Wednesday 18 January 2012

An apple day...


When it was revealed that 14 Chinese workers at a factory in China making I-pads had committed suicide due to unbearable working conditions, I guess we all thought ‘Huh?’
Details were depressingly familiar to those of us who try very hard to steer away from the worst excesses of corporate greed by voting with our wallets. Employees, according the Observer were being coerced into working as much as 98 hours overtime every month; talking during the 12 hour shifts was forbidden, as was sitting down. The workers were allowed only one day off every fortnight, slept 24 to a single substandard room within a dormitory with décor enlivened only by the anti suicide nets in the corridor. They were paid on average a disgraceful £5.25 a day and the suicides, a despair ridden cry for help if ever there was one were not met with any attempt to improve conditions. Foxconn opted instead to simply force workers to sign anti-suicide pledges thus ensuring bereaved families could not sue the company.

Apple computers posted $6 billion in profits last year, they are one of the most successful companies in the world and for reasons that have always escaped me, create products that consumers react to with an almost sexual fervour. Marx’s consumer fetishism comes into sharp focus before the glassy eyed proselytization of Mac fans, deliriously thankful that Apple has created a physical manifestation of their own self worth. They just have to share the good news do they not? Steve Jobs was eulogised with the kind of prose usually reserved for the death of a royal grandmother and this despite the fact that he was, by all accounts, an asshole of such grandiose proportions that even with personal assets in the billions if he’d ever chosen to use $50 bills as toilet paper, he’d have been broke within a month. [i] He died a saint, whilst Bill Gates, (remember him?)  the world’s largest contributor to charitable causes and certified nice- guy enjoys no similar popularity, an object of derision and contempt his philanthropic efforts wins him no laurels.  

And that’s where the ‘huh’ came in. When 150 workers gathered on the roof, of a Foxconn factory and threatened to jump off in protest of working conditions we were reminded of the world that we have built for ourselves… that the wealth of a nation is too often built on the back of slaves. Britain started the concept, the gray-grim hues of Lawry’s Manchester factories painted a picture of insipid uniformity, of a despair etched into the veins of a society that churned out misery on an industrial scale.[ii] The party could not go on of course, Engels realised before any of us that abject misery was an unsustainable non-renewable resource. Where he erred was his belief that the road to freedom could be predicted, it cannot but nevertheless, the destination remains the same. If capitalism is not increasing prosperity even on utilitarian grounds, then it has simply, got to go.
Apple having sequestered away some $80 billion on their balance sheet, (which by the way is illegal,) have created a battle chest that will no doubt protect them from any of the law suites currently heading their way for human rights abuses. But the sheer scale of their liquid assets raises interesting questions; they are one company one American company that could, if they so wished pay Chinese workers enough money to prevent mass suicide in their factory in the first place. They could go one better, and actually open some factories in the US!  They could do it you know.  Because the American economy, in free fall, with a £274 billion trade deficit between the US and China alone is no more a sustainable proposition than were Lawry’s  grim matchstick men; China makes, America borrows, America consumes, a bastard hypotenuse that those of us familiar with the great crash of 1929 might care to recognise.

The American economy should be dust by now anyway. General Motors had the brilliant idea of moving its factories down to Mexico. ‘Mexicans,’ they must have thought ‘Will work for lower wages!’ Sure moving a factory and training up a work force was expensive but think of the long term, think of the savings! Never mind that the primary consumers of American cars were Americans, never mind that Americans like to buy American-made products, never mind that GM and companies that followed suit denuded the US economy of jobs. Well actually, we should mind, because mass unemployment drove wages down, allowed politicians to ignore the elephant in the room (the military budget,) and pretend that the real problem with the economy was centred on welfare or health or whatever the right wing Zeitgeist flavour-of-the-month scapegoat was that week. General Motors saved so much money moving to Mexico that it spectacularly failed to notice it was impoverishing its loyal consumers; it, as the US was dragged deep into the silt of a global quagmire, went bankrupt in 2009. From a high of over half a million workers in 1979 they dwindled down to just 50,000 in 2009. Well done them. Six months later they had been bailed out; because a US without a GM would be like, well it would be like Britain without Rover…

Whilst corporate America worked hard to ensure that the virtues of the American economy were demolished one by one, politically America was shielded by just about the most enviable trump card you could imagine, its status as the sole possessor world’s reserve currency. The ability to print money in quantities that would have us Europeans making kites out of 100 euro notes shielded and alas blinded Washington to the failure of a neo conservative agenda to deconstruct hard-fought, post road to Wigan pier like advances to liberal democratic living standards, worker rights and values. The huge advantage that the US economy has enjoyed for the past 60 years or so was never unassailable but it was the devil you know for so long that no one really ever attempted to topple it. Well, no one clever attempted to do so at any rate. But  China is as we speak  hoovering up gold in huge quantities; they are already the world’s largest producer of gold and every ounce they dig up is being lovingly added to their reserves… not they would admit to that but then, this is China we’re talking about. If China successfully wrestles the reserve currency from the antediluvian craw of the American economy then we’re going to start seeing a ‘¥’ upon a standard QWERTY keyboard pretty darn soon.

