Steven

Tim Cook of Apple gave a really interesting interview a couple weeks ago. And he said, you might think that we manufacture iPhones in China because it's cheap labor. And he said, that's not really true anymore. It used to be, but China is not the cheap labor country anymore. That's moved on to Bangladesh and Cambodia and other places. The reason they manufacture in China is expertise.

Tim Cook of Apple gave a really interesting interview a couple weeks ago. And he said, you might think that we manufacture iPhones in China because it's cheap labor. And he said, that's not really true anymore. It used to be, but China is not the cheap labor country anymore. That's moved on to Bangladesh and Cambodia and other places. The reason they manufacture in China is expertise.

And I think it's okay to admit and people should admit that your country and also your company and you individually can be very good at some things and not very good at others. China is just extremely good and extremely talented at particularly like low-end manufacturing. Low-end can be anything from inflatable swimming pools on up to like basic electronics. They're extremely good at it.

And I think it's okay to admit and people should admit that your country and also your company and you individually can be very good at some things and not very good at others. China is just extremely good and extremely talented at particularly like low-end manufacturing. Low-end can be anything from inflatable swimming pools on up to like basic electronics. They're extremely good at it.

I was talking to a CEO a couple of weeks ago and he said, and he's generalizing here, but he said, if you go to a Chinese factory and you say, I want this part made, and here's step one, step two, step three on how to make it, they will do it better than anybody in the world. Nobody can beat them at that.

I was talking to a CEO a couple of weeks ago and he said, and he's generalizing here, but he said, if you go to a Chinese factory and you say, I want this part made, and here's step one, step two, step three on how to make it, they will do it better than anybody in the world. Nobody can beat them at that.

But if you go to that same factory and you say, please go design me a new part, they're not very good at it. Americans are way better at that. And that's why the back of your iPhone says designed in California, made in China. Like it's just specialization of labor. And I think America is the best in the world at a couple of things.

But if you go to that same factory and you say, please go design me a new part, they're not very good at it. Americans are way better at that. And that's why the back of your iPhone says designed in California, made in China. Like it's just specialization of labor. And I think America is the best in the world at a couple of things.

entrepreneurship, technology, services, and like high-end manufacturing like planes and rockets. And we're not the best in the world at low-end manufacturing. And that's okay. That's not an insult. That's not a put-down. There's specialization of labor. And so I think China just got very good at one thing during a time when we've always been very, very good at different things.

entrepreneurship, technology, services, and like high-end manufacturing like planes and rockets. And we're not the best in the world at low-end manufacturing. And that's okay. That's not an insult. That's not a put-down. There's specialization of labor. And so I think China just got very good at one thing during a time when we've always been very, very good at different things.

And I think that is why global – like why – for a lot of people, not for everybody. So if you disagree with this, I get it. By why the economic system works so damn well over the last 30 years is because we really got good at specialization of labor. You design the iPhone, you make the iPhone, we're both better off for it.

And I think that is why global – like why – for a lot of people, not for everybody. So if you disagree with this, I get it. By why the economic system works so damn well over the last 30 years is because we really got good at specialization of labor. You design the iPhone, you make the iPhone, we're both better off for it.

I think when I watch that, I think I can understand why there'd be a natural reaction for people to be like, no, if they can do it, we can do it too. And again, I don't think it's an insult when to say like countries are like, we're really good at some things and less good at others. How could that not be true?

I think when I watch that, I think I can understand why there'd be a natural reaction for people to be like, no, if they can do it, we can do it too. And again, I don't think it's an insult when to say like countries are like, we're really good at some things and less good at others. How could that not be true?

I mean, so much of it is, you know, if you asked Americans to work for those wages, they would absolutely refuse to do it just because of the expectations we have. And that's a good thing. We should be proud of that, that we have a standard of living, which does not allow or people would not put up with earning... $5 a day or whatever it would be.

I mean, so much of it is, you know, if you asked Americans to work for those wages, they would absolutely refuse to do it just because of the expectations we have. And that's a good thing. We should be proud of that, that we have a standard of living, which does not allow or people would not put up with earning... $5 a day or whatever it would be.

Right, right. And, you know, this is where I understand why people might raise an eyebrow at this, but so much of why, of what the modern system, how it's supposed to work is when you have that specialization, products become cheaper.

Right, right. And, you know, this is where I understand why people might raise an eyebrow at this, but so much of why, of what the modern system, how it's supposed to work is when you have that specialization, products become cheaper.

And then the iPhone costs $1,000, when in any other world, it would cost $4,000 if we're building it in the United States at paying wages that people would put up with in the United States.

And then the iPhone costs $1,000, when in any other world, it would cost $4,000 if we're building it in the United States at paying wages that people would put up with in the United States.