[tw]

Originally Posted by Undertoad

Buck fifty an hour, live at the company dorm, 72-hour work week. Yes, these do not sound like "American" jobs... post labor movement that is.

The article states bluntly that labor is only a tiny part of costs. For example, iMacs (and other PCs) that cost $22 in America cost $6 in China. And both sell for $thousands with $hundreds in profits. Labor costs are virtually zero in both countries. But in America, technological abilities no longer exist. Shenzhen, China does innovation no longer possible in America.

Wall Street Journal was blunt about this. A CT coil manufacturer foolishly thought as UT posted. At $2 per hour, he would make a fortune in Mexico. Then learned costs were less when using $10 per hour labor in CT. Completely opposite of what UT repeatedly said. He returned to CT years later to save his company. Because labor costs are relevant when myths replace facts. When spread sheets and other myths replace industrial knowledge. American labor that costs five times more money means lower costs. Contrary to sound bytes.

Same myth was promoted by GM. GM's higher costs were not due to unions. That myth was also called brainwashing. Labor is a tiny part of each car - as has been posted with numbers at least five times previously. GM's cars cost more to build than a Mercedes Benz because GM cars were that poorly designed. Took almost twice as much labor to assemble due to insufficient technical knowledge in GM's management.

Apple executives were blunt about something we who do this stuff have been seeing and saying for decades. America has less and less technical abilities every decade. Most of an Apple cannot be done in America. Labor costs are irrelevant. How blunt must the NY Times article be?

What the NY Times did not say. The Silicon Valley discusses ICs. Not integrated circuits. Indians and Chinese who are now more than 50% of new employees. And paid same wages. Why? Because the Silicon Valley has trouble finding Americans with sufficient education and knowledge. Those educated by sound byte myths claim those ICs are hired because they cost less. Nonsense. They are paid same.

A problem so severe that most of what makes an iPhone can no longer be manufactured in America. Apple executives were blunt about it. And still, some ignore facts to instead blame labor cost.

Examples have been posted for years. Many educated by MBA myths blame labor costs rather than insufficient technical knowledge. Too many Americans are educated in communication, finance, law, or business schools. Educated in how to sell off America's wealth while doing nothing productive. Labor costs explain none of this. As Apple executives were so blunt about.

He had to go to Shenzhen, China to find a solution not possible in America. How could a fact made so often and so obvious be ignored?