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My aim is not political with this website, but when dealing with a sociopolitical issue like economics, it may occasionally sneak its way into my posts. Today is one of the days when I must use the yearlong promise to buy only American goods as a proverbial soapbox to give my opinion.
The New York Times published an alarming article this past Saturday (January 21, 2012) about the production of the Apple iPhone. The basic premise of the article was that Apple, a company that used to pride itself on its American factories, now produces its products overseas. The most sobering information in the article was that Apple executives believe production of products stateside is simply not viable in the current market. In their eyes, “Made in the USA” is not possible because the American worker simply isn’t up to snuff in these types of manufacturing jobs.
Excerpts from the New York Times “How the U.S. Lost Out on iPhone Work”
It isn’t just that workers are cheaper abroad. Rather, Apple’s executives believe the vast scale of overseas factories as well as the flexibility, diligence and industrial skills of foreign workers have so outpaced their American counterparts that “Made in the U.S.A.” is no longer a viable option for most Apple products.
Apple executives say that going overseas, at this point, is their only option. One former executive described how the company relied upon a Chinese factory to revamp iPhone manufacturing just weeks before the device was due on shelves. Apple had redesigned the iPhone’s screen at the last minute, forcing an assembly line overhaul. New screens began arriving at the plant near midnight. A foreman immediately roused 8,000 workers inside the company’s dormitories, according to the executive. Each employee was given a biscuit and a cup of tea, guided to a workstation and within half an hour started a 12-hour shift fitting glass screens into beveled frames. Within 96 hours, the plant was producing over 10,000 iPhones a day. “The speed and flexibility is breathtaking,” the executive said. “There’s no American plant that can match that.”
It’s believable that a plant in the U.S. would not be able to pull off that type of performance. In my opinion, this type of output is not feasible because of human rights standards, not labor quality standards. This seems to be a clear exploitation of people who are unfortunately willing to live in on-site work dormitories and work marathon hours on last minute notice.
The article continues…
But while Apple is far from alone, it offers a window into why the success of some prominent companies has not translated into large numbers of domestic jobs. What’s more, the company’s decisions pose broader questions about what corporate America owes Americans as the global and national economies are increasingly intertwined. “Companies once felt an obligation to support American workers, even when it wasn’t the best financial choice,” said Betsey Stevenson, the chief economist at the Labor Department until last September. “That’s disappeared. Profits and efficiency have trumped generosity.”
“Profits and efficiency,” not “the speed and flexibility,” are the real driving force behind outsourcing. American loyalty aside, this lack of candor from Apple executives is demeaning to us the consumer.
This is in no way an indictment of Apple. I am a user of Apple products and don’t harbor any unique ill will towards the Apple corporation. I do believe that this article uses Apple perfectly to express my main motive in creating this website and the journey it details. The US Bureau of Labor Statistics has the current US unemployment rate at 8.5%. My and Apple’s home state of California is at an alarming 11.3%. If just the iPhone alone was manufactured here, those rates would decrease. Apple would also inevitably lose money. Apple would have to consciously put human rights and domestic needs ahead of profit. I hope to live in a country where one day that decision is made. “Apple’s an example of why it’s so hard to create middle-class jobs in the U.S. now,” said Jared Bernstein, who until last year was an economic adviser to the White House.
“If it’s the pinnacle of capitalism, we should be worried.”
Read the entire New York Times article.
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