Here in the WSJ the former CEO of Intel tries to educate legislators:

Companies outsource for two reasons. The first centers on the nature of the global economy. In today’s world, outsourcing can save companies money, reduce the time it takes to deliver products and services to customers, and provide access to skilled employees unavailable in the U.S. Outsourcing also allows companies to capitalize on incentives offered by foreign governments to attract investment. Outsourcing is here to stay for companies hoping to remain internationally competitive.

The second reason U.S. companies outsource is that our own government pursues policies that drive investment and job creation offshore: excessive taxes, needless regulations, lengthy permit processes, a decreasing supply of U.S. citizens with technical and engineering degrees, and a general governmental misunderstanding of how to support private-sector jobs. For example, taxing new U.S. corporate investment at 35% — when the world average is just over 18% — pushes U.S. companies to invest offshore to increase return to shareholders.

While the U.S. government takes this harmful approach, foreign governments comprehend as never before what it takes to attract businesses and allow them to thrive. Many learned invaluable free-market lessons from the U.S. Now those same lessons are being lost on our own leaders.

Of course the powers in Washington (and in places like California as well) don’t think this way. We hear that they just voted to repeal the law of cause and effect. Good luck with that.

This entry was posted on Saturday, October 2nd, 2010 at 2:32 am and is filed under business, China, Democrats, EU, Republicans. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.