Obama’s economic advisers not bullish on America these days

posted at 2:20 pm on May 23, 2011 by Ed Morrissey

Earlier this year, Barack Obama formed a new presidential advisory committee on jobs and competitiveness that the White House hoped would alleviate at least two critical problems for the administration.  First, after spending a year shoving ObamaCare down the throats of voters who clearly didn’t want it, Obama needed to re-establish that jobs had become a priority again.  Second, and only slightly less important, Obama had to bolster the private-sector bona fides for his administration, which almost entirely lacked any such experience.

Obama invited the heads of several American companies to join his panel, and they’re probably delighted with the access.  But as Bloomberg discovered, it may not be making them any more confident of Obama’s economic policies:

Seven publicly traded U.S. corporations represented on President Barack Obama’s advisory council for jobs and competitiveness — including General Electric Co. (GE) andIntel Corp. (INTC) — have devoted a growing pool of their non-U.S. earnings to investments in other countries.

As a group, multinational companies with current or former chief executive officers on Obama’s jobs council have, over the past four years, almost doubled the cumulative amounts they’ve reinvested overseas, according to data compiled by Bloomberg.

By doing so, companies may be able to take advantage of faster-growing markets or lower production costs, and they can defer U.S. income taxes on profits from overseas sales. Underscoring the difference between corporate interests and the national interest, they’re also investing money elsewhere that could be helping the U.S. economy, said former U.S. Labor Secretary Robert Reich.

“That’s a signal that they are betting less on America,” Reich said. “We’ve got to understand there’s a fundamental difference between the competitiveness of these companies and the competitiveness of America and American workers.”

In 2010, the corporations represented on Obama’s council permanently reinvested $197 billion in overseas profit.  That’s close to double the figure from 2006.   The companies kept the money offshore during the Great Recession, and seem pretty unenthusiastic about investing at home now despite Obama’s claim of recovery in the US.

This could change, of course, now that Obama has a panel of advisers that can explain how taxes and increased regulation impact investment decisions in the real world.  That would require Obama to actually take their advice, though, rather than operate as political cover for a continued push for Obamanomics.  We saw with the debt commission how seriously Obama takes advice from his own blue-ribbon panels, and there’s no reason to believe that this administration’s attitudes toward the private sector have changed in the slightest.

Keep your eyes focused on the future investment decisions of these advisers.  If they’re not buying Obamanomics, there’s no reason for us to buy it, either.


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I swear I read that headline “Obama’s economic advisers not bullsh*t on America these days.”

Was going to have to take issue…

somewhatconcerned on May 23, 2011 at 2:22 PM

Keep your eyes focused on the future investment decisions of these advisers. If they’re not buying Obamanomics, there’s no reason for us to buy it, either.

Yup…

OmahaConservative on May 23, 2011 at 2:22 PM

By doing so, companies may be able to take advantage of faster-growing markets or lower production costs, and they can defer U.S. income taxes on profits from overseas sales.

LOL.

Success!

lorien1973 on May 23, 2011 at 2:23 PM

…have devoted a growing pool of their non-U.S. earnings to investments in other countries.

On the bright side, there are some sharp guys on the council.

Vashta.Nerada on May 23, 2011 at 2:23 PM

Slight OT: obama says Irish overcame occupation.
Facepalm of the day. Maybe America can rid itself of his occupation of WH in 2012

ConservativePartyNow on May 23, 2011 at 2:24 PM

It’s because of the stupid taxation of foreign profits–i.e. double taxation. We shoot ourselves in the foot at every turn.

andy85719 on May 23, 2011 at 2:24 PM

Anyone who’s run a lemonade stand can figure out Obama is a disaster for the economy.

angryed on May 23, 2011 at 2:26 PM

Obama’s economic advisers not bullish on America

Kinda like America feels about them right now.

littleguy on May 23, 2011 at 2:26 PM

Not to worry.

Little Timmy Geithner and his little hobbit buddies will sprinkle some magic fairy dust over the land and all will be sunshine and roses.

Hope we change.

hillbillyjim on May 23, 2011 at 2:29 PM

Agree Ed, can’t see dear actually take the advice of any of his commissions

cmsinaz on May 23, 2011 at 2:29 PM

Slight OT: obama says Irish overcame occupation.
Facepalm of the day. Maybe America can rid itself of his occupation of WH in 2012

ConservativePartyNow on May 23, 2011 at 2:24 PM

I’m still laughing my a** off on how he is “seeking his Irish roots”.

Shouldn’t he be looking for his roots about 4,500 miles further south from where he is right now? I do believe that is the distance between Ireland and Kenya.

pilamaye on May 23, 2011 at 2:30 PM

Anyone who’s run a lemonade stand can figure out Obama is a disaster for the economy.

angryed on May 23, 2011 at 2:26 PM

Well, that rules out almost every Democrat in the country.

