Brazil Approves Tax Incentives to Begin iPad Production as Apple Targets its Next Major Market

[kingtj]

re: Tim Cook

Considering Tim Cook is essentially the man behind the decision to outsource Apple's production in the first place? I don't really think he sees the benefit in making an effort to "bring manufacturing back to the United States"?

That's not a slam on Tim or anything... just the reality of the situation. He achieved great things for an Apple that was financially struggling BECAUSE he was willing to think globally and use every advantage available to get the products built cheaper.

Right now, Apple is in "multinational mode", much as Coca Cola and many other businesses are. They realize that essentially, the U.S. marketplace is saturated. Meanwhile, so many other parts of the globe are better prospects. As Steve Jobs said himself at his meeting with Obama last year, it's not Apple's job to fix America's financial situation.

Historically, Apple products cost a big premium pretty much everywhere outside the U.S.A. and most of that barrier can be eliminated as Apple produces the products in the same countries it wants to sell them to. So it's no surprise you'll see MORE of this instead of less.

If Tim Cook is such a genius at creative manufacturing, he ought to find a way - when others say it is impossible - to bring back manufacturing to the United States. Experiment. Use automation. Find ways to make things more efficient. Right now, even as a non-American, it sickens me to see Apple's growing pile of cash, and their insistence that Apple cannot manufacture in the U.S.A.

As I see it, if Apple has $99 billion in the bank from manufacturing outside the U.S.A. - wouldn't they still be happy if it had been, say, $50 billion with manufacturing in America. There comes a point there having less profit, but still pretty good profit, is actually better if it brings back not just retail jobs but the whole manufacturing process to America. It's not just jobs, but the technology, know-how.

Germany has maintained its manufacturing base, and it's only corporate greed in America that has prevented it from doing what Germany has done.

American people, think. Imagine this going on for another 30 years, the continual transferring of manufacturing overseas, simply because of corporate greed. America will become another basket-case economy like Russia with its corruption.

I love Apple products, and have for decades - but I loathe Apple's corporate greed.

For me, Apple's grovelling and dry-swimming in its pile of cash is the epitome of everything that is sick in corporate America - the pursuit of cash over any other principle in life.

 

[ebengtso]

why build a factory in brazil?

- no money repatriation costs
- lower labor costs than US
- skilled labor force
- high productivity and motivated employees
- PIB per capita growing
- huge market

 

[andrewlgm]

It is the government's responsibility to cause and expand flawed politics. It increases political employment. The Constitution and the founding documents warn us of this very problem. Suggestion: listen.

The dollar is under attack by the Fed and the Taxers and overspenders. Employment and gas prices and milk prices are the "collateral damage".

Union workers such as teachers, policemen including on campus, firemen, prison workers, and others are a far higher priority than students. Just look at lobbying in case you are confused.

Lowering tax RATES and making them the same for everyone will solve 70% of the problems.

Immigration used to not be illegal.

Rocketman

There is so much wrong with this comment it boggles the mind.

You sound very much like a politician who complains about the existence of government, but is in it, and will do anything to remain in power or get into it. It's the government's responsibility, especially a congressional, democracy to pass laws, and pass future laws to fix previous ones. It's a never ending process.

This thread is about Brazil getting a "factory." Why? Because its wealth and prosperity have increased so dramatically in 15 years that in a country of 160 million, 30 million previous "miserables" have joined the middle class. But high tariffs prevent the middle class from being able to enjoy modernity, and corporations from being able to tap the market - so they have to move in. That's why wolkswagen, fiat, sony, HP, and many others have opened full* manufacturing factories there. Why has there been this dramatic increase in the middle class?

Definitely not because of "'lowering tax rates for everyone,' thus solving 70% of all problems." This is reality. It's not necessary to speculate. We know what brazilians have done, and it does not match your philosophy. Brazilians unionized most jobs, much like America in its golden past, raised minimum wage federally throughout the country, and simply "GAVE AWAY" cash and food to the most impoverished. How was this done?

