The chart only goes up to 2012. The data for labor participation rate doesn't change through 2016.
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Donald Trump Tells Tim Cook He'll Offer Apple 'Very Large Tax Cut' to Make Products in America
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Why do you invest so much time, money, and energy into getting advanced degrees not to use them?
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I was wondering about this too. I'm no expert, but what's I've read shows that unemployment in the U.S. is currently the lowest it's been in a while.
Thank you for exhibiting an open mind and asking me a question vs accusing me of outright lying (as another poster had done).
I made some other posts after that post which will probably answer your question.
Out of curiosity, what do you think a Chinese worker gets paid per week, and what do you think an American gets paid per hour? Minimum wage in Shenzhen is 18.5 RMB = $2.67 per hour. That's _minimum wage_. Which American worker makes considerably more than $106.80 an hour?
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No I don't know if you're taking the piss or if that is what you actually believe.
How is it corporate welfare if that revenue would not otherwise be generated in this country to be taxed in the first place? That is how Apple operates today, what Trump is proposing is lowering the tax burden on money that otherwise would probably never hit the shores in exchange for moving production stateside.
Additionally, you don't seem to have a very good concept on how automation works. Robots do not work 24/365 without supervision, and require a huge amount of investment over the product life cycle. The technology isn't anything new, and it's not getting less expensive. Foxconn's renewed interest in automation is due to the rising cost of labor finally pushing the balance beam that way. The primary reason China has ever been competitive is due to the large pool of cheap labor, where inefficiencies in process could be solved by just throwing more bodies at the problem. This hasn't been the case in the US, Germany, or Japan for 40 years and that's why factories in these countries are automated to a much greater degree. The ultimate irony is that Chinese automation and machine tools are terrible, and they have to import this technology from the US, Germany, and Japan. This won't be the case forever, eventually they will get good at it, which will just cost us even more jobs.
There is tremendous opportunity for the US to become a hotbed for manufacturing again, by applying our ability to create highly efficient, automated and optimized factories that employ highly paid engineers and technicians. China is loosing their competitive edge right now, with many EMS looking to move more and more work to Mexico in the future.
Also, small businesses already take advantage of automation as they are typically forced to make the initial investment as to have a shot of being competitive. Go look at any microbrewery and see if they have a group people putting bottle caps on bottles and applying labels...
Prices can be impacted, but it's not necessarily comparable to the way certain people portray it. When you see them quote $0.10/hr vs $15/hr without a source, it means they lack credibility.
Sometimes companies do set up manufacturing in the US, because the difference in costs is not entirely driven by cheap labor, especially with the level of inflation experienced by China. It's important to realize that percentages are relative to the year reported, as they follow an exponential distribution. The links are just examples which I happened to remember. The point of them is that it depends. In some cases it may be less viable. Most of the consumer electronics supply chain is in Asia, which skews things a bit.
It's also important to note that pricing isn't an entirely fixed function. Apple decided they could sell updated Macs at higher markups. That doesn't mean they were previously only bordering on profitability.
Don't forget to add that at that point the iPhone is at a considerable cost disadvantage when selling everywhere else, due to the added build costs. So less profit for Apple and its shareholders and higher costs for everyone else. Win-Win.
As far as Trump being a successful businessman...sure, just like George W. was. W. couldn't even run an oil company, and Trump can't even run casinos--both of which are pretty much guaranteed to make rich kids "successful" (wink-wink). He's a fraud. As are the evangelicals and Republicans who denounced him yet voted for him.
(Trump on toilet tonight @ 3 am) Ohh, so unfair...I chose NOT to pay all those vendors with none of my own money! Mine!
Few people are trained to think critically as you are suggesting. We also don't require economics and other basic courses, so tit sounds nice and simple, "just put a import tax." Of course, China will retaliate and then American farmers will suffer greatly and loses money and jobs. Boeing will lay off thousands of workers when our planes are no longer competitive, etc. Additionally, Apple will lay off thousands as people can no longer afford the more expensive products.
Uhm, because mega-companies with lobbying pull will get tax cuts, while smaller companies, most of them local, will not. So, I will repeat, slower: SELECTIVE tax cuts to mostly mega-corporations are inherently unfair.
As to Apple's new plants, if I recall, Apple already made noise that it's moving an iPhone plant from China to the US.
The trouble for US workers is that fact-checkers pointed out that the whole plant will employ about 500 people. And Apple got large tax incentives, which are generally NOT available to smaller local businesses, which employ similar number of people.
Get it now?
As with the "cat in the microwave" story, that is another common Internet myth. In reality, Apple is the largest taxpayer in the United States. In reality, Apple is the largest taxpayer in the world.
People have to accept those jobs aren't coming back. If cooperations move their manufacturing back to America, by time that happens robots will be doing those jobs. Humans won't be needed anymore for those jobs and then what?
