Light Reading

W Does Cisco

Craig Matsumoto
News Analysis
Craig Matsumoto
4/21/2006
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SAN JOSE -- Don't panic if the Cisco Systems Inc. (Nasdaq: CSCO) home base seems deserted today. It's not a plague or alien invasion.

Well, not exactly. It's a visit from the heads of state -- President George W. Bush and California Governor Arnold Schwarzenegger!

Technically, employees aren't being chased out, but Cisco is suggesting they consider telecommuting today "due to the expected parking lot and road closures," a spokeswoman says.

Wonder if this guy's gonna show up.

In place of its employees, Cisco can expect the usual flood of protesters who tail Bush. The company has drawn up one of those "free assembly zones" to accommodate them, and there will be law enforcement on hand. The spokeswoman wouldn't give out numbers of cops or vehicles expected.

The Republican duo is visiting Cisco's San Jose headquarters to participate with CEO John Chambers in a panel discussion on future competitiveness in America.

The crux of the discussion will probably be Bush's "American Competitiveness Initiative" aimed at keeping the U.S. workforce on a par with China and India. The 10-year, $136 billion plan was drafted with guidance from Silicon Valley executives and venture capitalists and unveiled during Bush's State of the Union Address in January. It includes proposals to make the R&D tax credit permanent and to add $50 billion to federal research budgets in the physical sciences. As part of the initiative, Bush also created a National Math Panel to look into improving mathematics education.

— Craig Matsumoto, Senior Editor, Light Reading

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shaggy
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shaggy,
User Rank: Light Beer
12/5/2012 | 3:56:37 AM
re: W Does Cisco
Article quote:

"The crux of the discussion will probably be Bush's "American Competitiveness Initiative" aimed at keeping the U.S. workforce on a par with China and India. That $136 billion plan was drafted with guidance from Silicon Valley executives and venture capitalists."


Oh boy, VCs, and silly valley execs, and W to boot- what a frickin' brain trust \.

I'm sure they will craft an open, unbiased plan to address this issue, making life better for all of us common folk. Uh-Huh, that's right, those VCs are sooooo alturistic.

/sarcasm
Sisyphus
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Sisyphus,
User Rank: Light Beer
12/5/2012 | 3:56:36 AM
re: W Does Cisco
> Oh boy, VCs, and silly valley execs, and W to
> boot- what a frickin' brain trust

Exactly my thoughts. Throw in a couple of elite academic experts into the mix, and if that's the "plan"... well, the trend will continue, and in 20 years we'll all be brewing cappuccinos for each other.
Pete Baldwin
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Pete Baldwin,
User Rank: Light Beer
12/5/2012 | 3:56:35 AM
re: W Does Cisco
Ah, I was wondering when the H-1B thing would come up. I don't suppose anyone will feel better if I add that Cisco and Intel contributed to the Competitiveness Initiative too... :)
OpticOm
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OpticOm,
User Rank: Light Beer
12/5/2012 | 3:56:35 AM
re: W Does Cisco
And the real culprit is the government (state and federal) because they are not regulating and taxing products of companies who are eliminating jobs here only to bring H1Bs and to outsource to foreign countries.
The pigs in corporate jets have an excuse that they outsource (bring H1Bs) to "maximize the shareholder value", even if the reality is that they maximize their gain in the first place, and then, maybe, think of shareholders.
OpticOm
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OpticOm,
User Rank: Light Beer
12/5/2012 | 3:56:35 AM
re: W Does Cisco
are to blame, not the math competitiveness.
When somebody gives you that crap, just ask him how come the outsourcing is going to China and India, countries who are not amongst the top performing scholastic and not to Japan or South Korea, who are.
The answer is corporate greed not math skills.
Pete Baldwin
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Pete Baldwin,
User Rank: Light Beer
12/5/2012 | 3:56:34 AM
re: W Does Cisco
Craig, please re-read post #4.

Dude, I posted that *because* of post 4, just for amusement. Laugh a little.

You do have the situation wrong, though -- the VCs aren't "paying homage" to the Competitiveness Initiative, they're taking (partial) credit for *creating* it. Which, in the context of your post, means things are even worse than you thought.
paolo.franzoi
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paolo.franzoi,
User Rank: Light Beer
12/5/2012 | 3:56:34 AM
re: W Does Cisco


Why do you think you should have a job when somebody else will do the same job for less money?

If you think taxing will do it, the companies will move their HQs out of the US.

Either do more work, better work, or specialized work - otherwise there is no justification to pay you a dollar more than the job pays in India or China. It is no different than any other job - like those being filled by undocumented aliens. They get those jobs because they will do them for less money.

seven
shaggy
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shaggy,
User Rank: Light Beer
12/5/2012 | 3:56:34 AM
re: W Does Cisco
Craig, please re-read post #4.

It echoes my sentiments as well. The VCs and execs will pay homage to the "Competitiveness initiative" in order to gain political chits, so they can continue to shovel jobs out the back door. So long as their pockets stay lined with cash, and the sacred "shareholder value" is preserved, they will smile for the cameras and keep on doing whatever will keep their cash flowing.

Would you like some fries with that?
paolo.franzoi
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paolo.franzoi,
User Rank: Light Beer
12/5/2012 | 3:56:33 AM
re: W Does Cisco
ice,

I am sorry that you do not understand economics. You get paid for a job based on your productivity. If people are willing to do your job at the same level of productivity for less money, you will lose your job. This will happen 1 of 2 ways:

1 - The company will hire the lower paid worker.
2 - The companu will go out of business because its products are too expensive.

I am simply pointing out to you economic reality. None of your points matter in the least. The whole point of globalization will be the leveling of wages. There is nothing that can be done about it. Your standard of living will go down. So, will the average person's in the US. If you think this is unique to engineering, then look at factory workers or farm workers. Then tell me why you buy any goods built in foreign lands or eat food picked by foreign workers.

seven
geof hollingsworth
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geof hollingsworth,
User Rank: Light Beer
12/5/2012 | 3:56:33 AM
re: W Does Cisco
I have seen lots of other self-interested people supporting the initiative, including the NSF, the NIH, the National Association of Manufacturers, the National Academy of Sciences, the Council on Competitiveness, and politicians of all stripes and colors. This is the first time I have heard that it was the brainchild of Silicon Valley execs and VCs. It is certainly not a priority for the NVCA, for example. From their website: "...we have not yet taken a leadership role in these efforts - nor driven policy decisions - as we have done on other core issues like capital gains reduction or stock options expensing." Not saying it isn't true, but I would be interested in your source.

Personally, I think innovation would be further ahead if we just stopped our spending on litigation and transferred a small fraction of that money to R&D. Surely we can agree to gang up on the lawyers, right?
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