Andy Grove Gets It - What it Takes to Create U.S. jobs

Former Intel CEO Andy Grove is not someone who comes to mind when calling for action on U.S. jobs. Under his watch, Intel displaced U.S. workers with foreign guest workers, labor arbitraged, underpaid salaries, age discriminated and offshore outsourced manufacturing and jobs in droves. Their corporate culture was so notoriously vile, they even had their own personal protester, warning anyone who would listen to not work at Intel.

What happened I have no idea but Andy Grove just wrote the most specific and dynamite article, How America Can Create Jobs. He actually knows how to create high paying jobs because at one time Intel on it's path to the world's dominant computer processor maker, actually did manufacture in the United States.

Friedman is wrong. Startups are a wonderful thing, but they cannot by themselves increase tech employment. Equally important is what comes after that mythical moment of creation in the garage, as technology goes from prototype to mass production. This is the phase where companies scale up. They work out design details, figure out how to make things affordably, build factories, and hire people by the thousands. Scaling is hard work but necessary to make innovation matter.

The scaling process is no longer happening in the U.S. And as long as that's the case, plowing capital into young companies that build their factories elsewhere will continue to yield a bad return in terms of American jobs.

The article has a series of slides and specific examples of Chinese industries of scale as well as how Silicon valley created hundreds of thousands of jobs by manufacturing, scaling up a business to large production....in the United States. Mr. Grove sees through the China syndrome, that nasty herd behavior buzz disease where those who are hip know you must offshore outsource every job overseas to be with the in crowd in Silicon valley.

I hope Congress and this administration is listening. It's possible someone with a conscience can help craft a host of tax incentives and penalties to get other large multinational corporations to see the light.

Maybe Andy Grove had an epiphany. Maybe he has regret. Maybe it dawned on him that those short term profit margin improvements by offshore outsourcing everything that isn't nailed down (and that too) is actually destroying the United States economy.

Whatever the reason, I'm grateful Andy Grove spoke out and asks:

What kind of a society are we going to have if it consists of highly paid people doing high-value-added work—and masses of unemployed?

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