03.03.10
Wisdom from the Asker of the Swells
Little Tommy Friedman discovers — probably for the hundred or more time — LAX is a rotten place to be.
I was traveling via Los Angeles International Airport — LAX — last week. Walking through its faded, cramped domestic terminal, I got the feeling of a place that once thought of itself as modern but has had one too many face-lifts and simply can’t hide the wrinkles anymore. In some ways, LAX is us. We are the United States of Deferred Maintenance. China is the People’s Republic of Deferred Gratification. They save, invest and build. We spend, borrow and patch.
Whenever looking up at the intellectual giants in the sky I never have to strain to see little Tommy jetting about the country (or world) to interview some really big corporate swell. Some person whose boots are always to be licked, be they a wizard sipping strawberry lemonade with Friedman on a patio at Caltech or a king of the corporate world, for it is these people who are packed with wisdoms the rest of us shits cannot fathom or appreciate.
I had a chance last week to listen to Paul Otellini, the chief executive of Intel, the microchip maker and one of America’s crown jewel companies. Otellini was in Washington to talk about competitiveness at Brookings and the Aspen Institute. At a time when so much of our public policy discussion is dominated by health care and bailouts, my public service for the week is to share Mr. Otellini’s views on start-ups.
Yes, I think we can all agree, Intel is quite the start-up. And who better to hear such a man leader than more wonderful and smart people at Brookings or the Aspen Institute, places where the rest of us are properly forbidden to go.
You can guess what comes next.
The same old story: America costs too much compared to China, a real laugher if you’ve been reading any stories about the many medium-sized towns in America emptying out and collapsing as a result of our current national sickness.
What Americans aren’t is too expensive. It’s just damn inconvenient to use them after their wages have been compressed for two decades, because the Chinese are still cheaper and one doesn’t have to worry about pollution, really squandering energy, the occasional pesky union, or dumping hydrofluoric acid into the back lot in plain sight until the silica in the earth catches on fire.
Give us more R&D tax credit, from one of the most successful companies in the world, says the guy who runs it.
Would someone tamp a cigarette out in his eye?
If the government just boosted the research and development tax credit by 5 percent and lowered corporate taxes, argued Otellini, and we “started one or two more projects in companies around the country that made them more productive and more competitive, the government’s tax revenues are going to grow.??? With the generous research and development tax credits and lower corporate taxes they receive, Intel’s chief competitors in South Korea basically have “zero cost of money,??? said Otellini. Intel can compete against that with superior technology, but many other U.S. firms can’t.
We must eat our moldy peas “because smart, skilled labor is everywhere now. Intel can thrive today — not just survive, but thrive — and never hire another American.”
To change this, of course, wealthy corporations must receive more tax credits, government incentives and rewards. So while you are eating your crappy-tasting peas this year and the next, implies little Tommy, you must hope our government smartens up enough to realize it must give much more to those who have everything before it trickles down to those of us grubbing around in the dirt.