Monday, February 6, 2012

Foxconn, Apple, Microsoft, and American Manufacturing Jobs

CNN had a report on Foxconn, US Jobs, and Apple and Microsoft.  Briefly the report notes that Foxconn, a major supplier for Apple and Microsoft, has very poor working conditions.  Apple and Microsoft, as one would expect, released statements that trivialized the report.  Of course, it's easy enough to release corporate statements.  Undoing facts is a much more difficult proposition.


It's easy for companies to ship jobs to low cost Asian suppliers is the only criteria is cost. But is that the only criteria a company should have?  The short answer common sense answer is no it's not.  Corporations are creations of society licensed by government and given certain extraordinary rights in law.  They are not a law unto themselves or created from on high.  Consequently, corporations have responsibilities as well as rights.  There was a time in the United States when corporate social responsibility was much more common.  Perhaps it's time we, through our government, require more from our corporations.

There is another reason to avoid the trap of low cost as the only criteria.  By manufacturing in China Apple creates jobs in China at wages that do not support sales in China.  Apple damages the US middle class the principal driver of consumption and economic growth.  Apple destroys the very market it depends on for sales!  While offshoring jobs may work short term, it guarantees long term market failure.


Common Sense wonders should US consumers and businesses continue to do business with companies that have suppliers with near slavery working conditions?  The short answer is no we shouldn't.  It's time to stop buying Apple and Microsoft products and turn to products made by suppliers with reasonable working conditions that pay living wages.  Made in America is a common sense idea if you would like to see the return of the American middle class, improved economic growth, and jobs.

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