BTW, $70 billion is not a really big deal. GE has $120 billion in the bank, mostly overseas.
Not to mention GE has been on corporate welfare due to republican policies for the past 12 years, they pay no tax and get over a billion in tax return. So I suppose you are proud of such things huh mr tea bagger.
Apple has created plenty of jobs in the US. Most of them are pretty high-paying, high-tech jobs. This fetish over manufacturing jobs baffles me.
the problem isnt manufacturing jobs per se, its that there used to be two ways to climb the ladder in this country, university education and hard work...the latter option is all but dead - no company is loyal to its people and no people are loyal to their companies so there is little chance that a 18 year old kid will start on the loading dock and work his way into the corner office by his 30 or 40s is all but gone - we now have those with BS begrees and those without...
I personally think the university system as well as corporate HR theory is messed up in this country...When I was out of work some time ago I was told many times something like "you have better skills than most other candidates but you dont have a BS in computers so we cant interview you for our IT department..."so now I am almost finished with the 4 year scam to drain my savings in exchange for a bullshit certificate that will allow me to make 70k for what I do now for half that...
University is the problem in many ways, not the lack of manufacturing, the lack of a path to work your way off the shop floor and progress in a career path...
WTF? He posted in the wrong thread, let's not just run with it.
Weird. I posted that in another thread because the quoted posts were also in that other (wrong) thread. Now here we all are over here. Forum software go crazy.
I have read this site for a long time (amongst many others) but this is the first time I have felt like signing up to say anything. I am baffled by many of the posts on this thread but I learnt some time ago browsing here that many have inflexible views, refuse to keep an open mind and are really quite aggressive with those who do not share their viewpoints.
To quote Robert Quillen “Discussion is an exchange of knowledge; an argument an exchange of ignorance.”
Thus I will stick to a few thoughts that popped into my head instead.
1) ARM does have other benefits beyond those mentioned. Unlikely Apple would buy ARM but they are ramping up their development of mobile graphics & SoCs for Internet connected televisions (and other devices).
ARM are also based in Cambridge, England and have a strong talent pool and ties with the University. They are in the primary position for talent coming out of the University of Cambridge and the very latest in computer science research.
2) It is possible to start from scratch in a country.
As you will all know Foxconn plan to do exactly that in Brazil, lack of manufacturing infrastructure or expertise is not the reason they choose not to manufacture in the US. That is down primarily to wages. (I hope the BBC link works in your country of residence, apologies if not).
3) Wages are rising quite fast in China, pre-suicides the reported rate for a Foxconn worker was 900 RMB and is now 2000 RMB ($310 a month). You will appreciate that is quite the rise. Indeed the average rise in the minimum wage levels across China in 2010 was 22.5%.
With inflation at 5.5% and food inflation at 11.7% in China this pressure will only accelerate further in the next year or two.
In addition to this to combat food inflation (and under pressure from the US) China is relaxing its hold of the value of the Yuan. This year alone it has gained about 10% on the dollar (last time I checked, may not be current) and is said to be undervalued by at least 40%. This would make the current value of Foxconn wages $434 a month. Considering the current low interest rates in the developed world driving investment to China the undervaluation estimate on the Yuan may be conservative.
Recently in the Chinese apparel making factories there has already been a shortage of workers and when the domestic market catches light in China (and it will) this problem could well send wages rocketing as factories struggle to meet demand.
This over a period of time will make manufacturing in America more appealing but initially will drive factories to Latin America, India and then the last source of cheap labour Africa. People in Nigeria for example earn about $330 Per year.
So in short low tech assembly will probably shift around the world a bit until China & India become huge consumers. At that point in time the US could see a resurgence in this area or we could see rapid development of further automation.
So despite many many people being out of work, there are potentially jobs for some of them but no one has the right skills set. How much growth is this stalling in these businesses?, how many other low skill jobs would that growth have created?.
The US (and UK for that matter) has under invested in education and the future of its economy. It has workers with low skills or the wrong ones. The economy has moved to hi tech and the education system has not caught up. Despite a growing debt unless there is significant investment and realignment to upskill then other countries will continue to catch up.
People who are better educated have better health, commit less crimes, are less of a burden on the state and they create jobs. Short term investment pain for long term gain but unfortunately most Governments do not think further than making sure they are voted in at the next election. Why go for long term when they won't be in office to reap the glory, so they go for short term populist wins instead.
"The rich could be less rich"? That is a very slippery slope. How rich is rich? How much must you, via the force of government, steal from the rich in order to "right" all of society's problems?
When you start enacting more socialistic policies and so-called "wealth redistribution" suddenly the rich become less so, the power of government grows, the incentives for creating wealth disappear and you become Cold War Russia.
