A quarter of a century ago, almost every fifth dollar of the American gross domestic product came from industrial production. Currently, only every tenth and current trend indicates that it will continue to fall. This process inevitably led to considerable social problems in the states belonging to the so -called Rust belt, i.e. in Michigan, Ohio or Pennsylvania. And so it happens that these are the states belonging to the so -called swing statesi.e. those that often decide who becomes president. Donald Trump wants a renaissance of industrial production, factories and the production of tangible products in the USA. And not just clouds, app, California and AI.
It may even have its justification politically, but less. Let's go back to our iPhone. According to JP Morgan analysts, the price of this smartphone consists of 49 percent. parts, in 45 percent Apple margin. The answer to the question I asked at the beginning is … 3 percent. Only 3 percent The iPhone values are due to the process of its assembly. If we think about it for a while, it turns out that it makes sense. After all, Steve Jobs's genius speaks to us from every smartphone – in particular Apple. Quite a lot of the value of these devices are also the materials we use – non -lesing screens, light components, miniature integrated circuits, etc. There is also nothing to hide, that Apple or Google draw a lot of profits from the fact that we install various apps, pay for subscription and watch ads. And that someone has to submit it all somewhere? Well … I think the magic of smartphones is not a derivative of screw screwing.
Donald Trump versus marketing
Life does not end with smartphones. Let's take T -shirts or Nike shoes. I don't think anyone needs to be convinced that a large part of the price we pay for them results from the value of the stamp itself, called Swoosh. This is the effect of billions of dollars pumped in design and marketing since 1984, when Nike signed a contract with a promising basketball player Michael Jordan. Examples could be multiplied, but the inexorable truth is that The value of the products we buy in stores is very little determined by the very process of their assembly. Meanwhile, Trump clearly wants these activities to be performed in the USA And almost all participants of the financial markets tell him that this is a pyramidal mistake. Anyway, according to one of the economic models run by the American Central Bank, the US economy in the first quarter of this year shrunk by 1-2 percent. And yet Drakon duties did not even start working.
3 percent iPhone values
Even if we assumed that there is a method in this madness and that ultimately Trump will get its own and in every country in the USA will be a constant factory of washing machines, clothes or cars, it remains an important issue of the way it is all implemented. I will even skip the mathematical pattern, which Trump used in the rose garden during his liberation day (malicious ones would add “from economic growth”). The American economy is a complicated creation in which everything is combined with everything. Added to this are international transactions, stock exchange, banks. Specialists work in each sector of the economy who are trying to identify trends and react to them. At the same time, the greater the uncertainty about the future, the greater our reluctance to make important decisions, for example about new investments. This text appears during the picnic and probably some of the readers left somewhere. An important factor for many was to check the weather forecast. Finally, grilling at the grad and storms will scare even the most die -hard's neck supporters. Let's imagine that no one showed us weather forecasts. Let's go further – let's imagine that the creators of weather forecasts are specially trying to mislead us, and to make matters worse, they change their mind twice a day, and once they say that there will be snow and frosts, and once that 30 degrees in the shade. We would then be more or less inclined to risk our own money and go to the bosom of nature?
Read also at Business Insider
In my opinion, companies in the USA and around the world must now be found in such an economic environment. And this may be the biggest problem with Donald Trump's great plan. And all this in the name of 3 percent. iPhone values …
Author: Bartosz Pawłowski, president of MTFI
