Some aspects of the real world are counterintuitive. By that, I mean things that seem like they should do one thing and then do another. There’s the idea of turning into a skid or large planes staying in the air or how bumblebees fly. These are counterintuitive in observation.
When someone does something counterintuitive, you have to conclude that they are either very smart and have recognized a relationship of which you are unaware or they are rather clueless and have made a bad decision.
President Obama has yet to display any great depth of knowledge about history, economics, or foreign policy. I am not saying that I’m smarter than he is, but he certainly hasn’t convinced me that he’s far smarter than I am. So, it comes to pass that his actions seem counterintuitive to me and, additionally, nobody has been able to explain what it is that I’m missing such that he’s justified in his decisions. In fact, all the evidence points to him either making bad decisions or making decisions for reasons other than what he’s stated. I’ll be generous and just assume he’s performing poorly rather than suggesting he’s deceptive. Although, I suppose that wouldn’t be unusual for a politician.
Next on today’s list of evidence is his effort to impose higher taxes on the foreign profits of US companies. By Obama’s argument, this would prevent companies from sending jobs overseas. In fact, many CEOs are complaining that it would make more sense for companies to move their entire operations overseas, instead.
This Bloomberg article by Ryan J. Donmoyer gives the details. I’ve never been a fan of Steve Ballmer, CEO of Microsoft, but he is in a position that requires he make a profit for his shareholders. Here’s his take:
“It makes U.S. jobs more expensive,” Ballmer said in an interview. “We’re better off taking lots of people and moving them out of the U.S. as opposed to keeping them inside the U.S.”
John Thompson, the Chairman of Symantec Corp. summarizes exactly why companies would want to flee the US.
Thompson called the Obama proposals “counterintuitive” to the administration’s other stated goals of fostering an innovation-oriented economy.
“It is a little bit ironic that most of our most significant trading partners and partners globally have taken the tack that they’ll reduce corporate tax rates to stimulate economic growth and not raise corporate tax rates,” Thompson said.
Once again, it is impossible to tax yourself into prosperity. It’s more than ironic, it’s stupid. I fear that this is an initiative driven by talking points from the left that have not been critically evaluated. Companies will not stand around and have their profits confiscated without doing something to adapt. It’s the unexpected adaptation that will hurt the economy in the long run.