Doughboy on May 23, 2011 at 2:30 PM

Another in a strig of recovery summers.
They should be bullish with rock bottom interest rates. If they stopped choking other factors, we would have a boom.

seven on May 23, 2011 at 2:33 PM

Underscoring the difference between corporate interests and the national interest, they’re also investing money elsewhere that could be helping the U.S. economy, said former U.S. Labor Secretary Robert Reich.

Ask yourself why, libtard….

ladyingray on May 23, 2011 at 2:35 PM

pilamaye on May 23, 2011 at 2:30 PM

His mom may have some Irish blood. Many midwesterners do.

alwaysfiredup on May 23, 2011 at 2:36 PM

Odds are, his great great etc. grandad most likely had a very different view of “negros” than Obama’s Irish cousins do today.

Thankfully, I’m Scottish.

BobMbx on May 23, 2011 at 2:36 PM

Obamanomics – working as planned.

Count it!

Rebar on May 23, 2011 at 2:37 PM

The only blood that concerns me is his Commie blood.

adamsmith on May 23, 2011 at 2:38 PM

pilamaye on May 23, 2011 at 2:30 PM

What he is doing reminds me so much of the movie, MatchMaker

ConservativePartyNow on May 23, 2011 at 2:40 PM

Are the advisors Mao, Stalin, and Trotsky?

Oil Can on May 23, 2011 at 2:43 PM

This could change, of course, now that Obama has a panel of advisers that can explain how taxes and increased regulation impact investment decisions in the real world.

1) The fact that we have someone in his position who doesn’t understand this is appalling although many of us knew he is an economic illiterate prior to his election.

2) There is no indication that he will understand the problem, and it’s more likely that he doesn’t care.

As long as this dunce can run his mouth, do his grand tour of the world on taxpayer money, golf and go on vacations he couldn’t care less about the country and its citizens.

BTW, has he ever visited his relatives in Kansas? I suppose it’s more entertaining to visit Ireland on this ridiculous charade than stepping a toe in the American Heartland.

Cody1991 on May 23, 2011 at 2:45 PM

“That’s a signal that they are betting less on America,” Reich said. “We’ve got to understand there’s a fundamental difference between the competitiveness of these companies and the competitiveness of America and American workers.”

This is something the Federal Labor Relations Board needs to work on ASAP. No reason they can’t just make that sort of activity illegal. Isn’t that how it’s done nowdays? Closed shop all the way. Heavy tariffs on imports. CardCheck.

a capella on May 23, 2011 at 2:53 PM

I mean, not only does he have no clue on how to run a successful enterprise…he doesn’t believe in profit anyways. Unless it’s his own, of course.

search4truth on May 23, 2011 at 2:57 PM

There is nothing he or his Democrats have done or plan to do that will improve the economy or the debt. He’s used up the whole can of BlameBush and spent so much more money than Bush it doesn’t even make sense now if it ever did. He wants to raise a billion dollars to buy the election if he can by trying to get everyone to look at anything but at his record. Unfortunately, people are living in his record and can’t escape it.

cartooner on May 23, 2011 at 3:06 PM

Well hopefully they’re advising Obama’s little girls not to sell rabbits for a profit.
Over $500/yr in rabbit sales is obviously illegal!

Badger40 on May 23, 2011 at 3:06 PM

My husband had a campout with other dads and daughters this weekend. One of the dads owns an Italien restaurant in a strip mall. He said because of ObamaCare he has to change his employee structure so that he has two part-time workers instead of one full time past a certain number of full time employees. Also, it is cheaper for him to buy pre-shredded cheese than have an employee grate it due to the cost of the employees and their benefits. Anecdotal evidence that Obama economics is NOT good for small business. Bet he doesn’t listen to too much advice from small business owners on his blue ribbon council.

txmomof6 on May 23, 2011 at 3:07 PM

they’re also investing money elsewhere that could be helping the U.S. economy, said former U.S. Labor Secretary Robert Reich.
Ask yourself why, libtard….

ladyingray on May 23, 2011 at 2:35 PM

Sounds like Reich needs to get Gestapo on these people.
WTH is wrong with them, not investing in America?!

Badger40 on May 23, 2011 at 3:07 PM

Obama and Irish “roots” make sense when you think about it. We all know he isn’t a giant among world leaders…too bad the Irish government confiscated his pot of gold.

cartooner on May 23, 2011 at 3:08 PM

Bet he doesn’t listen to too much advice from small business owners on his blue ribbon council.

txmomof6 on May 23, 2011 at 3:07 PM

Big business cozying up to the Feds in order to get rid of mom & pop competition & help keep their stranglehold on American consumers.
Especially those damned consumers wanting to buy raw milk & rabbits!

Badger40 on May 23, 2011 at 3:09 PM

“…said former U.S. Labor Secretary Robert Reich”

Why not try more social engineering…
… it seems to work every time!

