Wednesday, November 30, 2011

High tech, jobs, and the future

Over at Business Insider (see here) there is a very interesting piece about Apple's new data center in North Carolina (see pic below).


It is high tech, state of the art, huge, and it only employs 50 people.  The author makes the following argument:

It is true that having more companies like Apple would certainly help the US.

But we would need a lot more companies like Apple to make a dent in our unemployment and inequality problems.

Why?

Because Apple also actually exemplifies some of the reasons why we have such huge unemployment and inequality problems:
  • "Digital" businesses like Apple employ far fewer people (per profit) than traditional manufacturing businesses.
  • Apple's 60,000+ jobs are not just in the US--they're spread around the world.
  • Apple's extraordinary ~25% profit margin means that the benefits of its success accrue primarily to a relatively small group of (rich) shareholders rather than a broad base of (middle-class) employees.

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