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This just isn't true. I'm an engineer, working in manufacturing all my life. Our companies have many many PEOPLE work in the facilities doing fabrication and assembly work. Also setting up a fully automated assembly line does include many jobs building the line, and also supporting it once in production.

Exactly. Even an automated line still has a lot of people supporting it. As automakers have moved more and more to automation they are hiring less assemblers, but more skilled trades workers. These plants need plumbers, electricians, robot technicians, engineers, quality control inspectors, etc. No you aren't going to get hundreds of thousands of minimum wage assemblers, but you will get several thousand skilled workers.

This isn't going to employ everyone, but it's a small piece of the whole pie. It's worth investing in.
 



In a recent interview with The New York Times, President-elect Donald Trump said he received phone calls from Apple CEO Tim Cook and Microsoft co-founder Bill Gates after winning the presidential election earlier this month.

Donald-Trump-NYT.jpg

Donald Trump at The New York Times offices in Manhattan

Trump told Cook it will be a "real achievement" for him when he gets Apple to make its products in the United States, as opposed to countries like China and Vietnam where many of its current manufacturing partners operate.Cook acknowledged the proposition by nondescriptly saying "I understand that," according to Trump.

Trump said he is confident Apple will turn to U.S. manufacturing based on the incentives he plans to offer the iPhone maker, including a "very large tax cut" and "substantial regulation cuts" for corporations.A recent report said Apple asked its Taiwanese manufacturing partner Foxconn to study the possibility of moving iPhone production to the United States, although Foxconn chairman Terry Gou is said to be less enthusiastic about the idea due to inevitably higher production costs compared to China.

While campaigning at Liberty University in Virginia earlier this year, Trump said "we're going to get Apple to start building their damn computers and things in this country instead of in other countries," while he has also threatened to introduce a 45% tax on products imported from China.

Cook previously said Apple manufactures iPhones in China because the country has put an "enormous focus on manufacturing," while noting the U.S. workforce has a smaller number of individuals with the "vocational kind of skills" needed.Apple also benefits from lower wages in China, where many of its suppliers are located within close proximity of each other. In Asia, Taiwan's TSMC makes A-series chips for iPhones, Japan's Sharp and Japan Display supply iPhone displays, and South Korea's SK Hynix and Japan's Toshiba produce memory chips for the device.

Apple does have a Mac Pro manufacturing facility in Austin, Texas, operated by Flextronics, but it is a limited effort given the relatively low production volume of its high-end desktop computer.

Cook was personally a Hillary Clinton supporter, hosting a fundraiser for the Democratic presidential nominee in August on behalf of himself. In a company-wide memo issued following Trump's victory, Cook urged Apple employees to "move forward together" despite "uncertainties ahead."

Apple as a company showed support for both the Democratic and Republican parties during their respective campaigns, but it reportedly withheld support for the 2016 Republican National Convention due to Trump's controversial comments about minorities, women, and immigrants, among other subjects.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: Donald Trump Tells Tim Cook He'll Offer Apple 'Very Large Tax Cut' to Make Products in America
 
Exactly. The labor laws in the US contribute to higher prices due to the fact that US companies have to employ more workers because hourly workers have too many perks. As far as I know, an hourly worker must have a 15 minute break every two hours and a 30 minute lunch break every four hours. Many other countries don't have their employees wasting 1/8 of their entire shift in the break room. Workmans comp, paid vacation, paid sick days, paid personal days.. this time and money adds up in the long run and forces the company to employ more workers to do the same amount of work. Oh, and let's not forget paid holidays (how many are there now?). If we want companies to "bring manufacturing home", we need to reexamine the labor laws.

I'm all up for employees having breaks etc, a 30min break every 4 hours seems reasonable to me, however with unionised wages pushing up costs, Apple and other companies would undoubtedly pass these onto the consumer, causing inflation to rise. So yes, local jobs mean employment, but for how long? As others have said, automation/AI is already here, and with rising wages comes rising prices/inflation.
 

This just isn't true. I'm an engineer, working in manufacturing all my life. Our companies have many many PEOPLE work in the facilities doing fabrication and assembly work. Also setting up a fully automated assembly line does include many jobs building the line, and also supporting it once in production.


Exactly. Even an automated line still has a lot of people supporting it. As automakers have moved more and more to automation they are hiring less assemblers, but more skilled trades workers. These plants need plumbers, electricians, robot technicians, engineers, quality control inspectors, etc. No you aren't going to get hundreds of thousands of minimum wage assemblers, but you will get several thousand skilled workers.

This isn't going to employ everyone, but it's a small piece of the whole pie. It's worth investing in.


Yes indeed. Steve Jobs made it clear that the biggest challenge in bringing back production was that we simply did not, currently, have the massive number of engineers needed to have an efficient and nimble manufacturing system.
 
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That will have to be one very generous tax cut, given that a Chinese worker gets paid less per week than an American per hour by some considerable margin. Apple could not afford to compete against Samsung if they were to build in the US.

The UK is on a road to counter this effect, we intend to devalue our currency making imports so expensive that it is cheaper to build everything at home than to ship it in. The only downside is.......... everything will be very expensive, so so expensive.

Wish us luck guys. I suspect the US may be following our example soon.
 
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It is if it leads to hyper inflation and no real growth in total production.
Oh yeah... Because history is riddled with examples of a prosperous company leading a country into hyperinflation merely by opening a manufacturing plant. o_O
 
The labor participation rate (U6) is the issue. Worst in decades.

