Is Tim Cook, the CEO of APPLE, ignorant or a fraud?

Tim Cook, the CEO of Apple, was recently asked why his company moved its production to China. “It’s skill”, said Cook in response to Charlie Rose on 60 Minutes. “The U.S., over time, began to stop having as many vocational kind of skills” he said. “I mean, you can take every tool and die maker in the United States and probably put them in a room that we’re currently sitting in. In China, you would have to have multiple football fields.”

A football field is 360 feet long and 160 feet wide for a total of 57,600 square feet.

Apple’s CEO was wrong. The reason the US public schools probably stopped funding vocational programs that trained, for instance, these tool and die makers Cook mentions, is because U.S. corporations left the U.S. for cheaper labor. And when those U.S. manufacturers left, the need for more tool and die jobs dropped, and the jobs that replaced them shifted to the service sector and paid less. For instance, fast food and Walmart, a company that imports many of the products that it sells.

But what Apple’s CEO doesn’t mention is the fact that automation has also cut back on the need for many jobs—like tool and die makers—because computer programmers do that work now. They program a robot to make a part without the need of a tool or die maker.

Yes, the world has changed, but the U.S. still has a large manufacturing sector. In fact, it is the 3rd largest in the world behind China and Germany, and it wasn’t that long ago, about three years, in fact, that the U.S. was still number one.

The manufacturing institute.org reports that “in 2012, (U.S.) manufacturers generated $2.03 trillion worth of value-added.  In the 20 years ending in 2012, manufacturing output increased more than 83 percent. The U.S. manufacturing sector is so huge that if it were its own country, it would rank as the eighth-largest world economy.  The United States produces the most goods and services overall as measured by gross domestic product (GDP), and is far ahead of second-place China.  Other countries, such as Japan and Germany, showed less growth buoyancy over the past decade compared with the United States.”

According to the IMF and CIA World Factbook, in 2015, the U.S. had dropped to third place behind Germany and China. The industrial output in U.S. dollars for the top five countries in 2015 was: 1st place China at $4.92 trillion, 2nd place Germany at $4.16 trillion, 3rd place United States at $3.75 trillion, 4th place Japan at $1.16 trillion, and fifth place U.K. at $588 billion.

My question is this: how does the U.S. support such a large home-based industrial output with only a small roomful of tool and die makers? It doesn’t, because the Bureau of Labor Statistics reports that there are 75,950 tool and die makers working in the U.S.

How large? Well, according to Rental Max, it takes 8 square feet per person for what they call partial seating. That means a room to hold almost 76-thousand tool and die makers must be at least 607,600 square feet in size. Now if the tool and die makers are standing, then the room only has to be about 456,000 square feet.

How many multiple football fields would it take to hold that many tool and die makers?
8 to 11 football fields depending on if they were standing or sitting.

Anyone who is interested in discovering the big fat lie that the Apple CEO said on 60 Minutes only has to check the following page at bls.gov.  It’s very detailed and it clearly reveals how misleading the CEO of Apple really is.

During the 60 Minutes interview Tim Cook said the notion of Apple avoiding U.S. taxes was ‘political crap’. What do you think—is Apple’s CEO Tim Cook a fraud and liar, just ignorant, and/or full of the crap he’s talking about?  After all, isn’t there some truth in that old saying that it takes one to know one?

_______________________

Lloyd Lofthouse is a former U.S. Marine and Vietnam Veteran,
who taught in the public schools for thirty years (1975 – 2005).

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Lofthouse’s first novel was the award winning historical fiction My Splendid Concubine [3rd edition]. His second novel was the award winning thriller Running with the Enemy followed by his award winning memoir Crazy is Normal.

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25 thoughts on “Is Tim Cook, the CEO of APPLE, ignorant or a fraud?

