Posted on 12/17/2010 3:35:41 AM PST by expat_panama
[snip]
"A distorted picture" is the result, they say, one that exaggerates trade imbalances between nations.
Trade statistics in both countries consider the iPhone a Chinese export to the U.S., even though it is entirely designed and owned by a U.S. company, and is made largely of parts produced in several Asian and European countries. China's contribution is the last step—assembling and shipping the phones.
So the entire $178.96 estimated wholesale cost of the shipped phone is credited to China, even though the value of the work performed by the Chinese workers at Hon Hai Precision Industry Co. accounts for just 3.6%, or $6.50, of the total, the researchers calculated in a report published this month.
[snip]
If China was credited with producing only its portion of the value of an iPhone, its exports to the U.S. for the same amount of iPhones would be a U.S. trade surplus of $48.1 million, after accounting for the parts U.S. firms contribute.
Other economists say some aspects of the researchers methodology may have led them to overstate their case. The study, for example, assumes that companies such as Toshiba Corp. and Samsung Electronics Co. that make components for the iPhone wholly assembled them in their home countries.
[snip]
(Excerpt) Read more at online.wsj.com ...
Good article. The entire concept of a “trade deficit” is single entry accounting and a statist’s dream.
People make so much noise about their silly ‘trade deficit’ and have no idea what they’re honking about.
Bingo. I sell a $10 million design to China, get paid in gold, and the trade deficit goes down another $10 million.
Get your “free trade” kool-aid here!
“Good article. The entire concept of a “trade deficit” is single entry accounting and a statist’s dream.”
-
Of course.
That would explain why we now owe China trillions, and our children will owe them even more.
Wake up.
I have ‘trade deficits’ with my grocery store, Walmart, Bushmaster, Smith & Wessen, Cabelas, Rush 24/7, etc. etc.
A mortgage they can pay is the only legitimate debt a family should have. Do you run your own household economy at a deficit? Are you in hock to credit cards companies to the tune of $300,000?
Perhaps you are.Perhaps you are a credit junkie as you issue your inane “free traitor” commentary from Panama. Where you bugged out to. You don’t even live here. Lots of offshore banks in your new homeland where American tax dodgers deposit money
This is a strawman. It isn't the inaccurate accounting of trade imbalances between the US and specific countries that's the problem. The problem is the total trade imbalance itself, which is real. Just because one country doesn't make 100% of the iPhone does not mean it's not an import.
You live in Panama outside of US tax jurisdiction. You are not in the US Dollar eco-system. Anything you sell to China is counted in Panama's trade numbers if they keep any that are reliable. Which I doubt.
“U.S. trade deficit with China—$226.88 billion, according to U.S. figures—would be cut in half.”
I don’t know but it seems like there is still quite a big gap there, but only a little more then 113 billion dollars.
Correct. 99.9% of an iPhone is made in Asia.
My guess is Apple's designers plus software/hardware engineers are responsible for 33% of that contribution with the Taiwanese cell phone/laptop geniuses picking up the other 67%. The ChiComs at FoxCom with their slave army make it so should get some credit.
IOW the iPhone is mostly designed & engineered in Taiwan. Made in China. Advertised, pimped, sold, distributed by Apple and its cell phone partners
IPad is the same process except for the cell phone partners
“So the entire $178.96 estimated wholesale cost of the shipped phone is credited to China, even though the value of the work performed by the Chinese workers at Hon Hai Precision Industry Co. accounts for just 3.6%, or $6.50, of the total, the researchers calculated in a report published this month.”
How convenient because they’ll never see the entire $178.96 after the currency moves.
Maybe I am naive, but I think we owe China so much because they have bought our country's debt. I don't begrudge them the opportunity, but I think it is naive to say that it is China's fault. They have cheap labor and production costs. They also have a lot of mouths to feed. They are making products to use, not debt.
Our national debt is huge because our politicians spend too much. The Chinese have so many dollars and nowhere else to spend them. It fuels our debt more than it fuels any "trade deficits".
It's easier to have a boogyman than to hold those truly responsible out-of-control Congresscritters accountable. I am not promotingChina. I am just not ready to damn them...
It’s like being surrounded by cult members sometimes.
Or Obama supporters.
“Free trade” brainwashing is pretty much the same. The reflexive defending of the politically correct position.
The moral posturing.
Wake up. Our nation is at risk.
Serously. This is not some academic exercise.
We are losing. On every front. Economically. Technologically. Manufacturing. Jobs. Relative military strength.
All the trends are negative for America - because of what Ross Perot saw and correctly identified:
The “giant sucking sound”.
Get your “free trade” kool-aid here!
The Free Trade Communists are proof that are public schools are an abject failure.
This article shows that Free Trade Communists are scrambling and spinning to push their failed Statist agenda. If trade deficits were good.....Africa would be the economic giant of the world.
The iPod is not being made in America....and that does not help the American economy. The real wealth created is in the manufacturing of the product. Should I feel relieved that it is more than just Communist China making the iPod?
(By the way....Free Traders are “Statists”...they are the ones who started and run the World Trade Organization, NAFTA, EU, UN..etc....all these organizations are statist.....people need to learn what “statism” means)
The colors of the flag of Lithuania are real too but I don't loose any sleep over it --and I sure as hell don't think it's worth raising everyone's import taxes.
--and you're not bursting into tears? Amazing!
I have ‘trade deficits’ with my grocery store, Walmart, Bushmaster, Smith & Wessen, Cabelas, Rush 24/7, etc. etc.
Gosh...not the idiot Free Trader Communist “I have a deficit with the grocery store” nonsense.
Unless you gave the store $500 and got nothing in return...you do not have a deficit with a retailer. A
At least my grocer gives me equal exchange of merchandise for the money I spend...and I get to keep my job. Unlike Free Trade with Communist China...or Free Trade with anyone else
Here in America that’s spelled “lose”... :)
So what do you do in Panama, if you don’t mind sharing?
Sell stuff into the American market, which is made in China? Or perhaps made in Latin America?
Do you in any way, do anything, which actually supports the American economy in any way?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.