
A reader writes:
Further to your discussion about the iPhone and the profitability of international outsourcing, I recommend this article from Slate. Simply, what OECD residents perceive as gross maltreatment of workers ($4/day wages, long hours, poor work conditions) is actually raising living standards in these places, compared to subsistence farming. So, if in our desire to protect American workers, we end up reducing the living standards for people who actually have to worry about starving, are we willing to make that trade off? Perhaps we are, or should be, but nothing occurs in isolation.
Another argues along those lines and more:
* The notion that the goal of US policy or political pressure should be to reduce Apple's profitability is sickening.
Apple is one of the country's most successful companies and an engine of growth, productivity and higher living standards. That at least one of your readers sees this as reason to target the company is deeply disturbing. If your readers really want less profitability, tell them to buy some stock and then vote at the company meetings for Apple to impoverish itself as company policy.
* What's with all of the economic nationalism? Are your readers a bunch of Pat Buchanan acolytes? Are Americans more deserving of jobs than the Chinese? Isn't the left supposed to have a more cosmopolitan outlook?
* While one of your readers says that manufacturing in the US could be offset by a "modest price increase" (how do they know it would only be modest?), this would make smartphones less affordable. And guess who disproportionately relies on smartphones for internet access? The poor. Higher prices also mean fewer smartphones sold and thus fewer jobs. Furthermore, every extra dollar spent buying a smartphone is one less dollar available to purchase other products and support other jobs.
* Lastly, if you want some serious economic analysis of Apple and its overseas production, you should read these links.
Getty offers a counterargument of sorts:
Students protest with model effigies of workers who have committed suicide at Foxconn in China during the companies' AGM in Hong Kong on June 8, 2010. The corporation Foxconn, which makes the Apple iPhone, has offered workers a large pay increase as it tries to deal with a number of suicides at the factory. By Mike Clark/AFP/Getty Images.