Pinnacle Activity Ticker
Big Pharma: Investing in the World of Big Government
Pinnacle Digest writes: Bill Frezza, our American based 'pharmaceutical expert' recently attended the BIO International Convention in Boston. As government involvement and subsidies continue to sicken the industry, and guide it into uncharted waters, Frezza is not blinded by the bright lights and plush carpets which lined the BIO International Convention floor.
Countries and counties clamored for investors' money in hopes to lure new companies into new regions.
Frezza explains a sad, but all so typical encounter he had in today's subsidy driven pharmaceutical world:
“Come to France!” cried the barker from the swankiest booth display on the show floor. Why would I do that, I asked, if you have to pay astronomical taxes, your employees are not allowed to work more than 35 hours a week, and once you hire someone they become a liability for life?
Because, explained the good natured representative of better living through subsidy, if you hire a freshly minted French Ph.D. the government will pay for 60% of his salary! And for everyone you put on the payroll anywhere in the EU, the French people will cut you a check for 40% of that employee’s salary the first year, 35% the second year, and 30% in perpetuity. All you have to do is set up your head office in France.
Wait, I asked. Can I open an office in Paris, put one person there, hire 300 people in Ireland, and French taxpayers will write me checks to cover a third of my payroll?
But of course! Those are the harmonized rules. We are all Europeans now.
I pondered the broader implications of that proposition, images of Greek flames dancing in my head, as I ambled over to the New Hampshire booth.
You cannot help but let logic rule and it makes you wonder when it will all come crashing down. The next EU summit is in a few days and we're sure they'll fire off another few hundred billion to keep the wheels spinning. Frezza goes on to break down the core issues and hopes of change.
Read this article...