Paul Otellini, Intel CEO: The Stimulus Didn't Work (VIDEO)

Intel CEO Paul Otellini doesn't buy into the idea that the White House is anti-business, but he does believe the administration "just doesn't get it" when it comes to creating jobs.

Otellini, in an exclusive interview with CNN Money at the Intel Developers Forum in San Francisco on Tuesday, said the U.S. should not only forgo spending the second half of Obama's $787 billion stimulus package, but completely axe Obama's newly proposed $350 billion economic recovery plan.

"The decisions so far have not resulted in either job growth or increased confidence. When what you're doing isn't working, you rethink it and I think we need to rethink some plans," Otellini told CNN Money. "Swimming pools in Mississippi are not going to create lasting jobs," he added.

Companies can't invest because they don't know what their health care, energy or tax costs will be in the coming years, Otellini said.

Otellini insisted the U.S. business world needs more certainty, but most of all, he said, the administration needs to take the first major step in attracting foreign investment and increasing the flow of capital back into the United States by reducing corporate taxes. "To attract a global-scale set of investments, you need to have globally competitive infrastructure -- and tax rates," argued Otellini.

In short, Otellini said America faces a cost problem. "As a global businessman, particularly if you're not based in the U.S., why would you come here?" Otellini said.

Watch the interview with Intel's CEO Paul Otellini below:

Comments

[ChasG]

03:02 PM on 09/16/2010

Change I can believe in:

It’s commonly understood the economy in any administration’s first year is consequence of policies in force the previous year.  Change doesn't start on inauguration day-- takes time to pass legislation, put it into effect, then see any results. 

Federal Bureau of Labor and Statistics reports in Bush presidency’s final year 4.5 million jobs were lost, and in the first 11 months of the Obama presidency, while a large array of progressive legislation was being passed, including stimulus, another 4.5 million jobs were lost (Bush legacy). The report shows for this year through August employment has GROWN adding 1.5 million jobs. Not enough, but a definite trend reversal suggesting the “Keynesian experiment” of stimulus spending is beginning to work.  Expect a slow and bumpy ride back to full employment, but so far this year we’re adding jobs, not losing them.


Unemployment down from 10% at the beginning of this year to 9.6% as of end of August; not much improvement yet because young people add to the work force every year.  Also, unemployment stats don’t include people no longer collecting benefits, so when these people return to employment it has no effect on reported unemployment statistics.

Click or copy/paste direct link below:

http://www.bls.gov/web/empsit/cpseea3.pdf

http://www.bls.gov/web/empsit/cpseea3.pdf

[rebel9999]

09:32 AM on 09/16/2010

The stimulus didn't work? In other news, water is wet.

[zaggy]

07:35 PM on 09/15/2010

Shovel ready ?

[tacevad]

03:42 PM on 09/15/2010

isn't it so nice that all those saying the stimulus failed refuse to consider where the country would be without it?

[yliza]

03:24 PM on 09/15/2010

Republicans DO create jobs....for Chinese workers :p

[hypnotoad72]

12:26 PM on 09/15/2010

Hmmm,

He's basically saying Obama's admin (e.g. THE GOVERNMENT) needs to do more to create jobs.

Republicans on HP's forums say businesses create jobs and not government...

Which is curious, since Otellini seems to be... affiliated with Republicans: http://www.newsmeat.com/ceo_political_donations/Paul_Otellini.php

So, republicans, unify for us - does government do work to create jobs or do businesses? If it's government, then the moment government does something, I do not want to hear even a syllable from any republican saying "Obama is a socialist".

[jugglergal]

11:29 AM on 09/15/2010

I wonder if he is one of the Koch Brothers soldiers. They are Rich Christians who want to bring the monarchy to the US. A few overlords and the rest of us surfs. They have a campaign going on to downplay any progress made so far so we, dems and liberals feel demoralized and quit. To bad richees, we have had years of fighting to overcome your money and we aren't stopping now! Go back to your castle and leave the rest of us to our own country!

[Yank in France]

09:09 AM on 09/15/2010

Here is the link to the Bloomberg report on the UN commentary, I forgot to attach, in my above message:

http://www.bloomberg.com/news/2010-09-14/-deflationary-spiral-looms-as-consequence-of-premature-austerity-un-says.html

[Yank in France]

09:08 AM on 09/15/2010

Intel chief Paul Otellini claims that the stimulus spending didn't work, but unfortunately many business executives in the United States are infected with very rightwing views that are not based on economic theory but only on ideology.