Yeah I figured people would immediately scream socialism, communism, or some other bull.
We are already living with wealth distribution, it's called working and taxes and it's good for everyone. The problem is that the separation of rich and poor and balance of equality is off
Yeah I figured people would immediately scream socialism, communism, or some other bull.
Well...if it walks like a duck and quacks like a duck...
Quote:
Originally Posted by frankie
We are already living with wealth distribution, it's called working and taxes and it's good for everyone.
What do you mean by "wealth distribution?" Because when most people refer to wealth redistribution" they are talking about the state taking $ from one group and giving to another. Working does not fit under that definition, but taxes do.
Yeah I figured people would immediately scream socialism, communism, or some other bull.
We are already living with wealth distribution, it's called working and taxes and it's good for everyone. The problem is that the separation of rich and poor and balance of equality is off
The problem with wealth equality is that the super rich get most of their income from capital gains and dividends, not cash. These are taxed differently, and especially during the bush years were dramatically lower. The 400 richest americans routinely during the bush era had tax rates of around 20%.
If you really want more manufacturing in the US, then lobby for more employment deregulation, including any special legal privileges granted to unions.
But, in the end, this is the dynamic that happens. There are a wide array of jobs in the US that don't fall into the categories of "flipping burgers" (which are entry level jobs for teenagers) and high-tech doctorate jobs in hi-tech and bio-tech. Most of the people I work with are all pretty middle class. We all earn middle class wage and live in middle class homes. None of us manufacture anything. There are also tons of people working in manufacturing in the US, they are just manufacturing much higher value things than the stuff we outsource to places like China and Malaysia.
What we need is for the government to get out of the way of business and the economy will grow and create tons of jobs. But most of these will not be the jobs from yesteryear...and that's probably going to be okay.
What a bunch of BS.
The Effective Corporate Tax Rate is the lowest in the world, here in the States. If you can't seem to hire more staff than either you choose not to or you have incompetent Accounting working for you, or you don't own a business and should keep your mouth quiet and research more about how pathetic it is that the US eroded it's own base to allow off-shoring of trillions for short-term profits.
Here is the real kicker: China has to raise its own rates sooner rather than later. The same with Brasil and South America. The offshore attitude to every where but the US is coming full circle.
The biggest consumption base in the globe is the US. The best action the Congress could take would be to draft law that overturns the mid-1930's Supreme Court ruling that Corporations are due the right to petition the government for a redress of grievances and with none of the responsibilities inherent in doing so. Lobbying will then be illegal and real competition can begin. You want effective change and competition, you'll have to realize that yes, the second wave of Manufacturing will come, but on a global scale. The second wave of the industrial revolution will happen and the US will be on the forefront, once again.
That will require manufacturing, but it will not be the same. Without the Government R&D Grants into Biotech, Nanoscience, Advanced Materials, Smart Grids, etc., the corporations wouldn't know their head from their rear end.
The Public/Private partnerships of major US Universities with LLCs started by these same universities is what scares the hell out of the Biotech industries--they don't have the IP owned by these Universities who finally woke up and decided to leverage what they educate and research.
BioMass energy is beginning it's clinical Trials at WSU/PNNL/ and the Department of Energy where any biomass is used to generate gasoline, diesel and jet fuel. It was just announced and they expect distribution and refinement ready for world-wide use by 2013. You wanna see how fast the US Oil Industry is going to cry foul when that happens?
It's a Public/Private partnership. The pure private approach has advanced the world on a time frame they decide leaving Science waiting decades for research already verified to see the light of day.
The only industry with this exception has been the IT Industry, but then again the IT Industry exists purely because of Government R&D.
Keep writing about what you surely know little about. History has a way of exposing ignorance and you seem to be swimming in it.
We'll have a chance again with the way the dollar is going. I think eventually manufacturing will be attractive here once the dollar has depreciated enough and the yuan has appreciated. Either that or chinese factories will have to move to the rural inland areas.
Comments
Apple should be spending more on research and development.
Totally different industry. For the tech industry, it's HUGE.
WTF? He posted in the wrong thread, let's not just run with it.
BTW, $70 billion is not a really big deal. GE has $120 billion in the bank, mostly overseas.
Not to mention GE has been on corporate welfare due to republican policies for the past 12 years, they pay no tax and get over a billion in tax return. So I suppose you are proud of such things huh mr tea bagger.
Or they could manufacture their products in the US and create some jobs.
I agree 100%.
the problem isnt manufacturing jobs per se, its that there used to be two ways to climb the ladder in this country, university education and hard work...the latter option is all but dead - no company is loyal to its people and no people are loyal to their companies so there is little chance that a 18 year old kid will start on the loading dock and work his way into the corner office by his 30 or 40s is all but gone - we now have those with BS begrees and those without...
