Taxes are a part of it. Regulations as well. One company said it is easier to open a business in China then it is in the USA.
https://www.google.com/amp/www.cnbc...how-govt-regulation-is-driving-us-aboard.html
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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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https://www.google.com/amp/www.cnbc...how-govt-regulation-is-driving-us-aboard.html
Taxes impact behavior. Don't cigarette taxes dissuade users from smoking? Don't tax incentives like the mortgage tax deduction encourage buying a house?
Not just robots taking over assembly but there are many other jobs that would created if the phones were assembled or manufactured here.
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That's an overly simplistic way of describing it. If you take all of your profit and reinvest it you don't escape all tax. There is a reason that Apple Pays the most tax in the world. With your theory they would just hire more workers and build a new store and wouldn't have to pay tax. There would be an Apple Store on every corner.
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A pay check is a pay check. If I build an app and I makes me money then why shouldnt that count as Apple creating a job. It's me using their proprietary platform.
I suppose bringing Apple's manufacturing to the US could have its benefits. It would put people to work, get them off welfare, and allow them to start paying taxes. I believe the manufacturing employees would appear if the opportunity presented itself.
That all sounds good, but I'd be surprised if the government could cut taxes on Apple to such a degree that that US manufacturing would be cheaper than Chinese manufacturing. $15/HR is the target for minimum wage, aka $31,200/yr. Foxconn employees in China make up to $4,800/yr... and that's working the Chinese legal limit of 49hrs/week.
$31,200/yr + benefits vs. $4,800/yr. He's going to have to give them some incredible tax breaks to accommodate that discrepancy. Apple is a business. Their existence is not to provide goods and services, its to make money. They are not a charity and their investors (including me) would agree with that.
If Trump can convince Apple to bring back manufacturing to some degree (beyond the Mac Pro which they probably sell 10/month at this point) without giving them a tax exempt status, I'll be very impressed.
That all sounds good, but I'd be surprised if the government could cut taxes on Apple to such a degree that that US manufacturing would be cheaper than Chinese manufacturing. $15/HR is the target for minimum wage, aka $31,200/yr. Foxconn employees in China make up to $4,800/yr... and that's working the Chinese legal limit of 49hrs/week.
$31,200/yr + benefits vs. $4,800/yr. He's going to have to give them some incredible tax breaks to accommodate that discrepancy. Apple is a business. Their existence is not to provide goods and services, its to make money. They are not a charity and their investors (including me) would agree with that.
If Trump can convince Apple to bring back manufacturing to some degree (beyond the Mac Pro which they probably sell 10/month at this point) without giving them a tax exempt status, I'll be very impressed.
The Mac Pro is made here. No one is saying a company like Foxconn is going to be up and running overnight but it would be great that if over the next 20 years instead of losing jobs to other countries we would gain them from other countries.
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I'd rather be safe then sorry. War time is a different animal.
Also did you know that FDR did this and he was a democrat?
If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck.
As long as the price of the product does not increase I don't care where the phone is made.
If Apple try and spin the fact it's American produced and think this should carry a premium, I will no longer buy their products. It's a buyers market at the end of the day.
If Apple try and spin the fact it's American produced and think this should carry a premium, I will no longer buy their products. It's a buyers market at the end of the day.
alright, well I doubt this will make a huge dent or impact. I've been there, experienced it..couldnt wait for some place to make an opening and had to find those opportunities..those who do, will. some who don't won't. its not an absolute.
(I should let this go ... but I can't)
Apple manufacturing in the U.S. would put people to work ... but get people off welfare? Where do you think Apple does its hiring? At the downtown rescue mission?
Apple's workers would likely be college educated, and technically experienced, not recruited from an unemployment office and looking to pay taxes for the first time in their life.
Apple employs two kinds of people. Highly paid professionals at the top end (corporate) and service jobs at the bottom end (stores).
What's missing is the middle class blue-collar manufacturing job that got outsourced to China.
That's a big reason the middle class is dying in the US.
Here's what the president can't do: Spend Money!
If the budget isn't balanced, you can place the blame squarely on Congress, anybody that took middle school civics should know this, and yet it seems to elude our President Elect, or at least several of his surrogates.
If you think $10 Trillion is a lot of debt, then you'll really be impressed by the next administration when they rubber stamp congressional spending and tax cuts.
All the Foxconn employees working on the assembly line manufacturering iPhones are College Grads?
It's my understanding the Foxconn laborers often come from rural areas to support for their families, much like America's industrial revolution.
This has nothing to do with Democrats versus Republicans. There are plenty of bad policies and actors in both parties.I'd rather be safe then sorry. War time is a different animal.
Also did you know that FDR did this and he was a democrat?
If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck.
According to the powers that be, we will be in a never ending war state whether that is a war on drugs or terror or whatever. What you are really wanting is to give up your freedom. My suggestion is that you go ahead and lock yourself up. Better to be safe in a cage, just in case
Oh, gotchy. I'm sure the jobs would be filled. Maybe not millions, but the US has lost a tremendous number of manufacturing jobs in not a very long time span. You have more and more jobs eliminated due to robots (from manufacturing to store check outs). Look at cities like Detroit with 11% unemployment- or Fresno or Stockton with 15%. We both know how unemployment numbers tend to be flawed as they don't include people who have stopped working. You're telling me there aren't people out who are unemployed, unskilled, and and lack a higher education degree?
No they don't. There has to be a business incentive for Apple to move production to the US. There isn't one right now otherwise Apple would be manufacturing here already.
Yes it would take Apple and other years to do this, and who knows if Trump will even be in power that long?
