Apple holding more cash than USA

[Quixote1818]

This is what happens under our current tax system when the top 1% is allowed to hoard almost a trillion dollars while millions look for work and scrape by. All that money just sitting there. And this is just one company our of thousands.


http://www.bbc.co.uk/news/technology-14340470

[Cleita]

1. Although this is one company that does employ

Americans in America in their chain of stores unlike other manufacturers. If we can get them to start manufacturing their products here in the USA, it would be wonderful.

[notadmblnd]

2. And they would manufacture here if they could lock us in the factories and pay us 60 cents a day

But most of us wouldn't tolerate that so they hire in China instead.

[Dreamer Tatum]

3. Yet many here are still enamored of protectionism

Suppose Apple did produce all of its products in the US, paying laborers a fair wage and covering
worker benefits. The price of its product would necessarily increase, its profitability would fall,
and it would be more difficult for Apple to grow its business and hire more workers. This is especially
true if Chinese companies had unfettered access to our retail market. Apple would have a hard time
competing.

Now suppose in our desire to "protect American workers" we place tariffs on Chinese goods to increase
their prices relative to American goods. That makes all prices go up, and consumers are absolutely
worse off.

Protectionism to shield American workers makes us all worse off as consumers, unambiguously.

[originalpckelly]

4. Yeah, that way instead of making things like iPods Americans can make coffee.

You do realize that American workers are American consumers, right, you noodilynoob?

We can find efficiency by eliminating management and letting workplace markets take care of the job. Let the market manage workers, not planners like managers.

[Dreamer Tatum]

5. Then enjoy your high prices and high unemployment. nt

[Name removed]

6. Deleted message

Sub-thread removed by moderator. Click here to review the message board rules.

[Cleita]

13. High prices have nothing to do with what you pay

for employment. Prices are governed by what people are willing to pay for stuff, and what that stuff costs wholesale, nothing else. I was in business at one time and had employees. Every time minimum wage went up, or my rent for that matter, it was not reflected in my prices. My prices were what I could get for my product. If I couldn't sell enough to pay my overhead and make a profit, then I had to go back an analyze where I was. I never had to lay any one off though. I did raise my prices when the wholesale cost of my product went up, but it was across the board because everyone in the same business also raised their prices when that happened. If you can't pay your bills including employment then you close shop. It means the business is unsustainable.

[Fridays Child]

7. Apple could probably manufacture all of its products in the U.S. and...

...pay 100,000 employees fair wages, with benefits, and still have plenty of that nearly one trillion dollars to spare.

[originalpckelly]

8. Um, no, the cash reserves are in the billions and are 76 billion dollars.

They could definitely manage hiring more American workers, that I agree with.

[Fridays Child]

10. I didn't read the article.

The OP referred to the figure of "nearly a trillion," which is substantially more that $76 billion. But even so, assuming an average of $60,000 per employee, $2.8 billion dollars would cover 46,000 workers--the number of Apple employees in 2010. That still leaves a big chunk of its $76 billion reserves to fund manufacturing and administrative facilities in the U.S.

[originalpckelly]

11. Of course, you are right.

I just like to get the numbers right. :P

[Quixote1818]

20. My mistake on it being almost a trillion.

Had forgotten it takes a thousand billions to make a trillion, not 100. I agree with what you just said 100%! :)

[notadmblnd]

12. I wasn't considering protectionism, my concern is with the exploitation of human beings

I would have absolutely no problem with manufacturing overseas if corporations had to treat employees fairly. Fair Trade, not Free Trade. I do believe that more companies would keep jobs here if it weren't for them being able to exploit the labor market in other countries.

[Dreamer Tatum]

17. If production costs were similar everywhere, jobs would come back.

But prices would be higher. Tariffs would magnify the problem and create less competition and therefore less incentive to lower prices.

[originalpckelly]

18. Ah yes, so you want American workers to work for a $1 an hour.

That's probably what the equilibrium would be.

We see your brilliant ideas on display with our nice little recessions.

Tariffs may not be a good idea, but America has to learn a lesson or two here.

[Dreamer Tatum]

21. When did I say that? Show me. nt

[notadmblnd]

22. You know what? I don't really care wha he price of something is if I really want it

And I wouldn't mind making 60 cents an hour if it would pay the rent, utilities, food and put gas in the car.:shrug:

[roguevalley]

14. during the gilded age the fat pigs actually bailed out the country

once.

[Cleita]

15. Only because they knew they too would go down with

the ship. Our fat cats don't seem to be aware of that, or they have a Plan B to fall back on.

[originalpckelly]

19. Their plan B, is more like plan m...

They plan to move.

[PoliticAverse]

9. The US operates at a deficit, why should it have lots of cash lying around ? n/t

[Cal Carpenter]

16. Capitalism, baby!

The state only exists to protect Apple's ability to do this.

'The state' is, sort of ironically, going bankrupt (and the people suffer- AUSTERITY!!1!) because of the all money it spends to protect the interests of capitalist industry by waging wars and ensuring they pay little or no tax on their profit.

It's all trickle-up.

The vast majority of people get poorer and poorer as Apple and just a few hundred other families and corporations own unprecedented proportions of the world's resources and wealth.

This is inevitable. Our economic system is twisted as hell.