Business Investment is Key to Job Growth: FedEx's Smith

The US needs to maintain an environment that encourages business investment, which leads to job growth, Frederick Smith, FedEx chairman and CEO, told CNBC Monday.

“Capital investment today is at about 8 percent up year over year, equipment and software is at about 19 percent, structures are still down 14 percent, but even with that progress, we’ve significantly below where we were in 2007,” said Smith, speaking from the shipper’s headquarters in Memphis.

“And investments create jobs: It’s the only thing that’s 100 percent related to job creation is private business investment.”

A step in the right direction, said Smith, was President Obama’s expensing provision.

“What expensing does is to reduce the risk of making capital investments,” added Smith. “I think what we have to do is to provide an investment environment in the United States where we’re the best place to invest in the world.”