in costs every year in trying to comply with it while keeping all the money you legally can. It's very business friendly, no more loopholes, an automatic tax on all imported goods, an automatic advantage for all exported goods, etc.

 

[heatlesssun]

The newly enriched foreign citizens, which benefited from the money that Intel injected into their newly booming economies.

Otellini is 110% correct.

I didn't say he didn't have a point, but the newly emerging economies have a LONG way to go before they'd be able to support Intel's pricing and profits if Western economies stagnate. And if Western economies falter too badly where will all of those exports go?

You can't have it both ways, otherwise Western economies would already be dead.

 

[Monkey God]

Cant imagine why. With education costs skyrocketing, job outlooks declining, and everyone and their brother outsourcing, why bother?

 

[heatlesssun]

If there were no taxes, no EPA, no government regulation at all it wouldn't make that much a difference. The cost of living would have to drop by at least 80% for US workers to be able to survive on wages that companies like Intel pay in other countries.

EXACTLY! But he can't go around and say "Hey US citizens. You can keep your job if you want to live in poverty." He knows he can't go around saying that while Intel is making record profits, so like everyone else these days, just blame the federal government.

 

[heatlesssun]

Cant imagine why. With education costs skyrocketing, job outlooks declining, and everyone and their brother outsourcing, why bother?

That's why there are these things called faith and hope. The days of a man will always be short and troubled. We always think that today is the worst of times, never mindful of the past and always fearful of the future. This is human nature and it is something that will consume a person without faith and hope.

 

[MittWaffen]

Of course this is what happens, Government isnt for the people anymore; more or less big companies toss a few kickbacks to politicians and thus they keep pushing "for the rich, elite" policy and when enough politicians push it eventually it becomes reality; of even if its pushed long enough.

American is so messed up with every policy, I think the best way to fix it is COMPLETE government reform. There are tens of thousands of laws that screw all of us over, they havent been kept in check and now were feeling the pitch more and more.

 

[nutzo]

He's right about one thing the Tax laws in the US are totally screwed. I'm definetly a big advocate of a national sales tax. We already pay all the taxes on the finished goods anyway. Just put a 15 - 20% tax on all finished goods and burn the tax code. Then you can all but eliminate the IRS, for all but refunding some of the money to the lowest wage earners, and cut hundreds of billions in costs every year in trying to comply with it while keeping all the money you legally can. It's very business friendly, no more loopholes, an automatic tax on all imported goods, an automatic advantage for all exported goods, etc.

The rich and large companies will always be able to get around higher taxes, it's always the middle and upper middle class that end up getting burned.

A National Sales tax WOULD be the way to go, since it would capture the underground economy, however I disagree with the rebate for the poor. The biggest expenses for the poor are housing and food. Both of these should be exempted from the sales tax. The great think about a sales tax, is that even the drug dealer would be paying it when he buys his bling.

However, if they don't repeal the income tax first, then a sales tax would finish us off.

We should also increase tariffs. We should look at the average tariff the given country charges US goods, and apply the same tariff to all goods comming from that country.

Finally, we need to cut government spending. While private companies have been laying off millions, Washington has been on a hiring spree.

 

[Valset]

The newly enriched foreign citizens, which benefited from the money that Intel injected into their newly booming economies.

Otellini is 110% correct.

this, as much as I don't like Intel's ethics what was said in that article and at that speech was dead on. The best nation on earth is too stupid to kick out its incompetent leaders. (does this qualify for an oxymoron?). people that we should be listening too (gates might be a ruthless and underhanded SOB but he was a damn smart one) go unheard. we are too dumb to kick out illegal immigrants but we invite people to be educated here and then kick them out? how about we send the illegals out and invite the educated ones to stay? I hate to say it but we deserve to fall on our faces here.

 

[martinmsj]

The way it works is the people at the top will move based on what makes them richer. Hell, tell them all to leave on the the way out tell "the American money stays here" and slam the door.

Until someone steps in they will always outsource to very cheap labor. As of right now, there is no incentive not to outsource. Every company I've been at has outsourced and for damn sure it is always to benefit the welfare of those up top who are the only ones comfortable during the process.

