Follow The Money & Production

While the debt ceiling debate provides the daily noise, it redirects attention away from on-going secular shifts (trends) in employment, flow of capital, innovation, etc. Structural shifts in global production and innovation present challenges for the US that extend well beyond the sovereign debt crisis. Capital tends to follow the path of least resistance. The path of least resistance avoids excessive taxation. Follow the money. Follow the production. The message of the market is clear. Frank has recognized it.

Eric,

Headline: GE moving X-ray business to China

General Electric Co.’s health care unit, the world’s biggest maker of medical imaging machines, is moving the headquarters of its 115-year-old X-ray business to Beijing.

“A handful’’ of top managers will move to the Chinese capital and there won’t be any job cuts, said Anne LeGrand, general manager of X-ray for GE Healthcare. The headquarters will move from Wisconsin amid a broader plan to invest about $2 billion across China, including opening six “customer innovation’’ and development centers.

The division should have “double-digit’’ growth rates as the country converts from film and analog to digital X-ray technology, LeGrand said.

Source: articles.boston.com

Frank