The question we have to ask is, would it really be such a bad thing? China is a beastly place when you think about it, human rights are non existent, workers are literally worked to their death, liberty remains an unaffordable premium, well, unaffordable to most that is. As the US slips into a respectable third or fourth place, new opportunities will arise, opportunities born out of adversity or not that may yet paint a picture of a not wholly depressing nature. Whilst America will longer be able to afford to ‘police’ the world nor will they be so impoverished as to force them into the ruinous isolationism of the past. Maybe, just maybe, America will look to its own prosperity. After all 60 years of meddling in the affairs of others has categorically not increased the prosperity of the many, only of the few and its aggressive military posture created it far more enemies than friends. And China, no more in control of its own destiny than anywhere else will soon find that one billion disgruntled workers demanding rights in the streets will take it too to the inevitable destination.














[i] [i] For some great examples of his  assholyness  the Jobb see .http://www.businessinsider.com/steve-jobs-jerk-2011-10

[ii] Those of you unfamiliar with Lawry’s genius should take a look at http://www.thelowry.com



2 comments:

  1. Consumers will continue to buy products no matter how unethical the production method is.
    You make me feel guiltily about buying my mac a couple of years back but then I made a choice based upon product and price (personal value to me) and I valued the user friendly reliable mac over windows at the time. Now I would add ethical concerns to my subconscious calculations and perhaps not buy a Mac. But you can only expect people to be rational and short term as most people don't have long term wisdom or knowledge of the outside world (they don't have time). The problem of ethics and consumerism are a market failure of capitalism that can only be fixed with government intervention moving it from an economic issue to a political one.
    However a global economy makes government invention (which at the best of time is hit and miss) near impossible without strong global institutions or cooperation. If even half of realism is true then thats unlikely to happen.
    Our faith in the markets will sort things out eventually but not how hope. If we continue to assume a free market stance then we'll soon find it will correct imbalances punishing the USA for its crimes of over consumption and inefficiency while rewarding those that are efficient; China. Yet that efficiency is off the back of exploitation which itself will correct itself when the people rise up, which they will eventually.
    Market economics creates inequality but then that inequality causes unrest which hopefully, although it can take many years and doesn't always work, creates more equality. We pollute to create growth but then that growth is stunted by environmental challenges which were only just seeing take effect. Throughout history people have proposed these self corrections like the Malthusian trap, the reason they aren't as clear is that countries interactions with each other distort them; We use up natural resources, we now purchase them abroad. Over population leads to famine, other countries give food.
    The governments job is to smooth these crisis out over the long term for the benefit of its population. Yet instead we see governments putting their faith in a more and more free markets and then wondering why they get hit with recessions and crises. Western governments are as corrupt as any, they don't help their people and instead often end up helping the elite rich all in the name of a capitalist system that runs riot (trickle-down).
    I'm not saying communism is any better but as with anything the virtuous path lies between two vices, in this case one is capitalism and the other communism*, there was something similar to this called 'socialism' but thats been outlawed.
    In summery I agree but I'd argue all our concerns will sort out in the long run however to paraphrase Keynes in the long run we're all dead. If you want ethical consumers you need the government to lead the way just as liberalization during Thatcher lead the way for consumerism and greed.** Good government is the key, but it has to be global and its rarer than all the worthless Gold China is hoarding.
    Although, just my thoughts.


    *communism often associated with dictatorship and capitalism with democracy. I'd argue the more effective a democracy is the better it is at solving the externalities I referenced. After all its in 'the peoples' interest to prevent the externality of pollution that is caused by production etc. Our 'democracies' are not as effective as they could be if reformed, just saying...
    ** debatable

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    Replies
    1. You make some interesting points. I'm not an economist though I accept that much of what happens in the world is based on economics. I don't intend to make anyone feel guilty for buying a Mac I'm merely reacting to the fact that such a company sees the need to behave in a deplorable manner. We're locked in old ways of thinking, the alternative is not communism rather, we haven't come up with an alternative as of yet. The kind of German style socialism we saw in the 80's seemed to work for a time. Any over arching socio economic strategy has to be flawed, and I'm certainly no communist; capitalism's success lay in raising living standards - more or less. Americans living in the early seventies would have understood this, those living in the early 21st Century are living in the richest country inn the world still yet 48 million people are living in Poverty - even the most die hard cold hearted conservative would admit that's 48 million wasted customers! The French didn't need Marxist ideology to overthrow their government in 1789 and the Shia of Bahraine don't need it either, the currency might be bread it might be an abstract noun like 'Freedom' people will die for either. Keynes is right, in the long run we're all dead but that doesn't stop the fight, it barely slows it down. If capitalism can't adapt and work for society as a whole then it will have to go, I don't know what it will be replaced with but Marx's prediction remains valid; it will go and it will go with a bang!

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