Apple (NASDAQ: AAPL), for all its financial strength and bluster, is succumbing to the diktats of the Trump administration. The company's response to Trump's call for in-shoring work to the United States could create many jobs in the country. Tim Cook, the CEO of Apple, has announced of a $1 billion fund for investing in cutting edge manufacturing companies within the country. It is slated to announce its maiden investment in the latter part of May. Cook said that such an investment in manufacturing creates a ripple effect in the economy and a number of jobs are created as a result.
The hard light of economics points out the truth in Cook's words. As per National Association of Manufacturers, every dollar invested in manufacturing results in $1.81 being injected back into the American economy. Brian Raymond, Director of Innovation Policy, NAM echoes this. He said that a billion dollar investment has a massive multiplier effect surrounding it.
President Trump, however, did not envisage this kind of development during his campaign trail or when he ascended to the highest post of the land. There was a time when he asked Apple to move its manufacturing operations back to the United States from other countries. Experts were against this idea. Their concern is that such a step will bring easily automated, low-skill and low-wage jobs back into the US. If this happens, Apple's expansion would be crippled. It will also have a detrimental effect on the jobs which Apple already generates in America. These include the US suppliers, app developers, and retail employees. The company also employs 80,000 in its Cupertino workspace.
Ripple across industries
Apple's $1 billion fund is more than a marketing strategy. It is an excellent corporate policy as well. This is as advanced manufacturing is defined as processes which use next generation technologies either in the production process or in the final product. The cutting edge systems have created about one million jobs from 2010.
According to Rob Atkinson of Information Technology and Innovation Foundation, people who stress on manufacturing jobs are denying themselves real world facts. They deny the evidence around them. The economist and president of the research body point out the number of opportunities which advanced manufacturing presents. This premise holds true for almost every product as they become connected to the Internet. Raymond said any investment in the integration of technology into products and advanced manufacturing will be beneficial.