I personally think the university system as well as corporate HR theory is messed up in this country...When I was out of work some time ago I was told many times something like "you have better skills than most other candidates but you dont have a BS in computers so we cant interview you for our IT department..."so now I am almost finished with the 4 year scam to drain my savings in exchange for a bullshit certificate that will allow me to make 70k for what I do now for half that...
University is the problem in many ways, not the lack of manufacturing, the lack of a path to work your way off the shop floor and progress in a career path...
Apple doesn't need to buy any of those companies because they aren't any threat. It would be a waste of money.
The next step will be creating their own processor architectures or buying Intel.
buying AMD, its cheaper and they get better preformance/dollar, so they can make more profit lol... not to mention graphics *IGPU or GPU*
but, er wouldn't this be "anti competitive"
i think eventually they should just buy a state of the US government lol... probably can get them dirt cheap soon....
WTF? He posted in the wrong thread, let's not just run with it.
Weird. I posted that in another thread because the quoted posts were also in that other (wrong) thread. Now here we all are over here. Forum software go crazy.
Why? Do the Americans work harder? or better? or cheaper? Or you want Apple be run like a charity?
One thing is certain - everyone who thinks moving jobs to where you get less output per dollar has NEVER created a job themselves.
Or they could manufacture their products in the US and create some jobs.
i prefer child labour be done outside the US
To quote Robert Quillen “Discussion is an exchange of knowledge; an argument an exchange of ignorance.”
Thus I will stick to a few thoughts that popped into my head instead.
1) ARM does have other benefits beyond those mentioned. Unlikely Apple would buy ARM but they are ramping up their development of mobile graphics & SoCs for Internet connected televisions (and other devices).
ARM are also based in Cambridge, England and have a strong talent pool and ties with the University. They are in the primary position for talent coming out of the University of Cambridge and the very latest in computer science research.
2) It is possible to start from scratch in a country.
http://www.bbc.co.uk/news/business-13058866
As you will all know Foxconn plan to do exactly that in Brazil, lack of manufacturing infrastructure or expertise is not the reason they choose not to manufacture in the US. That is down primarily to wages. (I hope the BBC link works in your country of residence, apologies if not).
3) Wages are rising quite fast in China, pre-suicides the reported rate for a Foxconn worker was 900 RMB and is now 2000 RMB ($310 a month). You will appreciate that is quite the rise. Indeed the average rise in the minimum wage levels across China in 2010 was 22.5%.
http://www.zerohedge.com/article/wag...m-salary-hikes
With inflation at 5.5% and food inflation at 11.7% in China this pressure will only accelerate further in the next year or two.
In addition to this to combat food inflation (and under pressure from the US) China is relaxing its hold of the value of the Yuan. This year alone it has gained about 10% on the dollar (last time I checked, may not be current) and is said to be undervalued by at least 40%. This would make the current value of Foxconn wages $434 a month. Considering the current low interest rates in the developed world driving investment to China the undervaluation estimate on the Yuan may be conservative.
Recently in the Chinese apparel making factories there has already been a shortage of workers and when the domestic market catches light in China (and it will) this problem could well send wages rocketing as factories struggle to meet demand.
This over a period of time will make manufacturing in America more appealing but initially will drive factories to Latin America, India and then the last source of cheap labour Africa. People in Nigeria for example earn about $330 Per year.
http://wiki.answers.com/Q/What_is_th...ome_in_Nigeria
So in short low tech assembly will probably shift around the world a bit until China & India become huge consumers. At that point in time the US could see a resurgence in this area or we could see rapid development of further automation.
4) The US actually has a shortage of workers!
http://www.britannica.com/blogs/2010...kill-shortage/
So despite many many people being out of work, there are potentially jobs for some of them but no one has the right skills set. How much growth is this stalling in these businesses?, how many other low skill jobs would that growth have created?.
The US (and UK for that matter) has under invested in education and the future of its economy. It has workers with low skills or the wrong ones. The economy has moved to hi tech and the education system has not caught up. Despite a growing debt unless there is significant investment and realignment to upskill then other countries will continue to catch up.
People who are better educated have better health, commit less crimes, are less of a burden on the state and they create jobs. Short term investment pain for long term gain but unfortunately most Governments do not think further than making sure they are voted in at the next election. Why go for long term when they won't be in office to reap the glory, so they go for short term populist wins instead.
Anyhow less of my ramble! Enjoy your weekend.
"The rich could be less rich"? That is a very slippery slope. How rich is rich? How much must you, via the force of government, steal from the rich in order to "right" all of society's problems?
