Intel CEO Paul Otellini warned policy makers that if nothing changes, the US faces a huge tech decline because the U.S. legal environment has become so hostile that the next big thing will not be invented in the US, and jobs will not be created in the US. Otellini complained about taxes and stated that Washington doesn't understand what it takes to create jobs.
Take factories. "I can tell you definitively that it costs $1 billion more per factory for me to build, equip, and operate a semiconductor manufacturing facility in the United States," Otellini said.
The rub: Ninety percent of that additional cost of a $4 billion factory is not labor but the cost to comply with taxes and regulations that other nations don't impose. (Cypress Semiconductor CEO T.J. Rodgers elaborated on this in an interview with CNET, saying the problem is not higher U.S. wages but anti-business laws: "The killer factor in California for a manufacturer to create, say, a thousand blue-collar jobs is a hostile government that doesn't want you there and demonstrates it in thousands of ways.")