He claims Congress should forego the entirety of Obama's remaining stimulus budget, but I just read a UN report that chastises Western European countries for following precisely the policies Otelini is promoting in the US.

"Premature fiscal austerity in Europe and the U.S. is pushing the global economy closer to a “deflationary spiral” that will choke consumption and leave millions of people without work, the United Nations said.

China, Germany and Japan need to boost domestic consumption while U.S. citizens must start consuming less to start fixing world economic imbalances, the UN said today in its annual Trade and Development report.

“A continuation of the expansionary fiscal stance is necessary to prevent a deflationary spiral and a further worsening of the employment situation,” the Geneva-based UN Conference on Trade and Development said in the 204-page report. “Not all countries can rely on exports to boost growth and employment. More than ever they need to give greater attention to strengthening domestic demand.”"

The report goes on to say that rescinding the stimulus measures represents a greater threat to the economy than budgetary expansion.

If we look at America's economic history, we see that the double-dip recession of 1937 was provoked by a reduction in govt spending!!

[Genep34]

09:40 AM on 09/15/2010

well said - Otellini is biased as a republican

[hypnotoad72]

12:28 PM on 09/15/2010

See my post above - I put in a link confirming that fact.

And more... maybe those around here who say "government should stay out of business" should listen to Otellini, since Otellini is basically saying government creates jobs. (We all know businesses do, but Otellini is just playing with politics - probably to get more entitlements that we, the taxpayers, inevitably pay for.)

[DXM]

08:51 AM on 09/15/2010

"...increasing the flow of capital back into the United States by reducing corporate taxes"

More BS totally unsupported by the facts. After all the tax breaks, write offs and tax loop holes are taken into account, the effective US corporate tax rate is the lowest in the industrialized world. In fact the majority of Fortune 500 companies effectively pay no Federal taxes at all and haven't in a decade or more. And despite all this, the economy tanked, capital is flowing out of the country and the number of jobs in the US has plummeted. In my mind lowering corporate taxes will (once again) do nothing for curing the ills in this nation's economy and just put even more money into the pockets of the rich at the expense of the middle class. Nice try!

[Windergard]

10:54 PM on 09/17/2010

So answer the fundamental question. If this is such a corporate haven, why are the companies leaving the country rather then coming here?

[Bob Hooker]

06:19 AM on 09/15/2010

Maybe he should worry a bit more about doing his own job and save Intel from AMD aggressive take over of that market.

[agathacallie]

03:25 AM on 09/15/2010

Intel employees have reduced by 20,000 since 2005. Dividends per common share have increased from $.32 to $.56. Were these American jobs?

http://www.intc.com/intelAR2009/business/financial/index.html

[agathacallie]

03:08 AM on 09/15/2010

"...the administration "just doesn't get it" when it comes to creating jobs." What the administration doesn't get is all the tax breaks in the world for this company or the likes of GE or Exxon will not create any new jobs for Americans. Reams of documentation prove that this company does not want to pay a decent wage to qualified people in this country, but it does expect tax handouts and its shareholders and execs do want to enjoy all the benefits of living in the US without contributing jobs and their fair share of taxes. This guy is merely on a propaganda mission. Why worry about illegal aliens using US resources when you have this type of grand scale abuse?

"One of the Dow 30 companies using offshore sites to reduce its U.S. taxes is Santa Clara, California-based Intel Corp., the world’s largest chipmaker." http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aWoQkk2WY1oc

[Rachael Marie]

02:06 AM on 09/15/2010

Yeah, and Ireland used to held up as the paragon of how corporate tax codes should be structured. "Do it like Ireland" they said and the jobs and capital investment would come back to the US in spades. Let's see, how is that working out for 'ol Ireland? Oh, not well you say? Devastated economy you say? The Celtic Tiger has been slain you say? Social unrest you say?

Go hump a bus Otellini.

[ThatBKChick]

01:44 AM on 09/15/2010

Of course it didn't work...you have been laying off more people and still out sourcing our jobs....Sick basturd! I wish these corporate crooks STHU!

[hypnotoad72]

12:30 PM on 09/15/2010

Agreed. All they do is play games and try to make scapegoats - either out of President Obama or the taxpaying working class.

Here's another CEO that likes to point fingers... and even make a threat (could a threat against a government official be deemed as a definition of "terrorism"?):
http://www.businessinsider.com/ballmer-threatens-obama-says-hell-move-jobs-overseas-2009-6

[ThatBKChick]

09:21 PM on 09/18/2010

Great link....I totally agree. The dems need to start talking about Corporate welfare they have been getting off the backs of the working class and poor.