Nope.

http://portalseven.com/employment/unemployment_rate_u6.jsp?fromYear=1994&toYear=2016

Here's a chart for you.
4a3816a0d340241d9dc057d30d127806.jpg

That's not what the data shows. View attachment 674336

Why do you keep posting BS misleading charts?

Ok you're right. Lets do NOTHING about the situation. Happy?

No one's saying to do NOTHING. What they're saying is we shouldn't focus our efforts on bad solutions. Most of these jobs are never coming back. There will be no market for them. Whether it's manufacturing or coal plants or something else, nobody likes to hear that their profession is becoming obsolete. But instead of trying to fill false promises and string these people along, we should look into retraining and helping these people transition to other fields.

It's because he actually cares.

I'm amazed people actually believe this.
 
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Imagine, just imagine Mac prices when they get built in the west instead of cheaper countries in the East.

*Shudders*

I don't think you understand economics. The high prices IF they were built in the US comes from regulations, unionized labor (another form of regulation), and perverse corporate taxes. Thus, these costs are passed on to the consumer in the form of high prices. If people stopped repeating soundbites and objectively looked at basic free market economics, then it's pretty simple.
 
I don't think you understand economics. The high prices IF they were built in the US comes from regulations, unionized labor (another form of regulation), and perverse corporate taxes. Thus, these costs are passed on to the consumer in the form of high prices. If people stopped repeating soundbites and objectively looked at basic free market economics, then it's pretty simple.

Not to mention shipping most of the components to the U.S. in order to be assembled. Other than the glass, not sure much else is built in the U.S.
 
Substantially all component suppliers should be nearby the final assembly factory.
It will be beyond the control of Apple or Foxconn.
This would have to be an industrial exodus, but that what eastern Asian countries did in the past, and many people believe the movement cannot be reversed.
I am very interested to see how this will happen, and I think it will happen.
 
Sadly, the simple numbers just don't add up. Let's say Apple is currently paying about 25% tax. I'd assume that is tax on PROFIT, not on REVENUE (which is around 5x higher), but let's say it's tax on revenue. That would mean that even if you said Apple pays no tax at all, they could only cover 25% of the current product price in added labor costs. But my impression is total cost would become 2-3 times higher with American labor ($50/day vs $1/day), so there simply isn't enough tax to pay American salaries - instead the price of Apple products would go up. Did I mention that a 2016 Macbook Pro maxed out with AppleCare and tax already topped $5,000 ?
 
No one's saying to do NOTHING. What they're saying is we shouldn't focus our efforts on bad solutions. Most of these jobs are never coming back. There will be no market for them. Whether it's manufacturing or coal plants or something else, nobody likes to hear that their profession is becoming obsolete. But instead of trying to fill false promises and string these people along, we should look into retraining and helping these people transition to other fields.

What are these fields? More social workers?

I don't think anyone here thinks putting everyone on an assembly line is the answer to putting people back to work. All most of are saying is that this is something that should be factored into our future workforce. I believe it was Tim Cook who stated it is hard to manufacture in the US because we don't have a workforce that is properly trained for modern manufacturing. Why is this the case? We need to be educating students for a modern economy.

If Apple spends billions in building a new state of the art manufacturing plant I don't see how that hurts anything. It will take a lot of people to build it. It will take a lot of engineers, waste specialists, and skilled trades workers to keep it going. It will provide a lot of local tax impact not to mention creating wealth by producing a product.

Look this is not the answer to everything and won't put everyone to work, but build a few dozen of these plants in the US and it will have a positive impact. There is no one big thing that will fix everything, but we need to invest in a lot of small things to make a big impact. Don't just dismiss ideas before we investigate them fully.
 
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What are these fields? More social workers?

I don't think anyone here thinks putting everyone on an assembly line is the answer to putting people back to work. All most of are saying is that this is something that should be factored into our future workforce. I believe it was Tim Cook who stated it is hard to manufacture in the US because we don't have a workforce that is properly trained for modern manufacturing. Why is this the case? We need to be educating students for a modern economy.

If Apple spends billions in building a new state of the art manufacturing plant I don't see how that hurts anything. It will take a lot of people to build it. It will take a lot of engineers, waste specialists, and skilled trades workers to keep it going. It will provide a lot of local tax impact not to mention creating wealth by producing a product.

Look this is not the answer to everything and won't put everyone to work, but build a few dozen of these plants in the US and it will have a positive impact. There is no one big thing that will fix everything, but we need to invest in a lot of small things to make a big impact. Don't just dismiss ideas before we investigate them fully.

It will have a huge carbon footprint due to the logistics of shipping components half way around the world to assemble, thus increasing global warming, and flooding the major metropolitan cities on the coasts. This will in turn create massive new employment in home building, etc. So it's win win.
 
The "unemployment rate is low" is a myth that is one of the most destructive ones out there. It's only "low" because we have a system in which we don't consider you "unemployed" if you have stopped looking or otherwise dropped out of the work force. We have massive numbers of people who simply aren't counted. Hopefully, there will be non-partisan support for changing how we calculate this number.

Secondly, under no scenario would this occur overnight anyways. What it would hopefully bring is a new focus on preparing the engineers and other skilled folks to operate these factories that would have to be built. Yes, some lower skilled employees would be needed, but since automation/robotics is the future the jobs will be different than the large assembly lines of low paid workers you are imagining. And no, that doesn't mean all would need to be "college educated." This could spark a needed renaissance in occupational training and vocational education that doesn't leave our children saddled with debt and years behind.

Employment numbers are also misleading since they can include government jobs.
 
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