    • I won’t shop at Walmart or by Dell, but the danger is that if we look to close at all the giant corporations we still shop at we will find they are all probably doing the same thing Walmart and Dell do. My desktop is a computer from a company called ZT. The only Apple product I have is a iPhone 4 and I use that maybe 5 minutes or less a month, but it came with the Verizon package when I left AT&T after they lied to us that they could increase our Internet speed if we paid them more. Now I won’t do business with AT&T.

      Maybe we’d be better off if we dropped out of the internet society, disconnected from phone service, and only shopped at farmers’ markets.

  1. Your question, Lloyd, is “… a fraud or just stupid”. I ask, is the CEO of Apple greedy or choosing to be ignorant??? Word play, I guess. They just might go hand in hand.

  2. CNC machines now do a lot of the work that tool and die makers once did, here and in China. The millions of workers who assemble products for Apple are Chinese because they work much cheaper than even US minimum wage, very profitable for Apple, and for Apple shareholders. Cook isn’t stupid at all.
    How much does the average US household spend per year on cell phones, data plans and related services?

  3. Cross posted at this link
    http://www.opednews.com/Quicklink/Is-Tim-Cook-the-CEO-of-AP-in-Best_Web_OpEds-Corporations_Funding_Manufacturing_Schools-151229-373.html#comment577357
    wIth this comment which has many interesting EMBEDDED LINKS AT OPED:
    I was listening to an educator yesterday, discussing the poor performance of the current crop of high school graduates,. 40% are unable to think critically enough to do the jobs our society always needs… to electrify a home, or create plumbing or build a structure. Vocational skills went out the window when the plutocrats, through Gates, invented a new “curricula” with no evidence required as to its benefit… a magic elixir — a subject that I wrote about, here, years ago.

    Passing “tests” of memory was foisted on us by Pearson, with thanks to Bush and his NCLB, which left ALL our future citizens whom we call kids, without the skills they need to survive, to thrive in the 21st century. Testing Schools became the national narrative, so testing kids came next, and finally tying the teacher’s rating to these memory tests, ended the profession of pedagogy.

    Rick Ayers, a professor of teacher education at the University of San Francisco, reviews the controversy over EdTPA, the Pearson-owned assessment tool for future teachers. In the past, educational professionals decided whether teachers were prepared for their job. Now, in 35 states, teachers must take the Pearson EdTPA to win certification. See what he writes summarized by Ravitch

    Then, if you want to know why Cook is fluff crap… take a look at the billionaire crowd of the EIC (EDUCATIONAL INDUSTRIAL COMPLEX). I saw them REVEALED, after seeing the diagram at the Diane Ravich Blog*
    *I read and comment daily, here, about education and the enormous war on Public Schools.

    These people–the EIC Crowd : Broad, Pearson, Walton Gates etc., planned the end of LOCAL CONTROL of schools, so they were places where LEARNING ACTUALY could occur. Our workers are expensive… better to ship the jobs to China!!

    These folks, in order to create a more stupid population, gave us the COMMON CORE CRAP, and then they purchased the media, and sold it through their shill Duncan to the people as CHOICE.

    Now the graduates of the destruction, have no choices, deprived of the ONLY ROAD that leads to INCOME EQUALITY… the path that begins in public schools where patents and PROFESSIONAL TEACHERS, determine WHAT LEARNING REALLY LOOKS LIKE!

    WHAT LEARNING REALLY LOOKS LIKE is the subject, FYI of the REAL…National Standards Research (Pew funded;Harvard & the LDC at the Univ. of Pittsburgh).

    Never heard of this research on ‘effort-based’ education… you know…where learning skill are the objective, and practice and hard work, not memorization creates REAL LEARNING!

    Well, Tim Cook knows that real skills come from a society where citizens attend schools that prepare the TO WORK. Schools where ALL KIDS LEARN–> how to plan and organize, to hypothesize and to synthesize to pass real tests… of PERFORMANCE.

    BUT, WHAT DO I, the NYS Educator of Excellence, KNOW?

    Well, see my resume here at Oped, and the work I did for Pew on the standards, as a COHORT!
    Submitted on Tuesday, Dec 29, 2015 at 1:05:25 PM

    • Thank you. I think you are missing a couple of links.