/

Seven Percent Solution on May 23, 2011 at 3:11 PM

Obama needs to just issue a mandate or executive order for US business to do all their production and operation here in the US, then raise corporate taxes massively. That will solve two problems right off the bat. It will obviously fix the economy, then with all the extra tax money, pay off the debt and eliminate defecit spending.
Simple right?

Koa on May 23, 2011 at 3:11 PM

Simple right?

Koa on May 23, 2011 at 3:11 PM

What a great idea!

Badger40 on May 23, 2011 at 3:14 PM

I had no idea that Ireland was a Muslim country…

PatriotRider on May 23, 2011 at 3:26 PM

I had no idea that Ireland was a Muslim country…

PatriotRider on May 23, 2011 at 3:26 PM

LOL!
Gotta get back in touch with his white roots.
Bcs there’s not enough of the black vote to sail him to victory.

Badger40 on May 23, 2011 at 3:29 PM

On Drudge.. “There’s Nobody More Irish than Barack Obama”. Link to the article out of Britain; it is brutal.

Key West Reader on May 23, 2011 at 3:32 PM

Intel (INTC) has done about everything possible to invest in plants outside California, where the headquarters is located.

J_Crater on May 23, 2011 at 3:33 PM

As a group, multinational companies with current or former chief executive officers on Obama’s jobs council have, over the past four years, almost doubled the cumulative amounts they’ve reinvested overseas, according to data compiled by Bloomberg.

You might point out that this isn’t a new trend but one that started under Clinton and GW Bush. It reached critical mass under George Bush, leading to insignificant new job creation during the previous administration. It’s no surprise that US workers can’t compete with $1.50 wages in China. What’s more disturbing is that US workers can’t compete with workers in Germany, where unemployment is lower although government and (esp. environmental) regulations are far stricter.

It’s time for Americans to stop blaming their politicians and take collective and personal responsibility for the fact that our high schools graduate far too many third rate students and many Americans lack the right education and skill set, forcing high growth sectors like technology to hire extensively from India and China.

bayam on May 23, 2011 at 4:10 PM

I’d love to see a side by side of what these advisors said prior to endorsing the stimulus, where they said we would be in 2011 upon passing the stimulus, and what these same advisors are saying now.

Obama can be fired in 2012, these advisors, if they are the same guys/gals who pushed for the stimulus, should be fired NOW.

Angry Dumbo on May 23, 2011 at 4:19 PM

Underscoring the difference between corporate interests and the national interest, they’re also investing money elsewhere that could be helping the U.S. economy, said former U.S. Labor Secretary Robert Reich.

“That’s a signal that they are betting less on America,” Reich said. “We’ve got to understand there’s a fundamental difference between the competitiveness of these companies and the competitiveness of America and American workers.”

.
Robert Reich continues the narrative of greedy, obstructionist capitalists thinking of themselves first and America second when Reich could just as well have admitted that the Ø administration knows bupkus about business operations and tax strategy. I guess he thinks that just because our currency is somewhat greenish in color that repatriating corporate cash represents a “green economy.” No one, apparently, can get these numbskulls to reduce business regulation, fees, and tax burdens for fear that they may have to admit that government is the problem and not the solution.
.
DORKS!

ExpressoBold on May 23, 2011 at 4:41 PM

Barry only appoints commissions in order to vote PRESENT! Window dressing only.

GarandFan on May 23, 2011 at 4:47 PM

On Drudge.. “There’s Nobody More Irish than Barack Obama”. [...]
Key West Reader on May 23, 2011 at 3:32 PM

.
It’s a wonder his last name wasn’t spelled O’Bama somewhere in the article. I found the following somewhat amusing:

“My name is Barack Obama, of the Moneygall Obamas.”

.
What does a “world citizen” do after being bumped from the presidency of the USA?

ExpressoBold on May 23, 2011 at 4:57 PM

Here’s something to think about. There are those in America that strongly believe Obama is purposely trying to destroy the American economy. There are Obama supporters that feel very strongly that he is NOT trying to destroy the American economy. So how can we know what is true? Well just look at who he depends on for economic advice: Jeffrey Immelt. The man who singlehandedly took General Electric from one of the greatest companies to almost bankruptcy. Enough said.

afotia on May 23, 2011 at 5:43 PM

They’ve thrown around a few TRILLION to almost no measurable effect. Their bag of tricks is empty – spending and inflating was the only one anyway, just presented in different ways. They have no earthly idea what to do now except wait and hope things get better.

I had to laugh the other day when Timmy G said if we don’t raise the debt limit, we could have a double dip recession. Right you are, T-bone – and the sun will come up tomorrow, too. It’s a lock. Of course the sun and the double dip will come even if we DO pass the limit hike, but nice try to set up a fall guy for your mess, dude.

Adjoran on May 23, 2011 at 11:21 PM