Apple says that it won’t unlock the phone of the San Bernadino terrorists, despite the fact that the government has a perfectly legal warrant, because it is protecting privacy. Of course, given the broad surveillance of other government agencies, many people think that this is a good thing, that Apple is “standing up” for American citizens, and even for foreign dissidents who might be put in danger.
But I wonder how Apple became the moral arbiter of what is right in this issue. This is the company that is defiantly refusing to bring any of its profits back to the U.S., because, according to Tim Cook, it will be taxed at 40%. So Apple is keeping billions of dollars in offshore accounts, that aren’t taxedin those countries either. Apple is the most profitable business that ever existed: in 2015, Apple’s profits topped $200 billion, and 89% of that is being kept offshore. See: Tim Cook's Headache. Even Apple’s investors are beginning to demand their capital back.
Let’s do some quick math. Eighty-nine percent of 200 billion is 178 billion. If Apple brought back only half of that, it would be 89 billion. And if Apple paid 40% taxes on it (which I doubt but don’t know how to check), that would be $35.6 billion going into the U.S. budget. (Money for Flint, perhaps? With plenty left over for …. ) Apple itself estimated that bringing home the $69.7 billion in earnings on which it hasn’t taken a charge would cost about $23 billion in U.S. taxes. But Apple has spent $4.1 million in federal lobbying, a lot of it directed at changing tax laws.
Another point: In 2012 Apple promised to bring manufacturing jobs back to the U.S. I haven’t read anywhere that it did, but Tim Cook promised to spend $100 million to do so at that time. Mind you, that year Apple spent $10 billion on the tools and equipment needed to make its products. The vast majority of Apple’s manufacturing is done in China. Despite Apple’s promises to improve labor practices there, low wages and long hours persist at the iPhone factory. Workers earn about $1.85, and the standard shift is nine hours a day. Starting in September, staff worked an additional minimum of 20 hours of overtime each week, bringing their weekly salaries to about $753.
So, my questions are:
1. By what right does Apple claim any moral superiority to a government to which it brags that it doesn’t pay taxes? In fact, how can Apple cloak itself in morals and ethics, given all of the above?
2. How can any Bernie supporter enthusiastically support his values and his demand to get corporate financing out of the political process, and simultaneously laud Apple’s practices and its defiance of the government’s legally obtained warrant — to try to prevent terrorism, no less? Many continue to buy Apple’s products, thereby directly supporting Apple’s lobbying.