Andy Grove From Intel Is Wrong

Reference:

Altucher, J. (2010, July 6). Andy Grove From Intel Is Wrong. Retrieved September 13, 2010, from The Wall Street Journal: http://blogs.wsj.com/financial-adviser/2010/07/06/andy-grove-from-intel-is-wrong/


Summary:

In his article, “Andy Grove from Intel is Wrong,” James Altucher explains how the former Intel CEO Andy Grove is mistaken in his protectionist financial views. According to Altucher, Grove is a great business man and personal hero but is mistaken on his views. He points out that Grove is unable to point out one country that has thrived by being protectionist. He refutes Grove’s claim about tanks in the streets in 1932, by pointing out that the crisis that drove them there were protectionist policies. He then uses as an example post World War Two Germany and Japan whose open trade policy led to a remarkable financial boom. He finishes by claiming that innovation is still being done in America, pointing out Google and Facebook. He finishes by stating that if everything was made in America it would be too expensive to purchase.


Response:

I am unclear whether I agree with Altucher or Grove. Both make good points about their views on the economy and business. I tend to side more with Grove because he laid out a better argument. However, Altucher does make some valid points. I do agree that being to protectionist could be bad for business, and eventually for the consumer. We have to remember that if it costs a company more to make something, it will cost more to buy it. I cannot help but wonder if it may not be better to combine the two views. Still, it is not healthy for any economy to be totally reliant on outside sources of manufacturing. There are certain things that a country should make for itself. While I do agree more with Grove, I don’t want to get carried away and completely do away with free trade between nations.