Wednesday, January 25, 2012

Apple does not mean more jobs

Paul Krugman weighs in against the comments made by Mitch Daniels about Obama after the State of the Union Address.  Daniels claims that Steve Jobs created more jobs than Obama did with his stimulus dollars (I'm not sure why that would even be relevant against Obama, even if it were true).

Krugman points out that many more people work in the US auto industry, which Obama helped save, then work in the USA for Apple Computers.

I go a little further with this comment I submitted:

Of course the production of Apple products does currently employ people, some in USA and mostly in China. But if Apple did not exist, people would be buying more computer products from other computer manufacturers instead. Since those other computer products are generally cheaper, sold with much lower profit margins, more of them would be sold, and hence more people employed.

On the other hand, if the US auto industry did not exist, many many workers in USA would be unemployed, not able to buy much of anything, and therefore other jobs in the USA and elsewhere would not exist as well.

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