Attention Economy


Sunday, January 21, 2018

Politics versus Economics – Evaluating Recent US Corporate Behavior

Economics may not be driving corporate generosity
https://www.washingtonpost.com/business/economy/economics-may-not-be-driving-corporate-generosity/2018/01/19/a3995d62-f6eb-11e7-91af-31ac729add94_story.html


Apple’s Media Relations Coup – Waving the Flag Makes Business Sense
Slate’s Weismann notes:
“The press release predicts that between its “current pace of spending with domestic suppliers and manufacturers—an estimated $55 billion for 2018—Apple’s direct contribution to the US economy will be more than $350 billion over the next five years.” In other words, Apple will keep buying stuff from other U.S. companies. This is not a patriotic act of charity. Apple is literally saying it will continue business as usual. That alone accounts for $275 billion of its $350 billion forecast.
As for the rest of that total? In a mystifying bit of self-aggrandizement, the company is counting its $38 billion repatriation payment as another “direct contribution” to the U.S. economy. This is money they are required to pay by law. “A payment of that size would likely be the largest of its kind ever made,” the company helpfully notes. This is only true because Apple spent years making money hand-over-fist while doing everything in its power to avoid taxes.”

Related:
https://www.washingtonpost.com/news/powerpost/paloma/the-finance-202/2018/01/18/the-finance-202-trump-is-eager-to-claim-credit-for-apple-moves-but-it-s-a-bit-more-complicated/5a5fa11d30fb0469e88401c2/