Economist Adam Smith's "invisible hand" symbolized unintended social benefits of economic decisions made in self-interest.
There's nothing invisible about the hand Apple revealed this week. The country's largest taxpayer, Apple provides only the latest example of tax cuts creating jobs, raising wages and fueling growth.
The company announced plans Wednesday to bring home nearly all of $252 billion it holds overseas. Tax cuts passed by Congress in December contain a provision that allows one-time repatriation of corporate cash brought into the United States. Apple will make a $38 billion payment to the federal government after bringing it ashore.
"For years, Apple had said it would not bring its foreign earnings back to the United States until the corporate tax code changed, because such a move would be too costly," explained a New York Times news story.
This means considerably more than an infusion of $38 billion in tax revenues. That's the small story.
The bigger angle is Apple's plan to invest the repatriated capital into 20,000 new domestic jobs, nearly a 25 percent increase in the company's domestic workforce.
The liberated capital will also fund a new Apple campus. Apple will announce the location in 2018, and we can think of no better place than Colorado Springs.
Mayor John Suthers, Gov. John Hickenlooper, the chamber of commerce, business leaders, county commissioners, legislators, Colorado Springs Utilities and city council should begin working to attract Apple to the Pikes Peak region.
"Over $10 billion of Apple's expanded capital expenditures will be investments in data centers across the US," explained an Apple news release announcing migration of its foreign assets to the United States.
Apple's domestic facilities are powered 100 percent by solar, wind, micro-hydro and other renewable sources, and few locations can compete with Colorado Springs for unobstructed sun.
The company's new confidence in the economy has it using the repatriated capital to increase its Advanced Manufacturing Fund by 400 percent, from $1 billion to $5 billion. The fund supports innovation and helps innovative manufacturers establish operations in the United States.
"Apple is a success story that could only have happened in America, and we are proud to build on our long history of support for the U.S. economy," said Apple CEO Tim Cook. "We believe deeply in the power of American ingenuity, and we are focusing our investments in areas where we can have a direct impact on job creation and job preparedness. We have a deep sense of responsibility to give back to our country and the people who help make our success possible."
Each week since the enactment of tax cuts, which haven't kicked in, brings a longer list of companies raising wages or handing out bonuses. Those are just the big ones that make news. One can safely assume small businesses are likewise investing in employees and expansion, as invisible hands that don't make headlines.
A new federal rule that ratchets down regulations gives business owners and investors additional confidence of less costly interference that jeopardizes revenues.
If businesses big and small continue betting on success, investing tax savings in people and anticipated profits, the country could unite around record-breaking economic growth that will benefit all.
Never count on government programs to heal this country and care for people of all ages, ethnicities and socioeconomic backgrounds. Count on the limitless might of the world's greatest economy and billions of "invisible hand" transactions.
Unleashed from burdensome taxes and regulations, our economy can provide unfathomable improvements to the quality of our lives.
REPRINTED FROM THE COLORADO SPRINGS GAZETTE
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