Combining new investments and Apple's 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, not including Apple's ongoing tax payments, the tax revenues generated from employees' wages and the sale of Apple products.
iPhone maker Apple announced today that it is making immense investments in the U.S. economy including building a new campus at an as-yet unnamed location and hiring 4,000 new workers a year for the next five years, many of whom will be employed at existing data centers.
Each day we read about amazing technology breakthroughs, particularly when it comes to artificial intelligence (AI). But if AI is so great, why are these breathtaking technological achievements not matched with soaring productivity and economic growth? Or, to paraphrase an old jibe: If the economy is so smart, why aren’t we all rich?
The high profile move by the United States to drastically cut corporate taxes has increased the pressure on other economies to hand out similar incentives to keep investors on their shores.
A major trade association representing the technology industry on Monday announced its formal support for the final version of the GOP tax bill. The Information Technology Industry Council (ITI) said in a letter to members of Congress that it believes the bill will benefit the technology industry.
S&P Global believes that a dual-pronged effort of increasing entry and retention of more women to the American workforce, particularly those professions traditionally filled by men, represents a substantial opportunity for growth of the world’s principal economy, with the potential to add 5%-10% to nominal GDP in just a few decades.
The number of technology-based start-ups surged 47 percent in the last decade. These firms still account for a relatively small share of all businesses, but they have an outsized impact on economic growth, because they provide better-paying, longer-lasting jobs than other start-ups, and they contribute more to innovation, productivity, and competitiveness.
Republicans and major technology firms who support a tax overhaul have touted reforms that they say will bring offshore profits back into the country, boosting U.S. tax revenue and benefiting the economy. But critics are skeptical of those claims, doubting that both the House and Senate versions of the tax bill give companies like Apple the incentive to bring money into the U.S. over the long term.
CFRA analyst Scott Kessler estimated in October that Apple, Cisco, Microsoft and Oracle would be the biggest beneficiaries of a lower tax rate on repatriated earnings. Indeed, Apple CEO Tim Cook has said he would want to invest more in the U.S.
Annual worldwide corporate R&D spending broke through $700bn in annual investment, according to an annual analysis of R&D spending across 1000 global public companies by PwC’s Strategy&. It shows corporate R&D spending increased a steady 3% in the past year, bouncing back from less than 1% increase previously.