You're watching...
Becton Dickinson CEO Ed Ludwig on how the government can support the private sector in growing the economy and boosting job growth.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Or a -- brother Eric US -- slowed sharply today on the heels of them doing a much the same pretty much everywhere MarketWatch reported CEOs aren't taking any chances these days.
Most -- had been -- gas is up 18% year three years.
Not a whole of the companies have been exclusively hoarding that cash medical diagnostics products.
Power house -- Becton Dickinson.
Actually sees opportunity right now its earnings up in the latest quarter more than 12% that's a lot of that buoyed by a weak dollar but not all of it with me now the company's.
Chairman and CEO -- Muslims.
We're -- -- -- to break -- that you're hopeful you obviously have to -- to the worse but you're hopeful explain.
-- the hope comes than that we have the the capacity to solve our problems we've we've got a debt overhang is no doubt about it United States and Western Europe.
We need leadership to as we were a couple we -- -- confronting the brutal facts you could hope it wasn't there.
Front of -- facts everyone's got to come to the table put everything on the table for discussion I think we can move on here I don't see that happening in the short run so as I said we are.
You know we're we're guiding that.
That the situation is gonna stay about the same for the for the foreseeable future but.
I think it's solvable you know we look at what's going on and -- -- -- and I -- debt crisis everywhere and it's a well.
Doesn't affect your earnings doesn't affect most corporate -- and what they're doing but you argue longer term it does -- would explain.
-- longer term if the government is borrowing.
It's crowding out private investment if the government is overly controlling.
It's it's stifling innovation and what we need for.
You know government doesn't create jobs they create an environment that creates jobs.
That investing in R&D Capital One of the scariest things efforts that -- those that.
Crisis right now that we may be starting to dis invest in the national institute of the NIH that's the United States is a beacon of innovation in medical technology and pharmaceuticals.
Best in the world.
And if we stop feeding.
These are basic research there through cuts and NIH that would be a big problem.
You know the other thing that's going on is a health care is consuming more of our GDP and it's approaching three trillion dollars 20% of our GD -- BD in some of our brother and in the medical technology industry we are about making sure that health care costs go down because of investments we're making.
And that outcomes.
That's so you know yeah.
Made in this environment but having said that maybe you saw this coming years ago are you prepared for the worst but you have hedge your bets it had spread out.
It would have -- more than half your your revenue -- earnings come from abroad right.
We'll be he's been a global company for over fifty years 57% of our revenue of moral problem come oh it's it's very -- brought in amounts well we're growing in the emerging markets -- Asia.
Africa Eastern Europe -- -- -- Western Europe growth is about one to 2% -- this latest news doesn't really.
Now it doesn't help but I think it's it has gotten to that point it's sub in in Europe by governments spend most of their money -- By most of the health care that's consumed in Europe is is paid for by governments.
They're looking at rationing they're looking at stretching up procedures.
And that's not good for the population that's actually the opposite of what should be going -- Investing in.
It's like a business if you stop investing in productivity you start to become less productive and less and less competitive.
To the extent that you're not making the investments.
To improve the health care system information technology reduce errors reduce infection rates.
I think you make it a system work better so you've got a plan you've got a game plan now a lot of -- -- -- -- the weaker dollar which has -- the wind that you're backed by the what you it's still expected to be.
We're looking at a dollar -- At or below where -- is -- now slightly weaker dollar over the for the foreseeable future -- sort of strong -- the tax -- not not for this not for the time being coconut.
Mention not you see in your company's original case but that this notion had all this money.
Is sitting offshore corporations.
-- -- two trillion dollars right that's offshore.
How do you bring him back.
When you bring back by had not taxing it again mean to the money that we've -- offshore has been tax that local rates now.
In all but one case which is Japan those local rates are less than US marginal corporate tax rates marginal corporate US tax rate for the second highest of any.
Industrialized country country in the world so the rules when you bring it back you have to pay the difference between the US rate and the rate -- paid.
They want you to pay it about operating thirty thoughts several years ago and that's that's a big number that's that's tax inefficient we president doesn't seem to years.
Well it's about five years ago we did have a Hollywood broadcast -- That's it in in expansionist and like that but we didn't see this a good job so that that's -- the Obama people say.
See we get that break was given to them.
They didn't.
They did hire with that.
Well it's a hiring is his multi effect Oreo -- mean we hired to satisfy demand as I just said.
You know if if consumption is contracting that's the primary -- -- -- to get here so -- really wanna get the economy moving.
Get people back to work get people buying things you know the consumer -- -- thirds of our economy.
And that's really what's going on there's there's multi factor -- I was a -- you know everything is and it's very good sense and an and it's been in.
It's a simply sums up where we stand.
But when you hear the president here others -- CEO's -- companies are trying to dodge taxes you pay a lot taxes on.
The Euro lumped in with the hedge fund managers and Green from that.
Strategy and they keep and that you know I employ a lot of people life -- play it in incremental in strike here.
C'mon give me a break that that's it that's not the world that lived through world you just described as not the world that what we're trying to create.
Value we're trying to improve the health care system.
Our deployment date and reception.
-- -- all right what do -- United States is actually slightly up over the last ten years slightly up over the last ten years now.
Ex US it's up a lot more but are what we sell in the United States -- and they can we make it that that's true for a lot of my brother in medical technology so.
We're creating jobs in places like Nebraska and Maryland and what does -- talked to the president wasn't busy here you I don't know if you listens for I don't know if it's on -- -- personal level but but we do I spent I spent two years leading our trade association I spent a lot of time in Washington speak.
Speaking to our representatives talking to folks -- that He -- I don't know I really don't know I I don't know that He doesn't like -- I think everyone are you for many of your colleagues.
-- -- off the record.
Who's saying now we don't think He does He -- thousands doesn't like capital.
Capitalism.
It is the deeds He does does I wouldn't wanna speculate there I I I know He has as best interest and in the United States I can't imagine that He would not want the medical technology and health care industry to do well.
So we're focusing on improving diabetes care.
Infection control.
Screening cancer so that they don't become big problems that we Ketchum early.
All of this translates to lower health care costs.
To the dollar you spend watching that certainly is screaming -- coming down the -- that I'm sorry -- in any products for.
Washington lazy you see -- -- up.
No we don't and you know it up now on on the message zebra a lot of very good points and it is weird -- it's very -- thank you very much it's good to be.
