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Monday, September 23, 2019

Tariffs mean 2.4 million jobs



Earlier this month, I noted that thanks to tariffs, border jumping from Mexico fell 56% after President Donald John Trump gave Mexico the choice between tariffs and enforcing the border.

Today, another benefit of tariffs emerged. Apple announced it will invest $350 billion (more than one-third of a trillion dollars) in production in the United States. This will create 2.4 million jobs. That is an investment of $145,833.33 per job created.

Apple said, "Apple is on track to fulfill its commitment to invest $350 billion in the US economy by 2023. Last year alone, the company spent over $60 billion with more than 9,000 domestic suppliers across the country, including at manufacturing locations in 36 states.

"Apple’s investment in innovation supports 2.4 million jobs in all 50 states, including 90,000 direct employees. Last week, Apple announced it is awarding $250 million from its Advanced Manufacturing Fund to Corning Incorporated, supplier of precision glass for iPhone, Apple Watch and iPad.

"To date, Apple has invested over $1 billion in American companies from its Advanced Manufacturing Fund — deploying the entire $1 billion initial investment and 20 percent of the $5 billion it subsequently committed to spend. In December, Apple announced plans to expand its presence in Austin and a dozen other cities across the country, including San Diego and Seattle."

Earlier this month, CBS reported, "Trump trade war with China has cost 300,000 U.S. jobs, Moody's estimates."

This was based on an estimate by Mark Zandi, a Never Trump Democrat who accentuates the negative.

This is simple arithmetic. 2.4 million minus 300,000 still leaves you a 2.1 million net gain in jobs.

4% unemployment.

Try 3%.

UPDATE: From comments: "Apple was all set to move its Mac Pro manufacturing operations to China after Trump declared, 'no tariff exemptions for Apple.' Apple changed course when the tariff exemptions on certain Mac Pro components were lifted."

Which is exactly what President Donald John Trump and normal Americans want. We got Apple to create jobs here.

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