      A lot more is changing from the top down than just the destruction of community based, non-profit, transparent, democratic public schools. I read recently that what made America great was also the amount of money that went into R&D and that has also dropped dramatically as Wall Street changed the way it measures success to short term profits that always must be higher than the previous quarter—if profits drop, even if a company is still profitable, the media reports that they are losers and that often causes them to lose more revenue as customers swallow the BS and stop buying their products or shopping at their stores.

      I also saw a film this week, The Big Short, that is based on a real story about what caused the 2007 global financial crises. I think this film offers proof of the change that is destroying the United States, democracy, republics, freedom, labor unions, etc.

      The cause of it all is rampant arrogance and greed from the top of the economic pyramid. up there among the 1%, and it started seriously with President Reagan and his worship of trickle down the garbage while trampling the working class. We are are now living in an era that reveals what happens when every great civilization dies.

      • Exactly….. the need to steadily INCREASE profits, is the measure of success. There is never ‘enough’ money, so that there can be alive-back to the people. Ironically, the Pilgrims’ culture was one in which people were expected to give -back at least third of profits to the society. Today, our 1/10th of 1%, give back as little as possible,

        These narcissists do not enable the ‘common welfare’ of the nation in which they live. They care not a whit for the people who make their life possible. The rob the national pocketbook, and squander it on personal jets, yachts and homes, when the people lose everything.

        I hate to say this, Lloyd, but this culture is extracting everything from and the only outcome that I see is the end of everything!

        Links are at the Oped site. Word press does not copy the links my comment. Go to OPED…the links I embed are worthwhile!

      • I see a lot of movies and I also follow how much these films are earning, and I’ve noticed that if a film doesn’t make a huge amount of money its first weekend, the box office reports in the media often bash them as losers, as box office duds.

        For instance, John Carter, a film that had a production budget of $250 million US dollars. It’s opening weekend it only earned $30 million and the media bashed it as a box office loser and dud, and if the media mentions it even now, more than three years later, it is still labeled as a loser, but its worldwide box office take reached $284,139,100 before its run in theaters was over, and it is a good film. I saw it.

        As I see it, a film that makes that much money is not a loser but Wall Street measures things entirely differently. If the studio had produced the film for half of what they spent to make it, then the media would be calling it a winner.

        The CEO, oligrach, corporate mindset today is that a company has to always grow larger with a bigger market share and earn larger profits or you are a loser.

        What happened to companies that made enough money to pay the bills, stay out of debt, pay the workers a living wage and earn the owner a good living by just keeping a steady, loyal customer base that might or might not grow?

      • OH, Lloyd… you know the answer to that. Mankind has a gene for survival of the guy with the most stuff… in fact, I read a piece on this very survival ploy! Wasn’t it Adam Smith who made it clear that the wealthy critters at the top want it “all for themselves and nothing for everyone else.” They never have enough.

        But what ‘gets’ me, is when really comfortable upper middle class folks that I know — people who make at least 250k a year, think that the policies that are bankrupting our states and destroying the national prosperity and the American dream (as they remove the schools and health care, and let infrastructure decay) benefit them.

        Look at what France just did… a social democracy does this… we are not a democracy and our leaders do nothing for our society bu mil it for the 1/10th.
        http://www.dailykos.com/stories/2015/12/29/1464446/-This-news-from-France-will-help-you-understand-just-what-a-raw-deal-Americans-get-with-health-care?detail=email

        Ordinary well-to-do folks, like my doctor son and his doctor wife, pay through the nose to maintain roads, schools, infrastructure and everything, while the real ziilionaires send their money out of the country. My son complains about the ‘entitlements’ and busy the entire WSJ propaganda, and lectures me about those ‘lazy’ people.

        He is a brilliant man, was a brilliant boy, and I never expected that he too could be bamboozled.

