Politicans think iPhone is American-Made

By Dustin Ensinger, Economy in Crisis In a sign of just how clueless some politicians are about America’s manufacturing crisis, former Republican presidential candidate and current Sen. John McCain claimed over the weekend that iPods and iPhones are made right here in America. McCain made the erroneous claim during an appearance on ABC’s This Week when the discussion turned to America’s dwindling manufacturing base, and its effect on the economy. "I would also point out that…an iPad or an iPhone, those are built in the United States of America. And as the president said, continuously, and I agree with him, innovation is the key to us being able to restore our economy," he said during the segment. It is true that both products are designed in California. But they are wholly manufactured in China, which in itself adds billions to the trade deficit each year. In 2009, it was estimated that sales of the iPhone in the U.S. added $1.9 billion to the trade deficit. With sales expected to continue increasing, that number is certain to grow. Luckily, Leo Gerard, president of the United Steel Workers Union, was also a guest, and set the record straight. “The reality is that when you talk about the high-end stuff — the iPad and the iPhone are made in China, they’re not made in America,” he pointed out. U.S. manufacturing of the iPhone would have wiped away the $1.9 billion loss in 2009, in addition to adding $5.7 billion to America’s export total last year. McCain, however, sees manufacturing moving to low wage nations as a natural progression of the global economy. "I think it's obviously a recognition of the reality and the trends, that cheaper, lower-cost labor products will usually prevail over products made in higher wage and income countries," he said. That doesn’t have to be the case, though. America’s trade policies knock down barriers, exposing Americans to competition from workers in China, Mexico and other low wage nations where workers are paid pennies on the dollar compared with their American counterparts. Still, McCain believes that America should enter into even more trade agreements, lowering more barriers and putting Americans in competition with even more workers that have the playing field tilted in their favor. “We've got to have free trade agreements. I'm glad the president is supporting the South Korea free trade agreement. We basically abandoned Colombia and Panama. All these other countries are concluding free trade agreements amongst themselves while we are being left behind. And that's very harmful,” he said. See original post here