Its called “race to the bottom” and is no way to run a business. Apple could and can build here and still make a profit. They just don’t.
It’s not just the economics of building here, it’s that no one knows what Congress will next. It only takes one bill or ruling to make a billion dollar factory idle.
race to the bottom? You mean race for greater and great efficiency. Thats exactly how we want business to be run, to allocate global resources efficiently in the most profitable manner. This signals to the rest of the market, that this business is doing the right thing and that consumers are rewarding this business with more profit, thus encouraging more investment and competition.
Well, yes Apple could build it in the US, but then go bankrupt if one of their product don’t turn out well. Way too risky. Plus not every company is like Apple that can sell their product at such huge mark up based on their brand name. Majority of business out there have very low mark up
Take for example GM or Crysler. These companies are literally one product line from bankruptcy. They invest all their capital into a product and if that product line don’t become profitable, they’re screwed. Its good that Apple is making a lot of profit, so that they could experiment with various investments and not become one product line from bankruptcy
For that absurd assertion, you need to come up with a falsifiable hypothesis, no matter how weak. I would be wiiling to entertain the notion that they don't want to strengthen American labor unions by building here for fear of rising costs down the line. Any ideas?