        Look, at OPED, where I and Robert Reich and Chris Hedges write; we who comment there all know there is a NEW World Order. It is a given. We know the oligarchy is in place, and that they have purchased our legislature and our Supreme Court and are on their way to ensuring they capture the executive office… they own BOTH parties, and the White House will be theirs IF Hillary wins…. (you have seen her at Bilderberg?)

        Only Bernie can deter them…. for a while.
        And Rob, the publisher at Oped News, promotes the idea that we CAN make a difference, and that we cannot give up on creating the intellectual revolution that will prevail if we keep telling the truth!

        Rob Kall is so bright. I love his radio interviews (like the recent with John Gatto –author of “Dumbing US Down,” and I find fascinating his series on ‘sociopaths.’
        http://www.opednews.com/author/author1.html
        You should become a member here, and quicklink your posts here, to OPED. In this week’s newsletter. ( I had seven pieces that I posted Make the Newletter headlines this week. ( I guess Xmas week is a slow week, usual I only have 2 or 3) http://www.opednews.com/flyer/newslarge_20151229_1.html

        Also, I think you will find this New Yorker piece interesting…on the subject…
        http://www.newyorker.com/magazine/2016/01/04/what-money-can-buy-profiles-larissa-macfarquhar?mbid=nl_151228_Daily&CNDID=36080825&spMailingID=8385200&spUserID=OTYzODM3NDkwNDkS1&spJobID=823010332&spReportId=ODIzMDEwMzMyS0

      • When I saw the film “The Hobbit,” there is a scene where Smaug is sleeping on this huge mountain of gold. There is no difference between Smaug and Bill Gates, Eli Broad, the Walton family, the Koch brothers and all the other power hungry, never is enough billionaire oligarchs. They are all Smaug from Hedge Funds, to Wall Street and Apple and Microsoft, etc.

        Smaug and what happens in the Hobbit films because of that mountain of gold is a metaphor for what is happening in the world today. Wealth and the power that comes with it corrupts those who have it.

  4. Dear Mr. Lofthouse

    Happy New Year to you and your loved ones.

    I would recommend that people with investment mind should go to see a movie “the BIG SHORT”.

    AMERICAN Business leaders are FRAUD. They only care for their own profit, NOT for their loyal workers or their country economy.

    These HANDFUL business tycoons are able to loot TAX MONEY in billion dollars from their few millions to lobby American Congressmen so that business leaders can manipulate legal and justice system to work in their favor through their own media control.

    It is very sad to acknowledge that those RETIRED experts in academy are truly slave and puppet for those fraud business tycoons. The smartest way to fight back is to be healthy, to constantly believe in humanity and to live with human conscience because the absolute and universal law of KARMA will take care of all injustice in life. Back2basic

  5. One of your best. There is no friggin reason why their smart phones cannot be made right here except for his greed and unwillingness to pay a living wage and not use child labor. He is unwilling to take a smaller profit to give Americans good jobs. He has no care or love for this country at all. He is a scoundrel who wraps himself in the American flag. He has loyalty to no nation, no country. His loyalty rests on a bag of gold.

    • Thank you. What you say is true, and I agree.

      But what’s interesting is that in China, the Chinese, who work in those factories, are earning a lot less than American workers in the same industry, but those Chinese are earning a lot more than they did before they left the rural village and migrated to the industrial centers—they were and still are the primer that is living hundreds of millions of Chinese out of poverty and into the middle class.

      For instance, in the last 30 years, China is responsible for 90% of the global reduction of those who live in poverty, and China doesn’t just trade with the United States. It trades with the world and almost breaks even with its exports and imports. However, the U.S., because of its unfriendly policies to its own workers and unions, runs a deficit. Other countries, like Brazil for instance, have actually have gained from trade with China as has Australia and several countries in Africa where countries have products the Chinese need like food to feed it’s huge population.

      Have you read or heard of “Country Driving” by Peter Hessler. Hessler lived in China for several years, and he wrote several books about his time there and what he learned about China.

      http://www.amazon.com/Peter-Hessler/e/B001ILMA1C

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