When you start enacting more socialistic policies and so-called "wealth redistribution" suddenly the rich become less so, the power of government grows, the incentives for creating wealth disappear and you become Cold War Russia.
Yeah I figured people would immediately scream socialism, communism, or some other bull.
We are already living with wealth distribution, it's called working and taxes and it's good for everyone. The problem is that the separation of rich and poor and balance of equality is off
Yeah I figured people would immediately scream socialism, communism, or some other bull.
Well...if it walks like a duck and quacks like a duck...
We are already living with wealth distribution, it's called working and taxes and it's good for everyone.
What do you mean by "wealth distribution?" Because when most people refer to wealth redistribution" they are talking about the state taking $ from one group and giving to another. Working does not fit under that definition, but taxes do.
They could spend a little bit of it developing a XMac. Just a suggestion.
Thanks for bringing some levity to the thread.
Yeah I figured people would immediately scream socialism, communism, or some other bull.
We are already living with wealth distribution, it's called working and taxes and it's good for everyone. The problem is that the separation of rich and poor and balance of equality is off
The problem with wealth equality is that the super rich get most of their income from capital gains and dividends, not cash. These are taxed differently, and especially during the bush years were dramatically lower. The 400 richest americans routinely during the bush era had tax rates of around 20%.
http://sociology.ucsc.edu/whorulesam...er/wealth.html
If you really want more manufacturing in the US, then lobby for more employment deregulation, including any special legal privileges granted to unions.
But, in the end, this is the dynamic that happens. There are a wide array of jobs in the US that don't fall into the categories of "flipping burgers" (which are entry level jobs for teenagers) and high-tech doctorate jobs in hi-tech and bio-tech. Most of the people I work with are all pretty middle class. We all earn middle class wage and live in middle class homes. None of us manufacture anything. There are also tons of people working in manufacturing in the US, they are just manufacturing much higher value things than the stuff we outsource to places like China and Malaysia.
What we need is for the government to get out of the way of business and the economy will grow and create tons of jobs. But most of these will not be the jobs from yesteryear...and that's probably going to be okay.
What a bunch of BS.
The Effective Corporate Tax Rate is the lowest in the world, here in the States. If you can't seem to hire more staff than either you choose not to or you have incompetent Accounting working for you, or you don't own a business and should keep your mouth quiet and research more about how pathetic it is that the US eroded it's own base to allow off-shoring of trillions for short-term profits.
Here is the real kicker: China has to raise its own rates sooner rather than later. The same with Brasil and South America. The offshore attitude to every where but the US is coming full circle.
The biggest consumption base in the globe is the US. The best action the Congress could take would be to draft law that overturns the mid-1930's Supreme Court ruling that Corporations are due the right to petition the government for a redress of grievances and with none of the responsibilities inherent in doing so. Lobbying will then be illegal and real competition can begin. You want effective change and competition, you'll have to realize that yes, the second wave of Manufacturing will come, but on a global scale. The second wave of the industrial revolution will happen and the US will be on the forefront, once again.
That will require manufacturing, but it will not be the same. Without the Government R&D Grants into Biotech, Nanoscience, Advanced Materials, Smart Grids, etc., the corporations wouldn't know their head from their rear end.
The Public/Private partnerships of major US Universities with LLCs started by these same universities is what scares the hell out of the Biotech industries--they don't have the IP owned by these Universities who finally woke up and decided to leverage what they educate and research.
BioMass energy is beginning it's clinical Trials at WSU/PNNL/ and the Department of Energy where any biomass is used to generate gasoline, diesel and jet fuel. It was just announced and they expect distribution and refinement ready for world-wide use by 2013. You wanna see how fast the US Oil Industry is going to cry foul when that happens?
It's a Public/Private partnership. The pure private approach has advanced the world on a time frame they decide leaving Science waiting decades for research already verified to see the light of day.
The only industry with this exception has been the IT Industry, but then again the IT Industry exists purely because of Government R&D.
Keep writing about what you surely know little about. History has a way of exposing ignorance and you seem to be swimming in it.
Manufacturing on this scale doesn't work in any highly developed economy. It would be "nice" if it did. But you might as well wish for magic unicorns.
How do Gemany and Japan do it?
What a bunch of BS.
Keep writing about what you surely know little about. History has a way of exposing ignorance and you seem to be swimming in it.
Interesting how well these two statements framed your entire post.
How do Gemany and Japan do it?
We'll have a chance again with the way the dollar is going. I think eventually manufacturing will be attractive here once the dollar has depreciated enough and the yuan has appreciated. Either that or chinese factories will have to move to the rural inland areas.