I've watched a company's worker force shrink as a large majority of its workforce is outsourced. One department was completely wiped out and now exclusively done abroad.

 

[wtiger]

The rich and large companies will always be able to get around higher taxes, it's always the middle and upper middle class that end up getting burned.

A National Sales tax WOULD be the way to go, since it would capture the underground economy, however I disagree with the rebate for the poor. The biggest expenses for the poor are housing and food. Both of these should be exempted from the sales tax. The great think about a sales tax, is that even the drug dealer would be paying it when he buys his bling.

However, if they don't repeal the income tax first, then a sales tax would finish us off.

We should also increase tariffs. We should look at the average tariff the given country charges US goods, and apply the same tariff to all goods comming from that country.

Finally, we need to cut government spending. While private companies have been laying off millions, Washington has been on a hiring spree.

I will agree the particulars need to be ironed out on exactly how to apply it and the government is way too big. The current tax system puts huge burdens on small and medium sized businesses. Not just the taxes themselves, but all the man hours required to comply with it.

 

[obs]

We're already at this point.

Until we start blocking the export of labor, we will continue to die off.

Stopping companies from hiring other people across some invisible line isn't going to help the economy.

 

[obs]

Holy crap, a bunch of people who clearly failed simple economics are in here. I mean, this isn't even controversial stuff among economists you guys have wrong (stop trading with people, increase tariffs, etc). Hell, go look at the effects of the Smoot–Hawley Tariff Act if you want to see what would happen.

 

[computerpro3]

The way it works is the people at the top will move based on what makes them richer.

You say that as if it's a bad thing. You do the same thing, hypocrite.

Hell, tell them all to leave on the the way out tell "the American money stays here" and slam the door.

Except you will have nobody to give you your paycheck so you can live in your little suburb and have your 2.5 kids and a dog. Plus, you won't have anybody left on Wall Street to blame for not achieving your life goals. That last point would cause a meltdown in America.

Until someone steps in they will always outsource to very cheap labor. As of right now, there is no incentive not to outsource.

Why shouldn't we? The market is king - people like you continue to buy products from companies that outsource customer service (and other labor). Why should it be the government's job to tell businesses how to operate - if you don't like it, start the change with yourself and simply stop supporting companies that outsource a large percentage of their labor.

Also, you fail to comprehend how outsourcing cheap manufacturing has saved you incomprehensable amounts of money. You guys act as if keeping 100% of money in America is a good thing, and fail to understand how investing overseas can and has strengthened our economy.

This is what I always hear from rednecks working in the rust belt. Newsflash - this is not 1920 anymore. Economies change. America has moved from a manufacturing based economy to a service economy. And I have pretty much zero sympathy for you if you're someone who's job got outsourced. You are the one that accepted the job with full knowledge of what the trends in business are. If you failed to adapt and reinvent yourself along with the economy, well, we always need garbage men and janitors to make the world go round.

Every company I've been at has outsourced and for damn sure it is always to benefit the welfare of those up top who are the only ones comfortable during the process.

You act as if c level executives get bonuses for outsourcing For most of these guys, outsourcing is necessary to keep the company alive due to overbearing and ridiculous taxes and regulations . Money talks, and if the government is taking away 40-60% of it, what else are they supposed to do? Business isn't charity, folks.

I've watched a company's worker force shrink as a large majority of its workforce is outsourced. One department was completely wiped out and now exclusively done abroad.

Yet I bet you're enjoying your benefits and insurance, which are paid for at the expense of those outsourced workers

 

[next-Jin]

It's not just the insane tax rate its a combination of minimum wage, tax codes and regulations. I'm surprised these companies are even still here in any capacity.

 

[computerpro3]

It's not just the insane tax rate its a combination of minimum wage, tax codes and regulations. I'm surprised these companies are even still here in any capacity.

Exactly. The sense of entitlement among the American worker is astounding.

 

[jkerr2]

Holy crap, a bunch of people who clearly failed simple economics are in here. I mean, this isn't even controversial stuff among economists you guys have wrong (stop trading with people, increase tariffs, etc). Hell, go look at the effects of the Smoot–Hawley Tariff Act if you want to see what would happen.