You're talking about the U-3 Unemployment rate, which measures the total unemployed as a percentage of the civilian labor force. That's the "official" rate but does not reflect the realities of the present economy. The better measure is the U-6 rate that measures total unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor force. That rate stands at about 9.5%
http://www.bls.gov/news.release/empsit.t15.htm
Note how some of the categories in U-6 are defined:
The 4.9% doesn't reflect reality as both Donald Trump and Bernie Sanders have repeatedly pointed out. In addition, the Obama presidency is the first administration in United States history to record seven straight years of annual gross domestic product growth below 3 percent. And a higher percentage of American children live in poverty today than did at the start of the Great Recession. Given this track record, I'd let Trump take a shot a fixing these dismal statistics, because it's clear Obama's policies have not improved anything.
Sorry, I don't get you, bringing back jobs will cause hyper inflation and no growth in production?!
Trump's got the right idea but I think its too late. Manufacturing money goes out to countries like China but the money comes back in other ways when their middle class comes up and demands products from the US and they also spend money here on tourism and other services.
The regulations and taxes should've never been so greedy in the first place. Thats what happens when elected officials have absolutely no knowledge about business and enact "legacy" laws so they can brag about how they 'did something' in D.C.
I really do applaud Trump for trying though, he's a business man, he knows what keeps companies away from the US but like another poster said earlier in the thread, we're getting closer and closer to automated manufacturing. Foxconn already invested in advanced robotics and plan to slash their own workforce in China.
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Its true, morally speaking, spending should be cut to offset those incentives but we can't have it all. I think Trump and Cook know Apple mass production is not coming to China...maybe in another form but not the bread and butter iPhone.
We have to think beyond manufacturing, all of the poorest cities/highest unemployment levels in the US should be immediately become free trade zones so they don't have to send their money to DC and can keep it in their local economy.
America can get back on the right track but the transition needs to be quick and painful in order to see that light at the end of the tunnel. Doing things slowly will never work. Major programs need to be cut or overhauled and spending slashed. Huge tax cuts across the board for everyone need to take place quickly after that to reinvigorate the economy.
New Hampshire has the lowest tax rates across the board in the USA, they have the lowest unemployment rates in the country.
American's money needs to stop being force funneled to DC through the clogged up revolving door of stupidity and waste. Nobody knows how to spend money better than the person that worked hard for it.
America can be great again, Trump has a lot of work but he has one major thing going for him. He isn't a career politician, he's an outsider and has nothing to lose by being a radical change agent. I do wish him luck, for all of our sake.
The regulations and taxes should've never been so greedy in the first place. Thats what happens when elected officials have absolutely no knowledge about business and enact "legacy" laws so they can brag about how they 'did something' in D.C.
I really do applaud Trump for trying though, he's a business man, he knows what keeps companies away from the US but like another poster said earlier in the thread, we're getting closer and closer to automated manufacturing. Foxconn already invested in advanced robotics and plan to slash their own workforce in China.
[doublepost=1479988680][/doublepost]
Its true, morally speaking, spending should be cut to offset those incentives but we can't have it all. I think Trump and Cook know Apple mass production is not coming to China...maybe in another form but not the bread and butter iPhone.
We have to think beyond manufacturing, all of the poorest cities/highest unemployment levels in the US should be immediately become free trade zones so they don't have to send their money to DC and can keep it in their local economy.
America can get back on the right track but the transition needs to be quick and painful in order to see that light at the end of the tunnel. Doing things slowly will never work. Major programs need to be cut or overhauled and spending slashed. Huge tax cuts across the board for everyone need to take place quickly after that to reinvigorate the economy.
New Hampshire has the lowest tax rates across the board in the USA, they have the lowest unemployment rates in the country.
American's money needs to stop being force funneled to DC through the clogged up revolving door of stupidity and waste. Nobody knows how to spend money better than the person that worked hard for it.
America can be great again, Trump has a lot of work but he has one major thing going for him. He isn't a career politician, he's an outsider and has nothing to lose by being a radical change agent. I do wish him luck, for all of our sake.
There are arguments for and against this and we can go on all day but the bottom line is that the USA desperately needs more decent paying jobs for non technical people. That's the bread and butter of the middle class and quite honestly it's the most important demographic in the country. Having a country where there are a handful of super rich folks and everyone else is scraping by is NOT good for this country. If you look back at some of the "booming" times like the 50s through the 80s, you'll see that the middle class was super strong. That means local money gets spent locally. Towns and cities thrived. People were working and paying taxes. Everything flowed from that paradigm. It was great.
Now, when companies are formed, rather than a lot of good jobs being created you have a few 20 somethings becoming overnight trillionaires and a bunch of crappy service level jobs created. Fail. No good. It's just like that now. Need to get back to doing everything here. Even if the cost is higher to companies I suspect they'll get it back via more sales and volume since more people will buy their stuff. I realize that miserable investors hate employees but good paying jobs benefit companies too in the long run.
Use to be that employees and customers came first, then shareholders. Now, shareholders are all that seem to matter. And, they are NEVER happy. Ever.
Now, when companies are formed, rather than a lot of good jobs being created you have a few 20 somethings becoming overnight trillionaires and a bunch of crappy service level jobs created. Fail. No good. It's just like that now. Need to get back to doing everything here. Even if the cost is higher to companies I suspect they'll get it back via more sales and volume since more people will buy their stuff. I realize that miserable investors hate employees but good paying jobs benefit companies too in the long run.
Use to be that employees and customers came first, then shareholders. Now, shareholders are all that seem to matter. And, they are NEVER happy. Ever.
But the thing is, America is already great... Somehow people bought his "America is at rock bottom" B.S during the campaign and here we are.