Comments on: A Protectionist Rant from Intel Legend Andy Grove http://contraryinvesting.com/economic-outlook/a-protectionist-rant-from-intel-legend-andy-grove/ Investing and Trading News, with a Contrarian, Sarcastic Twist! Tue, 31 Jan 2012 08:31:57 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Paul S http://contraryinvesting.com/economic-outlook/a-protectionist-rant-from-intel-legend-andy-grove/comment-page-1/#comment-534 Paul S Mon, 26 Jul 2010 17:29:03 +0000 http://contraryinvesting.com/?p=1516#comment-534 The carrot that lured much of the "offshoring" was a temporary tax holiday. As mentioned above, Ireland, Peurto Rico, Singapore, and many other countries offered a 10 year tax-free offer . . . the offer would eventually expire, and the corporations would often shift their manufacturing (and subsequent profit recognition) onto another location. The carrot that lured much of the “offshoring” was a temporary tax holiday. As mentioned above, Ireland, Peurto Rico, Singapore, and many other countries offered a 10 year tax-free offer . . . the offer would eventually expire, and the corporations would often shift their manufacturing (and subsequent profit recognition) onto another location.

]]> By: Brett http://contraryinvesting.com/economic-outlook/a-protectionist-rant-from-intel-legend-andy-grove/comment-page-1/#comment-531 Brett Sun, 25 Jul 2010 21:38:19 +0000 http://contraryinvesting.com/?p=1516#comment-531 Thanks Paul for the comment and insight into the role that taxes play in these locations being chosen. I'd imagine the US still does not compare favorably on this front! Thanks Paul for the comment and insight into the role that taxes play in these locations being chosen. I’d imagine the US still does not compare favorably on this front!

]]> By: Paul S http://contraryinvesting.com/economic-outlook/a-protectionist-rant-from-intel-legend-andy-grove/comment-page-1/#comment-528 Paul S Sun, 25 Jul 2010 14:36:41 +0000 http://contraryinvesting.com/?p=1516#comment-528 I worked in choosing manufacturing locations through the 80's for a couple of Fortune 500 firms, one of which was Intel. Throughout the '80's most of the Fortune 500 moved manufacturing offshore (including Intel). In our in-depth financial analysis we consistently recommended these decisions, and the overwhelming driver was taxation. Corporations could realize earnings tax free in Singapore, Puerto Rico, Ireland, and elsewhere . . . labor, shipping costs, and other cost elements weren't the deciding factor . . . taxes were. I worked in choosing manufacturing locations through the 80’s for a couple of Fortune 500 firms, one of which was Intel. Throughout the ’80’s most of the Fortune 500 moved manufacturing offshore (including Intel). In our in-depth financial analysis we consistently recommended these decisions, and the overwhelming driver was taxation. Corporations could realize earnings tax free in Singapore, Puerto Rico, Ireland, and elsewhere . . . labor, shipping costs, and other cost elements weren’t the deciding factor . . . taxes were.

]]> By: Andy Grove on US Job Creation: Protect Manufacturing Jobs — The … | Manufacturing Report http://contraryinvesting.com/economic-outlook/a-protectionist-rant-from-intel-legend-andy-grove/comment-page-1/#comment-507 Andy Grove on US Job Creation: Protect Manufacturing Jobs — The … | Manufacturing Report Wed, 21 Jul 2010 21:09:42 +0000 http://contraryinvesting.com/?p=1516#comment-507 [...] Read the original here: Andy Grove on US Job Creation: Protect Manufacturing Jobs — The … [...] [...] Read the original here: Andy Grove on US Job Creation: Protect Manufacturing Jobs — The … [...]

]]> By: Brett http://contraryinvesting.com/economic-outlook/a-protectionist-rant-from-intel-legend-andy-grove/comment-page-1/#comment-505 Brett Wed, 21 Jul 2010 18:46:40 +0000 http://contraryinvesting.com/?p=1516#comment-505 Thanks Carson. It seems like Grove is not a believer in the "we think, they sweat" economic maxim that I believe Andy Kessler coined a few years back. Definitely tough to distinguish between the free trade benefits and the leverage accrued during our massive debt bender...perhaps our bender was partially enabled by the Chinese cranking out cheap crap for us to buy. In any case, agree that the end result is PAIN. Thanks Carson. It seems like Grove is not a believer in the “we think, they sweat” economic maxim that I believe Andy Kessler coined a few years back.

Definitely tough to distinguish between the free trade benefits and the leverage accrued during our massive debt bender…perhaps our bender was partially enabled by the Chinese cranking out cheap crap for us to buy. In any case, agree that the end result is PAIN.

]]> By: Carson Gross http://contraryinvesting.com/economic-outlook/a-protectionist-rant-from-intel-legend-andy-grove/comment-page-1/#comment-501 Carson Gross Tue, 20 Jul 2010 19:38:26 +0000 http://contraryinvesting.com/?p=1516#comment-501 I can see Andy's point. While I certainly regard myself as a free market guy, the asian mercantilist approach has created a huge, long lived distortion in global markets. While I do believe there has been a net increase in well-being thanks to free trade with China, I can't tell if the benefits that the U.S. accrued are separable from the massive increase in household leverage here, and I'm pretty sure that that leverage is going to cause a world of pain for us. Cheers, Carson I can see Andy’s point. While I certainly regard myself as a free market guy, the asian mercantilist approach has created a huge, long lived distortion in global markets. While I do believe there has been a net increase in well-being thanks to free trade with China, I can’t tell if the benefits that the U.S. accrued are separable from the massive increase in household leverage here, and I’m pretty sure that that leverage is going to cause a world of pain for us.

Cheers,
Carson

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