Why Did I Move to Prague

Today the NY Times is filled with the writings of many wise men telling us what we should do including the development of FDR like infrastructure banks. But the key question that seems to be hidden somewhere is why do companies make decisions. Decisions to invest, relocate, expand, and the like. Often they are really rational in nature despite what others may think.

Take for example why I moved from New Jersey to Prague. The first reason was that New Jersey has one of the most unreliable power grids in the world. It kept failing multiple times a month. At first I had battery back up and then I got a motor generator set but soon it became clear that this was a pandemic issue and the electrical power company was in my opinion rather lacking in some key areas. Second labor was cheaper, third, we got closer to our ultimate customers, and fourth we could get cheaper offices and work in one place.

Ultimately our decision was based upon the question; how do we increase earnings. Simple. Cut costs where not essential, get close to the customer, position product properly, then look at tax issues. Prague it was.

Somehow the current Administration seems to be somewhat clueless in understanding this issue. By increasing costs and taxes they make the decision easier, go elsewhere. Perhaps they have their ideas fixated in this manner because they never ran a company, especially in a global market. By the way, we never thought of moving to Greece or Germany, the governmental overheads would have killed it. Hint!