POLITICAL PARTY POOPER

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Posts Tagged ‘Apple’

Obama Asked Apple and Intel for Advice on Job Creation? Really?!!!!

Posted by politicalpartypooper on February 18, 2011

Wow!

What a week in local and National politics.  In Wisconsin, we have the ongoing Liberal rage over Governor Scott Walker’s decision to remove organized bargaining power on Public Employees for everything except wages in an effort to rein in our out-of-control budget.  Nationally, there is talk of shutting the government down, and of course the usual partisan rhetoric over the budget.  Obama has a plan to cut $1 Trillion from the budget over ten years, and Republicans are screaming that this isn’t nearly enough.  Instead, their plan is to cut $60 billion from the budget this year.

You do the math.  Something seems funny about theirs.  Suffice it to say, if I were President, I could balance the budget in one year, and cut through all of the rhetorical bullshit along with it.  But I’m not President, so you are stuck with a D or an R for the forseeable future.  Good luck.

Turns out, none of the above is what this post is about.  Instead, I’d like to draw your attention to President Obama’s trip to the Silicon Valley, where he met with the likes of Intel CEO Paul Otellino, and Apple C0-Creator Steve Jobs.  Contrary to rumors, Obama wasn’t in the valley to pick up a bottle of wine.  Instead, he went there seeking advice on how to create jobs.

Pardon me, Mr. President, but where would you like to see these jobs created?

If America is your answer, you went to the wrong place.  Steve Jobs and Paul Otellino only hire foreigners…mostly.  I’ll bet their advice sounded a little something like this:

“Sure, we got lots of great ideas on hiring, starting with China.  Have you seen our latest factories there?  We got fourteen-year-olds working seventy hours a week for $1.10 an hour, and no one hears them whining.  Never mind that if they do they are likely to be shot by their government.  We got wages as a percentage of Wall Street profit down to an all time low!  We got Apple and Intel factories all over the Far East, but we’re struggling a bit trying to figure out why our workers can’t buy the products they make.  An Ipad only costs $600 when you get right down to it.  All of our workers make a little more than that every year.  Ipads should be flying off the shelves in China!  Maybe, Mr. President, you could send some American cash to China to help subsidize our foreign workers so they can buy what they build.  That would create lots of jobs!”

Umm, no.

I’m pretty sure Steve Jobs and Paul What’s-his-face know almost nothing about creating jobs here in America.  What did you think you would hear, Mr. President?  Did you think they would beg you to end Free Trade?  Did you think they would tell you that America needs to go deeper into debt to create jobs?  What?  What did you expect to hear from them?

Hear me now, America!  Obama’s dreams of creating jobs through making America the leader in Green innovation is bankrupt. It’s bankrupt because the moment the technology is created, American corporations will contract with the lowest bidder in China,  Indonesia, South Korea, or some other mostly third-world country, where the average wage is almost a dollar an hour.  Green technology won’t be our savior; it will be the final nail in the coffin.

The only answer to our staggering deficit in jobs is to pull back from these Free Trade agreements, and tax the crap out of “American” companies whose vast majority of labor is foreign…like Intel and Apple.  Taxing them won’t hurt our economy at all.  They don’t hire people here.  Tax them, I say, and do it again and again and again.  Lather, rinse, repeat.     Ω

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No Recovery, No Jobs, Part Three

Posted by politicalpartypooper on April 29, 2010

Would you buy this Apple?

Continuing my series about what caused our economic collapse, when it actually began, and why the “Recovery” will remain a jobless recovery until we reverse the effects of Free Trade and the outsourcing of jobs by America companies, allow me to present Exhibit A:  Apple, Inc.

You read that correctly.  Most of American sweetheart Apple’s manufacturing takes place overseas, especially in China, where labor is dirt cheap, young and workers don’t talk back, or complain about sixty-hour-work-weeks.  And why does Apple manufacture overseas?  Because the US gives them tax breaks to do so, and the World Trade Organization gives them subsidies for employing third-world labor.

That iPhone you just had to have?  Made in China.  That brand new too-cool-not-to-own iPad?  Not Made in America, like Apple claims.  Nope, it, too, is made in China.  Why?  Because even though Apple is a premium company which charges and gets premium DOLLARS for its products, apparently they are also a company that believes in paying its employees almost nothing.

A study completed by the Personal Computing Industry Center at  UC-Irvine showed that wages paid to non-US workers for production of the iPod in 2009 was $90 Million.  Those wages were paid to 19,190 employees, for an average annual wage of $4,689.

I didn’t forget a zero at the end of that average wage.  It really is $4,689.

Yet another source, Harvard Business Publishing, calculated that iPod prices would not differ greatly were Apple, Inc. to manufacture the iPod in the US.  Two examples display this perfectly, at the high-end and low-end of the price differential between manufacturing overseas (China) and here in the US.  The Apple iPod Shuffle 1GB sells for $79 currently, and as manufactured in the US, would sell for $108, a 37%  differential.  If all Apple products had that kind of differential, you might understand why they manufacture overseas.  However, the Apple iPod Touch 32GB sells for $399 as manufactured in China, whereas it would sell for $428 if it were manufactured here, only a 7% differential. The estimated costs of labor in the U.S. and China are $24.59 and $1.47 per hour, respectively.  At those rate differences, this isn’t about Capitalism, it’s about slavery.  It turns out that the higher the price of a good manufactured by Apple, the less of an effect the cost of labor has on it.  Which begs two questions; why is Apple selling America out,  and why isn’t the media saying anything about it?

I am going to give you some homework, now.  Don’t worry, it’s nothing difficult.  Your assignment is to Google “Apple factories”, and see what you find. It’s guaranteed to change everything you thought you knew about Apple, Inc.

Tax breaks for Apple to create jobs overseas.  Subsidies from the WTO for creating jobs overseas.  Child labor.  Near-slave labor.  Sixty-hour work weeks.  Toxic working conditions.

How badly did you want that iPad?  Badly enough to be willing to kill for it or endorse child labor or slavery?  That’s what you’re doing when you buy an Apple product made overseas.

Could moving those jobs back to America keep Apple competitive?  If their product is as good as they claim, they’ve proven an ability to charge almost any price for it, and get it.  The faithful will continue to buy Apple’s products presumably no matter what.  There is no doubt that if Apple moved its factories back to the US, prices would increase.  But the percentages shown aren’t anything at all like what I expected.  I have no doubt that Apple could continue sales growth at its current pace even charging ten to fifteen percent more than it does now.  They make cool stuff.  It works.  People will pay premium dollars for it.

After reading this article, will you?

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