“What should Apple Corp do?
They, and their manufacturing subsidiary employ some 700 thousand people in China I believe. So, is Apple good? Or is Apple bad?”
Apple is neither good nor bad. It is acting in the best interests of its shareholders, as perceived by management. Management develops its strategy and deploys resources based on market forces and government incentives/disincentives. The 25 year US experiment with open markets, while its trading partners continue acting in their self interest with mercantilists trade policies, has resulted in Apple deploying a huge segment of its supply chain in Asia. From its Asian, primarily Chinese, supply chain it supplies its marketing organizations in Asia, the Americas, Europe and other regions.
There should be a distinct difference between the strategies of corporations and the strategies of government. What is good for GM (or Apple) is not necessarily good for America. China understands this concept. Unfortunately the US government today does not seem to understand how to use its tax and trade policy to further the long term security interests of the nation and promote the general welfare of the people. Instead our nation’s economic policies promote the welfare of large multinational corporations and a few too big to fail Wall Street banks at the expense of job creating small business and middle class citizens. Witness the destruction of the dollar and the savings of the middle class via the Federal Reserve easy money policies, the fiscal irresponsibility of the federal government, and regulatory policies specifically designed to force production offshore. Meanwhile the manufacturing base continues to erode and with it the tax base and the potential for the next generation to enjoy a middle class lifestyle.
Used to be for the most part shares were owned by those who lived in the home country of the Corporation. This is no longer the case, now shares are owned globally.
I agree with probably 75% of what you said…maybe more. I would only quibble a tad with the following:
I say Apple is good, because they still produce a lot of jobs and wealth in America, not to mention satisfied American customers. Altho I do agree in principle with the “neither good nor bad” as a generality. And yes, Apple, like every other company, has to act in the interests of their stockholders, public or private, because they are the reason the company exists in the first place.
I say that the main problems with our mfg base are taxes, regulations, unions and welfare benefits that skew our job market. I think the multinational corp stuff is way over blown in your estimation, and I think you greatly underestimate the devastating impact of the rest of my list.
Many off shoring companies are way too small to be part of that group, but they don’t have the lawyers to cut thru the EPA and OSHA and zoning and unions and all of that. The jobs will return by way of small biz, and believe me, small biz is concerned about the stuff I mentioned. I know. I am small biz.
But overall I think you make some great points….and thanks for not calling me a Maoist and a commie and a Chinese handler and so on……..