Obama: We don't want next Intel born in China

President addresses budget, immigration issues at Facebook offices
By John Letzing, MarketWatch

SAN FRANCISCO (MarketWatch) — President Barack Obama used an appearance Wednesday at Facebook Inc.’s headquarters in Palo Alto, Calif., to pick apart a budget plan put forward by Republican lawmakers, and to encourage “comprehensive” immigration reform that continues to draw skilled foreign workers to the United States.

“We want more Andy Groves here, in the United States,” Obama said during the town-hall meeting, in reference to the Intel Corp. INTC +7.80%　 co-founder and Hungarian immigrant. The president advocated an immigration policy that allows for entrepreneurs like Grove to take root in this country.

“We don’t want them starting Intel in China, or starting it in France,” he added.

Obama before a friendly crowd

The president addressed a crowd of 700 people at Facebook's offices in Palo Alto, Calif., answering questions on the U.S. deficit, Rep. Paul Ryan's proposed budget plan, immigration and investment in education.

Technology firms in Silicon Valley and elsewhere in America have long lobbied for reforms that would let them hire more skilled, foreign workers using H-1B visas — which are currently capped.

Though demand for H-1B visas waned during the recession, it is widely expected to regain momentum. Obama held a meeting Tuesday to discuss immigration reform, which was attended by Facebook Chief Operating Officer Sheryl Sandberg.

Obama also was asked during his event Wednesday to address the ongoing debate with Republicans over the best way to cut spending as part of a budget compromise.

Under a Republican plan passed by the House of Representatives last week, some $6 trillion in government spending would be cut over the next decade by paring back programs such as Medicaid, and by lowering tax rates for wealthy Americans and businesses.

“I guess you could call that bold; I would call it short-sighted,” the president remarked. “Their vision is radical.”

He continued: “Nothing is easier than solving a problem on the backs of people who are poor … or don’t’ have lobbyists or don’t have clout.”

As an alternative, Obama touted cutting spending on items such as unnecessary military-weapon systems, increasing efficiency and rethinking the tax cuts implemented under his predecessor, George W. Bush.

Referring to the economic situation under President Bill Clinton during the 1990s — a period when Obama joked that many of the youthful attendees at Facebook were “still in diapers” — Obama noted that tax rates apparently did little to slow the economy.

“If we go back to those rates alone, that by itself would do a lot” to address the deficit, he said.

Obama turned to Facebook Chief Executive Mark Zuckerberg, recently ranked 35th on the Forbes list of wealthiest Americans, and pointed out that such a tax plan would mean “people like you and me” will pay more in taxes.

“I know you’re OK with that,” he added.

Obama did not directly address the recent decision by ratings firm Standard & Poor’s to downgrade its outlook on U.S. debt. Austan Goolsbee, chairman of the Council of Economic Advisers, has called the move a “political judgment.”

Obama began his appearance on a light-hearted note, saying he was proud to have compelled Zuckerberg, normally dressed in a T-shirt, to wear a jacket and tie for the event. “I’m very proud of that,” the president said.

At the conclusion of his appearance, Zuckerberg presented Obama with the same sort of hooded sweatshirt that the young chief executive is often seen wearing, adorned with the Facebook logo.

Closely held Facebook, which currently has more than 600 million users of its online social-networking service, is expected to undertake a high-profile initial public offering next year.