By raising taxes on the wealthiest in the country by a tax rate of 50% or more. They set up programs where if you could prove that your children were going to school, and you enrolled in a college education paid for or not by the state, they'd sustain you for the duration, until you got a JOB when done. This has been the brazilian story for over a decade. The rich are still rich, and richer due to investments and the growing economy, poverty is rapidly declining, and college enrollment and graduation rates have quadrupled in 10 years. You go from being MISERABLE by international standards, to making $2K-5K-10K (in reals) monthly depending on your area of study. You can't climb a ladder that doesn't exist. The brazilian government has built the ladder allowing for mobility.

You're absolutely right that overspending is a problem; however, Lack of income - in this case the US government being underfunded is also a problem. Taxation in the US is at an all time, historical, low for wealthy and middle classes. But a middle class family pays more of its 60K in taxes, than a millionaire in its 1 million. So if we're equalizing taxation, raise a millionaire's tax rate to the rate of a middle class family, if not above.

That's how you solve the problem - realistically and mathematically speaking. Welcome to reality.

 

[Rocketman]

in this case - the US government being underfunded is also a problem. Taxation in the US is at an all time, historical, low for wealthy and middle classes.

Taxes as a percentage of GDP are at an all time high. The historical average is 18% and we are now at over 25%. Debt as a percentage of GDP is now over 100%.

Brazil is not that crazy.

Rocketman

 

[andrewlgm]

Taxes as a percentage of GDP are at an all time high. The historical average is 18% and we are now at over 25%. Debt as a percentage of GDP is now over 100%.

Brazil is not that crazy.

Rocketman

Historical average of taxation is not the same as taxation in times of absurd spending - As we have had for the past 10 years under Bush and Obama with military spending.

Effective tax rate means the absolute federal revenue divided by GDP, and according to math, taxation rates are at an all historical low since 1950, at about 15% in 2010 - with the top 400 wealthiest in america paying 10%, 15% and 20% due to loopholes. You're able to claim 25% because that's a statutory tax rate - what the law says - not what people actually pay.

Corporate Taxes as a Percentage of Federal Revenue
1955 . . . 27.3%
2010 . . . 8.9%

Corporate Taxes as a Percentage of GDP
1955 . . . 4.3%
2010 . . . 1.3%

Individual Income/Payrolls as a Percentage of Federal Revenue
1955 . . . 58.0%
2010 . . . 81.5%

But this is all a waste of time. You refuse to look at reality.
tried googling lately "

 

[Rocketman]

Historical average of taxation is not the same as taxation in times of absurd spending - As we have had for the past 10 years under Bush and Obama with military spending.
But this is all a waste of time. You refuse to look at reality.

Statistics can be cherry picked.

Under Bush, despite the wars of choice, the military was about 4% of GDP. Not much of in crease. The official deficit (net of SS rape) was dropping before the crisis, and the TARP under Bush was already fully repaid. The TARP Bush approved for Obama was on Bush's last budget (2008-9) but was spent by Obama. Obama had his own stimulus under his first budget 2009-10, which we are still operating under since we have had over 1000 days of CR. So the "one time stimulus" turned out to be FOUR TIME and we STILL have low employment and growth. Keynsian debt and spend economics once again proven wrong. As usual.

I don't refuse to look at reality. I offer it.

http://www.charlierose.com/view/interview/12114
http://en.wikipedia.org/wiki/Friedrich_Hayek
The Constitution of Liberty (endorsed by Reagan, Thatcher)

That said, the prices of Macs, iPads and gasoline and milk have almost doubled in nominal terms under Obama due to the printing of money and currency debasement. I refer you to the annual report of the President or the federal reserve reporting of M2.

So Apple is doing an amazing job keeping prices and costs low. I hear a Chinese iPhone worker now makes $400-600 a month, but includes free food, utilities, and lodging. That's actually better than some of the folks around here!

Rocketman