Comments on: Winners and losers in the Apple economy Sun, 28 Jul 2013 14:34:09 +0000 hourly 1 By: pbcr Tue, 18 Sep 2012 07:00:54 +0000 Many commentators are worried about skill obsolescence. Goes hand in hand with gadget obsolescence. Hang on to your 1985 iPad and no one gets hurt. Apple’s impressive record is not in generating innovation but generating demand for new trinkets in preference to trinkets you own that are barely six months old. Mainstream media’s excessive focus on phones and tablets and their sales goes a long way to show the extent of stagnation in the real economy worldwide. The real economy comprising sustainable agriculture, cleaner energy sources, urban and rural planning, are crying out for intelligent investment that will also be high-return. One ignores those in preference to glamour trinket peddling at one’s peril. Caused by the corrupt finance markets, obviously.

By: ChKen Fri, 08 Jul 2011 15:11:47 +0000 You wrote, “One of their findings is that in 2006 the iPod employed nearly twice as many people outside the United States as it did in the country where it was invented — 13,920 in the United States, and 27,250 abroad.

You probably aren’t surprised by that result, but if you are American, you should be a little worried”

Worried, why? Without the iPod, would we have those 13,920 US-based jobs?

Your statement reminds of a survey Time Magazine did a long while ago, when Japan was ascendant. They asked Americans something along the lines of which would they prefer:
A) Japan GDP growth of 20% and US GDP growth of 10%, or
B) Japan GDP growth of 5% and US GDP growth of 3%.

The respondents overwhelmingly chose B. This makes no sense to an economist, as choosing A would mean US GDP growth of 10%! However, the respondents would rather get lower GDP growth if they felt that they were losing less ground to another country. They overwhelmingly chose B, because Japan had slower growth.

This is analogous to your statement. We shouldn’t worry that foreigners got 27,250 jobs. We should be extremely pleased that American innovation created 13,920 US jobs, with half of them being high-quality engineering jobs.

By: ChasingGods Thu, 07 Jul 2011 06:28:55 +0000 I cant help but wonder; isn’t America purportedly the forerunners and the flag bearers of Capitalism? If you swear by it, then, you should also realize that it’s (economy)playing by the capitalistic rules. “Survival of the fittest”. You reap what you sow.

World bank, when asked for a loan by India, when we had no money, told us that we needed to open up the economy so that the richer countries with all the glitz and glamor could waltz in and pitch their products/ services.We did. Eventually, we got good at your game. That’s all. Better be prepared to share some of the wealth.

Footnote: I hear the union dude, who cuts grass at GM factory in Detroit,MI earns around USD 10K. My friend, who used to work there, obviously an indian, in suspension design (a guy with a PHd from a US university), earned 4.5K. So quit whining.

By: Ismailtaimur Tue, 05 Jul 2011 07:42:55 +0000 Fears of being Bangalored.

By: JDSoCal Tue, 05 Jul 2011 06:35:21 +0000 Congratulations, you managed to write an entire article about who Apple helps economically, without ever mentioning those Apple has a legal duty to enrich, the whole reason it exists: The stockholders like myself.

Corporations are not jobs programs, Chrystia. They are investments for people like myself. Go check all the pension and mutual funds out there and see how Apple has helped the middle class investor!

By: PhotonCourier Tue, 05 Jul 2011 00:12:08 +0000 Re those 27000 non-US jobs: bear in mind that the level of automation and process improvement in these manufacturing facilities has to do with wage levels: the higher the wage level, the more sense it makes to invest capex and process-improvement though, and conversely. So if these functions were being performed in the U.S., the number of jobs would be far less than 27000, while the wages would be higher, as would (probably) the product prices.

By: Farcaster Mon, 04 Jul 2011 16:18:20 +0000 Free trade with developing countries has caused our economy to stagnate; the housing bubble covered this up. The U.S. economy has only grown about 1% annually for the past decade if you take out the effects of stimulus and the housing bubble; we need 3-4% annual growth to avoid increases in unemployment.

U.S. manufacturing jobs have declined from 17 million in 2000 to 12 million today. Our trade deficit is $650 billion in goods offset by $150 billion surplus in services, for a net $500 billion deficit. At $50k per job, this is about 10 million jobs. By definition¬, this amount must be borrowed to finance the trade deficit.

The U.S. debt to disposable income ratio has risen from 80% in 1990 to 120% today. About 25% of cars were bought with home equity loans in 2007; this source of funding has since dried up, leaving government the main recourse for loans.

Krugman: “In fact, it’s hard to avoid the conclusion that growing U.S. trade with third world countries reduces the real wages of many and perhaps most workers in this country…¬The trouble now is that these effects may no longer be as modest as they were, because imports of manufactured goods from the third world have grown dramatically — from just 2.5 percent of GDP in 1990 to 6 percent in 2006.”

Our blind allegiance to free trade with low-income countries must cause our income to fall; we are attempting to hide this effect with borrowing.

By: eponym Mon, 04 Jul 2011 15:57:29 +0000 This analysis completely overlooks the $17 BILLION in payouts from Apple to the various labels, artists, studios and app developers that provide the content that makes them sell in the first place. Content which overwhelmingly comes from America.

By: doctorjay317 Mon, 04 Jul 2011 10:59:52 +0000 Constant reference to cheap labor is just simplifying the issue. It’s just the surface.
You think those poor Chinese made a “choice” to take those cheap jobs?
Right now in the U.S., those nice numbers in new jobs come in the form of temporary McDonald’s vacancies.
And who’s taking those jobs? You got it, those with no choice.
Those guys are paid USD200/month assembling your i-phone.
If they stay at home, the probably make that much in a year, tilling the dead soil.

By: learneconomics Sun, 03 Jul 2011 20:30:45 +0000 your poor because you can’t start a legit business. rich people have money because they understand finance and economics. they have provided a service or goods to the overall society that you couldn’t provide yourself and without them you would be worse off than you are now. thier are multiple variables on why you are struggling and you want to point a finger at everyone with money.that is not the solution. technology has replaced majority of human labor and economic globalization have made it harder for you as an american to compete because in reality there are people who can do your job for cheaper. it’s retarded for you as an american to say you are entitled to the jobs provided by the wealth. its a global market and the world is getting smarter creating more compition and your lagging behind.