Wednesday, October 3, 2012

Intel CEO Otellini: California Is on a Downhill Slide

Yes.  It's that bad.
“Oh, God,” Otellini said, “I was born and raised here. I’m fifth or sixth generation. It’s one of the nicest pieces of real estate on the planet, and we’re so close to screwing it up, it’s pathetic. I’d like to be bullish, but I worry that we have to hit the abyss before we can fix things, and I worry that the abyss will be more like Greece.”

Intel, Otellini continued, has not added a job in California in 10 or 12 years and closed its last factory in the state around six years ago.

“Employees have a hard time buying houses, and they have complaints about the schools,” he said. They’re drawn to California despite the state’s high housing costs, heavy traffic and high tax rates because of “the allure of Silicon Valley, but then they get married and have kids, and they’re begging us, ‘Can you transfer me to New Mexico or Arizona?’ We’re not an outlier here.”

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