The solution isn't tax cuts but education is. If people have access to affordable higher education then there won't be a need for folks to depend on manufacturing jobs.
The solution isn't tax cuts but education is. If people have access to affordable higher education then there won't be a need for folks to depend on manufacturing jobs.
You recall incorrectly. Apple doesn't move plants. Foxconn and others that do the manufacturing do. You are probably referring to the fact that Foxconn is considering moving some production to India.
[doublepost=1479937923][/doublepost]Lots of confusion over Apple's production of products. There are really just two main companies that ASSEMBLE them and that is mainly done in China by Foxconn and Pegatron.
It currently assembles the majority of Apple's iPhones in its Shenzen, China, location though Foxconn maintains factories in countries across the world, including Thailand, Malaysia, the Czech Republic, South Korea, Singapore, and the Philippines.
Pegatron is a relatively recent addition to the iPhone assembly process. It is estimated that it built about 30% of the iPhone 6 orders in its Chinese plants.
However, there are dozens of other companies that manufacture the actual components that go into the iPhone
The iPhone's Component Manufacturers
Since there are hundreds of individual components in every iPhone, it's not possible to list every manufacturer whose products are found in the phone. It's also very hard to list exactly where those components are made (especially because sometimes one company builds the same component at multiple factories).
Some of the suppliers of key or interesting parts for the iPhone 5S, 6, and 6S (according to IHS and Macworld), and where they operate, include:
- Accelerometer: Bosch Sensortech. Based in Germany, with locations in the U.S., China, South Korea, Japan, and Taiwan
- Audio chips: Cirrus Logic. Based in the U.S., with locations in the U.K., China, South Korea, Taiwan, Japan, and Singapore
- Battery: Samsung. Based in South Korea, with locations in 80 countries
- Battery: Sunwoda Electronic. Based in China
- Camera: Qualcomm. Based in the U.S., with locations in Australia, Brazil, China, India, Indonesia, Japan, South Korea, and more than a dozen locations through Europe and Latin America
- Camera: Sony. Based in Japan, with locations in dozens countries
- Chips for 3G/4G/LTE networking: Qualcomm.
- Compass: AKM Semiconductor. Based in Japan, with locations in the U.S., France, England, China, South Korea, and Taiwan
- Glass screen: Corning. Based in the U.S., with locations in Australia, Belgium, Brazil, China, Denmark, France, Germany, Hong Kong, India, Israel, Italy, Japan, South Korea, Malaysia, Mexico, Philippines, Poland, Russia, Singapore, South Africa, Spain, Taiwan, The Netherlands, Turkey, the U.K., and the United Arab Emirates
- Gyroscope: STMicroelectronics. Based in Switzerland, with locations 35 countries
- Flash memory: Toshiba. Based in Japan, with locations in over 50 countries
- Flash memory: Samsung.
- LCD screen: Sharp. Based in Japan, with locations in 13 countries
- LCD screen: LG. Based in South Korea, with locations in Poland and China
- A-series Processor: Samsung.
- A-series Processor: TSMC. Based in Taiwan, with locations in China, Singapore, and the U.S.
- Touch ID: TSMC
- Touch ID: Xintec. Based in Taiwan.
- Touchscreen controller: Broadcom. Based in the U.S., with locations in Israel, Greece, the U.K., the Netherlands, Belgium, France, India, China, Taiwan, Singapore, and South Korea
- Wi-Fi chip: Murata. Based in the U.S., with locations in Japan, Mexico, Brazil, Canada, China, Taiwan, South Korea, Thailand, Malaysia, Philippines, India, Vietnam, The Netherlands, Spain, the U.K., Germany, Hungary, France, Italy, and Finland
At best Apple will make the ones for the US market back in the USA (still unlikely) while everything else for other markets will still be made in China.
HOWEVER, it will take more than 4 years before the 1st iPhone rolls off the factory floor , building a factory takes time and by the time it happens Trump will not be in office.
SO, I would think Apple will take the tax cuts, go REAL SLOW in moving anything back to the USA, and work on the fact that the mid terms will go against Trump and they can keep making stuff in China.
Yes, Tim should follow in the footsteps of Trump himself, who blazed the way by moving all the manufacturing of his own products from overseas to the US long ago, right?
And those people are exactly the ones Apple does NOT want to employ
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Wonder why the Mac Pro has stagnated ?
Too costly to make, too costly to refurbish the plant to make new models.
It wasn't a hypothesis made on one company moving manufacturing here...Oh yeah... Because history is riddled with examples of a prosperous company leading a country into hyperinflation merely by opening a manufacturing plant.
Sorry, that is not going to happen because of 1 thing mainly: the huge difference in salaries, favoring China (big profits). The only way would be Apple US factories using robots (made in China) but the objective would fail (more jobs to people in US). So forget it.