Guardian: Apple would still be highly profitable if production was in U.S.

[Ideologue]

Solution: tariffs.  Or nationalization.

[Berkut]

Guardian thinks that for profit companies should be run for the benefit of the employees, Film at 23.

No, that is not at all what they are saying.

I don't necessarily agree with what they ARE saying, but it certainly is nothing as simplistic as some call to turn Apple into a employee owned company or something like that.

They are saying that the current "best practices" business model, as exemplified here by Apple, results in the continued concentration of created wealth into the very top tier of wealth holders. It is a good example of how our current system continues to concentrate wealth.

If you think that is a good thing, then I suppose you would conclude that this is just fine.

If you think that the continuing reality that over the last several decades we have seen the top few percent of society is amassing a larger and larger percentage of societies wealth and income, while those not in that top few percent are losing their share of relative wealth to those top few percent, then the article is a good example of one way in which this is occurring.

I don't know about the solution though - the simple fact is that our system is setup to reward those who run businesses and make these decisions for making exactly these kinds of decisions. A vain appeal to altruism is clearly not going to change anything.

[Syt]

So wait a corporation's behavior is motivated by a desire to maximize profits? 

But it's Apple, the Guardians of Good, Protectors of Hipsters!

[Syt]

A vain appeal to altruism is clearly not going to change anything.

Depends on whether that altruism (either improving factory conditions in PRC or moving production to U.S.) generates enough goodwill to increase the value of the brand (and sales) enough to make up for higher costs.

[CountDeMoney]

So where are the GOPtards screaming OMG TEH UNIONS WOULD DRIVE UP IPAD COSTS TO $451,514,674?

[crazy canuck]

The article (like many others) ignores a major dynamic of what is going on. Corporate taxes in the US are 35% plus state and local. Taxes in China vary, but are much less.

When an iphone is sold in the US, which taxing authority has jurisidiction over the profits realized from that sale?

[Valmy]

I guess he is talking about property taxes and that sort of thing, granted those would not be related to the corporate tax rates and alot of states would give them tax breaks.

[Oexmelin]

I don't know about the solution though - the simple fact is that our system is setup to reward those who run businesses and make these decisions for making exactly these kinds of decisions. A vain appeal to altruism is clearly not going to change anything.

Surely those who run businesses will soon come up with a system, not based on altruism, which reduces their own wealth in order to favour redistribution - a system which will not involve state regulation, no reform of the tax codes, no raises on taxes on capital, no inheritance tax, no luxury tax, no protectionism, no public health care, no free education, no welfare, no unions, no true fight against tax evasion or international money laundering, no toleration of public protest, no strikes, no nationalisations, no publically funded political parties. After all, all of these things hinder business, and punish entrepreneurial spirit, and we wouldn't want those jobs to flee elsewhere.

[crazy canuck]

I don't know about the solution though - the simple fact is that our system is setup to reward those who run businesses and make these decisions for making exactly these kinds of decisions. A vain appeal to altruism is clearly not going to change anything.

Surely those who run businesses will soon come up with a system, not based on altruism, which reduces their own wealth in order to favour redistribution - a system which will not involve state regulation, no reform of the tax codes, no raises on taxes on capital, no inheritance tax, no luxury tax, no protectionism, no public health care, no free education, no welfare, no unions, no true fight against tax evasion or international money laundering, no toleration of public protest, no strikes, no nationalisations, no publically funded political parties. After all, all of these things hinder business, and punish entrepreneurial spirit, and we wouldn't want those jobs to flee elsewhere.

Let us hope you vision of the future is at least partially correct.   

[CountDeMoney]

I guess he is talking about property taxes and that sort of thing, granted those would not be related to the corporate tax rates and alot of states would give them tax breaks.

No kidding;  the concept of taxes for commercial industry being detrimental to domestic production is such a fucking myth.  Any state in the Union would give Apple a ten-year lease with a tax amount of a single dollar.

[Valmy]

Surely those who run businesses will soon come up with a system, not based on altruism, which reduces their own wealth in order to favour redistribution - a system which will not involve state regulation, no reform of the tax codes, no raises on taxes on capital, no inheritance tax, no luxury tax, no protectionism, no public health care, no free education, no welfare, no unions, no true fight against tax evasion or international money laundering, no toleration of public protest, no strikes, no nationalisations, no publically funded political parties. After all, all of these things hinder business, and punish entrepreneurial spirit, and we wouldn't want those jobs to flee elsewhere.

We have all those things except the nationalization part and the jobs still left for China

But anyway our government is so corrupt any attempt to craft legislation to keep jobs here would just result in even more going abroad.

[derspiess]

We have all have all those things except the nationalization part and the jobs still left for China

But anyway our government is so corrupt any attempt to craft legislation to keep jobs here would just result in even more going abroad anyway.

I think we need to invest in more green jobs.

[CountDeMoney]

I think we need to invest in more green jobs.

I think you're trolling.  Trolls are green.

[crazy canuck]

Jaron can save us all?

[Berkut]

Surely those who run businesses will soon come up with a system, not based on altruism, which reduces their own wealth in order to favour redistribution - a system which will not involve state regulation, no reform of the tax codes, no raises on taxes on capital, no inheritance tax, no luxury tax, no protectionism, no public health care, no free education, no welfare, no unions, no true fight against tax evasion or international money laundering, no toleration of public protest, no strikes, no nationalisations, no publically funded political parties. After all, all of these things hinder business, and punish entrepreneurial spirit, and we wouldn't want those jobs to flee elsewhere.

We have all have all those things except the nationalization part and the jobs still left for China

But anyway our government is so corrupt any attempt to craft legislation to keep jobs here would just result in even more going abroad anyway.

I don't think the solution is government regulation or even legislation that is as ham-handed as "Thou shalt get a tax break for jumping through these hoops..." That doesn't seem to work.

What we need to do is change the system in some more fundamental manner such that we do not see these perverse incentives where the people who make decisions are rewarded for making decisions that are largely detrimental to society as a whole.

Hell, I don't even know if an actual solution is even possible. I can't think of even how to start.

But I do NOT believe that government regulation is the answer, at least not in any direct manner.