Not Steve Jobs, jobs-jobs. My old friend Greg LInden and a team of UC Berkeley researchers crunches the numbers (via Michael Mandel).
[W]e estimated that the iPod and its components accounted for about 41,000 jobs worldwide, of which about 27,000 are outside the U.S. and 14,000 in the U.S. (Table ES1). The offshore jobs are mostly in low-wage manufacturing while the jobs in the U.S. are more evenly divided between high wage engineers and managers and lower wage retail and non-professional workers. As a result of this, and of cross-country wage differences, U.S. workers earned $753 million, while workers outside the U.S. earned $318 million … While China accounts for the largest number of jobs outside the U.S., Japan earns by far the largest share of the non-U.S. wage bill ($102,380,000) because of its role in supplying key components like small hard-drives and displays. … [T]he iPod supports nearly twice as many jobs offshore as in the U.S., yet wages paid in the U.S. are over twice as much as those paid overseas. The most important factor is that Apple keeps most of its R&D, marketing, top management and corporate support functions in the U.S., creating over 5,800 professional and engineering jobs for U.S. workers that can be attributed to the success of the iPod.
These findings clearly show America’s very advantaged position in what geographers call the “spatial division of labor,” and show why bailouts of production operations promise far fewer economic benefits than investments in innovation. We need stop trying to slow down the process of creative destruction. The world has a complex globe straddling division of labor. More innovation creates more jobs here and good manufacturing jobs abroad. Seems like a win-win to me.
December 18th, 2008 at 10:06 am
This scheme should include a plan for the folks who will be disenfranchised by it, particularly those who lose high-paying factory jobs. History has shown, time and again, the despair of the disenfranchised has led to civic violence.
December 18th, 2008 at 2:21 pm
The iPod is a prime example of technology changing the economy and society. I’m working with two public radio stations, both of which are losing audience to various competition, but a lot of it is to iPods. Many younger people don’t listen to radio, period. A son in law in California was recently laid off as public affairs director of some for-profit radio stations, same deal.
The iPod is also devastating other recorded music. The longtime music store in Northwest Portland recently closed, people aren’t buying CDs (I know I’m not). CD’s as a dominant technology lasted maybe 15-20 years?
So how many jobs have been lost to balance those 47,000 jobs, or the 14,000 in the US? There is some significant loss to go with the win-win of new technology. I wouldn’t argue to try to go backwards, but there’s definitely more complexity than just new jobs being created.