Business investment, not government stimulus, will create jobs, Frederick Smith, chairman and CEO of FedEx, told CNBC Friday.
“The only thing that virtually tracks jobs creation almost 100 percent is private business investment. And private business investment today is down about 8 percent from its peak a couple of years ago.
"If you take structures, buildings, into account, it’s down 15 percent,” said Smith. “If you cannot get business investment up, it will not create jobs.
“It doesn’t make any difference what the Fed does in terms of easing [quantitative easing], it’s business investment that’s the driver.”
Smith said that he supported President Obama’s proposal to allow companies to immediately write off 100 percent of new capital investment expenses and software through 2011.
He also said that China in particular is “roaring ahead” and that he expects no slowdown in that area of FedEx’s business. Smith said FedEx has been in China for nearly 25 years.
Smith added that international express business is very strong and that US exports were up 18 percent in the second quarter.
FedEx employs 300,000 people worldwide.