by WALDEN BELLO
“Grim: Netting has been put up outside worker dormitories buildings in Chengdu and Shenzhen after a spate of suicides last year.” “Factories making sought-after Apple iPads and iPhones in China are forcing staff to sign pledges not to commit suicide, an investigation has revealed.
“At least 14 workers at Foxconn factories in China have killed themselves in the last 16 months as a result of horrendous working conditions.” Text/Daily Mail PHOTO/Getty/Daily Mail
Ever since the beginning of the current global economic crisis, the focus of both critical analysis and public odium has been speculative capital. In the populist narrative, it was the breathtaking shenanigans of the banks in an atmosphere of deregulation that led to the economic collapse. The “financial economy,” characterized as parasitic and bad, was contrasted to the “real economy,” which was said to produce real goods and real value. Resources flowed into speculative activities in finance, resulting in a loss of dynamism in the real economy and eventually leading to credit cutoff at the height of the crisis, causing bankruptcies and massive layoffs.
Vampire Squid versus Corporate Galahad?
The principal villain in this narrative is Goldman Sachs. The image of this Wall Street denizen has been etched in the public mind by Matt Taibbi’s description of it as “a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.”
In this account, the old nemesis of the progressive analysts, the transnational corporation (TNC), slips quietly into the background. Indeed, it is seen as part of the real economy, as the commonly used term “non-financial corporation” implies. In contrast to the investment banks that create fictitious products like derivatives, TNCs are said to create real products like Apple’s nifty iPads and iPhones. While Goldman Sachs is pictured as a vampire squid, Apple is depicted as a corporate Galahad that can be relied on to deliver the consumer’s wildest desires. In one survey, 56 percent of Americans associated nothing negative with Apple.
A recent two-part series in the New York Times on Apple, however, reminds us that transnational corporations and their practice of outsourcing jobs are front-and-center when it comes to the current economic crisis. And it is not only “smokestack” corporations like GM and Boeing that have massively shifted work from the United States to cheap labor havens abroad, but also those involved in the knowledge industry. Indeed, the highest proportion of firms with an offshoring strategy belongs to the information technology and software development industries. But while HP and Dell have become associated with outsourcing, Apple’s prowess at turning out products that capture the popular imagination has kept it from being tainted with the image of being a labor exporter.
Apple and Outsourcing
Apple earned over $400,000 in profit per employee in 2011, more than Goldman Sachs or Exxon. Yet in the last few years, it has created few jobs in its home base and prime market, the United States. According to the Times account, “Apple employs 43,000 people in the United States and 20,000 overseas, a small fraction of the over 400,000 American workers at General Motors in the 1950s, or the hundreds of thousands at General Electric in the 1980s. Many more people work for Apple’s contractors: an additional 700,000 people engineer, build and assemble iPads, iPhones and Apple’s other products. But almost none of them work in the United States. Instead, they work for foreign companies in Asia, Europe and elsewhere, at factories that almost all electronics designers rely upon to build their wares.“
Foreign Policy in Focus for more
via Toward Freedom