Apple is the most valuable company in the country. It employs over 47,000 people. It’s stocks are worth over $500 billion. I would say that little ol’ Mac is a success. So why is it trying so desperately to make us love it? Why is Apple promoting a multiplier effect that applies to every business in the country, including its competitors?
Apple just released a study claiming that even though they employ 47,000, their company indirectly creates another 467,000 jobs in the US. That’s right, 517,000 working Americans owe Apple for that bi-weekly paycheck. Next thing we know, Siri will be running for President. After all, elections are all about jobs, jobs, jobs.
How does Apple come up with this huge number? Well, they’re taking into account an awesome economic principle that you might remember from elementary school social studies: the multiplier effect.
Bear with me while I take you back to third grade. Remember when you had those fun lessons about communities and how they grow. To plant his crops, a farmer buys seeds from the grocery store, giving them profit. Then he employs someone to help him tend the fields, giving that worker a paycheck which buys things like food, clothing and a house. Maybe another grocery store buys the farmers product, giving him money to purchase more stuff. The grocery stores employ people as well, who hopefully spend their money. Oh, and don’t forget the truck that delivered the food from the farm to the market. Someone has to drive that thing. And someone else has to perform maintenance on it. And the truck requires fuel which helps the person who owns the gas station, who in turn pays their employees.
You get the picture, right? Businesses and communities are all interconnected. A company can have a positive impact on all of the businesses surrounding them. This is the reason that a failing auto industry wouldn’t have just effected Detroit auto-workers. Every supplier who created parts for car, every dealer who sold the cars, every driver who hauled the cars across the country. Then there’s the government employees working for an area with tax revenue and therefore a smaller budget. They could lose their jobs too. Everyone would’ve all had a harder time if that single industry collapsed.
These economic principles of job multipliers and indirect jobs are pretty common place stuff. Any economic principle explained in less than 500 words can be considered extremely basic. So why is Apple throwing it around like it’s some big new discovery that proves their importance? (When they’ve already established that…)
Well, I think it has to do with 700,000 jobs they’ve created overseas, where a majority of their products are made.
I’m not pointing out that fact to shame the company. Apple is a global enterprise. They’re a business with a profit margin to maximize. They do what’s best for them. And the fact is that they’ve done plenty to help America’s economy.
But, I think it’s very possible that Apple itself is insecure about those 700,000 paychecks that aren’t going to American workers. This might be a scenario where the public relations department doth protest too much. They seem desperate to cement themselves as the most perfect American company ever made, and those pesky foreign jobs are hanging over their head. So in walk some basic economic principles to reassert Apple’s dominance and pound the message home for all of us. Apple is keeping this country going, guys!
Indirect jobs apply to absolutely every business that ever was. The multiplier effect is alive and well, even for the makers of PCs. Every job helps support the economy. Apple’s new claims look more like a desperate public relations ploy than an actual study from an intelligent company.