Thats because they went to far. They increased the tariffs to record levels. Just like there going to far importing things with no tariffs. Thats just as crazy in my book.
I don't know why Paul Otellini, is complaining. They partially to blame just as much as the government is.

 

[computerpro3]

If there were no taxes, no EPA, no government regulation at all it wouldn't make that much a difference. The cost of living would have to drop by at least 80% for US workers to be able to survive on wages that companies like Intel pay in other countries.

This right here shows that you should probably take some economics courses if you hope for your business to survive for much longer.

 

[obs]

Want to know what kills many, many more jobs than outsourcing? Technology. Would banning all robotics make us better or worse off?

 

[Parmenides]

that's factory work. We care less about that, then tech work.

 

[obs]

that's factory work. We care less about that, then tech work.

Clearly we need to ban more efficient software development models then.

From now on you can only program using C and a waterfall development model. Just think of all the jobs we'd create bug fixing

 

[xSnowmaNx]

We should also increase tariffs. We should look at the average tariff the given country charges US goods, and apply the same tariff to all goods comming from that country.

Historically, that hasn't always worked. Tariffs are analogous to taxes in the very similar way Otellini is talking about: If we increase tariffs on countries that maintain high tariffs on us or on products that we have a competitive advantage at, a possible consequence is that people raise their tariffs on us (therefore more expensive for us) or do business elsewhere with another economy (we don't get any products we need and we lose productivity by losing business).

Such a blanket approach isn't likely to provide a better way to "protect American jobs".

Holy crap, a bunch of people who clearly failed simple economics are in here. I mean, this isn't even controversial stuff among economists you guys have wrong (stop trading with people, increase tariffs, etc). Hell, go look at the effects of the Smoot–Hawley Tariff Act if you want to see what would happen.

Pretty much. While I tend not to accept many explanations provided in "economics" (it is just too big of a system with too many variables to make any meaningful claim on what caused what), I do find history to be quite interesting since many general points of interest are often mirrored across generations.

 

[Parmenides]

efficient? overseas work doesn't have much to do with efficiency. More about cheapness. The only efficientness is cost reduction. Communication barriers (and often quality of product) are less efficient.

Playing with tariffs is a game. You just have to play it smartly. Other countries play the game all the time.

 

[Unexploded]

EXACTLY! But he can't go around and say "Hey US citizens. You can keep your job if you want to live in poverty." He knows he can't go around saying that while Intel is making record profits, so like everyone else these days, just blame the federal government.

Hell, they've gone one further, can't remember who the company was that was doing it at the moment (maybe IBM?), but one of them was offering employees a chance to follow your job to India (along with the resulting cut in pay).

Might be an adventure if you were just a kid, but you better be damn sure you like it there, as it's close to a one way trip at what your pay would drop to.

 

[Unexploded]

Exactly. The sense of entitlement among the American worker is astounding.

I know, what them thinking they deserve safe working conditions, days off, and reasonable pay. Uppity bastards.

 

[1.1.2.3.5...]

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.

This!!!!...

 

[jimmyb]

This right here shows that you should probably take some economics courses if you hope for your business to survive for much longer.

I trust you covered the counter arguments in your PhD dissertation in economics and will be providing a link to it, so we too can be privy to your insights.

 

[Valset]

This!!!!...

actually I am pretty sure they knew it would not work from the start. it just fits there political agenda is all

 

[acidic]

With all our major manufacturing already outsourced and other tech jobs being outsourced, I'm curious what kind of jobs will be left in ten or twenty years. Are we all going to become Lawyers, Doctors or Bureacrats?

 

[computerpro3]

I know, what them thinking they deserve safe working conditions, days off, and reasonable pay. Uppity bastards.

Oh please, nice red herring. But go talk to GM about "reasonable pay" - oh wait, they want bankrupt partially because of the entitlement of the union workers.

I trust you covered the counter arguments in your PhD dissertation in economics and will be providing a link to it, so we too can be privy to your insights.

PhD? Please, this is economics 101 buddy. Anyone who has actually taken it can confirm that.