Pluralist Empowerment versus Populism or Democratic Elitism

A rising discourse on the dangers of ‘populism’ seems to be expanding the concept in ways that literally demonise the empowerment of citizens – the people. There is evidence of a rise of populist parties, but that is being used as a hammer to bash a more general empowerment of individuals or citizens and networks among the public as dangerous.

This may be a consequence of too simplistic of a dichotomy being drawn between the empowerment of individual citizens and the empowerment of democratic institutions, such as elected and appointed officials, or a tradeoff between the ‘people’ versus ‘elites’. Instead, the role of the Internet and social media in helping individuals to be more informed and better able to hold politicians, business and government more accountable is also an element in the increasing vitality of democratic pluralism.

To make my case, it is useful to go back to some of the key terms in describing different forms of democratic control? So let me try, and ask others to correct me if I don’t get this right.

Pluralistic forms of democracy emerged inductively from studies of power structures. It conveys the degree that ideal forms of democracy are an impossible dream, but one feasible approximation of democratic control in practice is through governance by a pluralistic set of elites. While the few who are active, knowledgeable and committed to an issue are likely to govern the many, in the sense of Michel’s (1915) ‘Iron Law of Oligarchy’, elite empowerment in modern liberal democratic states is relatively democratic in that it is specialised across separate sets of elites. Elites influential in education, are not influential in defence, and so on. We have separate and pluralistic elites, including politicians and public officials, and this pluralistic control is more democratic than influence being concentrated in a single set of elites. The concept of pluralistic democracy is linked to many, but perhaps most often to Robert Dahl and his classic, Who Governs? (Yale Un Press, 1961), which described the power structure of New Haven, Connecticut.

Pluralism is most often contrasted with elite control, which generally assumes that power is concentrated in a relative small set of economic elites. While government most often held formal symbolic power in cities and nations, real, informal power was lodged primarily in the hands of a so-called ‘power elite’ of those with the wealth and institutional resources to control public affairs. This concept has been linked to the work of Floyd Hunter’s Community Power Structure (Un of North Carolina Press, 1969), as case study of Atlanta, Georgia, and before this, to C. Wright Mills’ The Power Elite (Oxford University Press, 1956).

Compared to an elite power structure, pluralism was good news. Economic elites might be powerful with respect to some issues, some of the time, but others are powerful as well, including public officials, the press, educators, and so forth in their particular areas of expertise and focus. But an interesting normative twist on the value of pluralistic democracy was the notion that this is not only the most feasible form of democratic control in practice, but also the most desirable. This is because, according to those adhering to what has been called ‘democratic elitism’, it is only the elites in society that will protect democratic institutions and processes. This and other elite theories basically assume that:

‘the masses are inherently incompetent’ … and ‘at best, pliable inert stuff or, at worst, aroused, unruly creatures possessing an insatiable proclivity to undermine both culture and liberty.’

Peter Bachrach, The Theory. of Democratic Elitism: A Critique (Little, Brown and Company, 1967: 2)

Citizen therefore should rely on a pluralistic set of elites to govern, as they have the expertise and judgement, honed by democratic values, to rule. For example, while Americans might agree with freedom of expression as a basic human right in the US, they are unlikely to protect freedom of expression in particular, concrete circumstances, such as by not allowing an extremist to speak in one’s community or online. So those who adhere to the concept of democratic elitism generally support pluralistic elite rule as not only feasible but also desirable, given that the public at large is by and large too fragmented, unorganised, and ill-informed to govern, except in limited respects, such as voting for elected officials (also E. E. Schattschneider, 1960).

In the digital age, the rise of the Internet, social media and related information and communication technologies, such as mobile Internet, has been associated with the empowerment of individuals and networks of citizens, what I have called the rise of a Fifth Estate (Dutton 2009). Put in the most simple terms, the idea of the Fifth Estate is that use of the Internet and social media can enabled digital citizens to get access to information and network in ways that can enhance their communicative power relative to others and enable them to hold governing elites more accountable. The empowerment of individuals does not mean that these digital citizens are antagonistic to elites, but that they realise that intelligence is widely distributed and that the Internet enables them to get access to information and networks more easily and effectively than ever before.

For example, when a patient goes to a doctor, they might search for information about the problem diagnosed by the physician to learn more about what problem they have and how it is treated. This does not mean that they quit going to a doctor, but that they can have a more informed discussion with their doctor, such as by being able to ask intelligent questions. In other words, information and expertise is more distributed, less concentrated in the physician.

In contrast, populism tends to view elites self-interested or corrupt to the point that they do not trust such elites as elected officials or scientists. This is the problem as populists may fail to listen to experts and authorities in particular matters because they don’t trust elites in general. The reaction to rising signs of populism has been an increasing reification of democratic institutions and processes, and a demonisation of the people – a return to democratic elitism but in the digital age.

I’m an inductivist and see pluralist democracy as achievable and desirable, and more pluralism as a positive step for democratic control. The empowerment of digital citizens, such as suggested by the rise of a Fifth Estate, is therefore a contribution to the ideals behind democratic control. A fear of the people gaining more influence generated by the rise of populism is feuling the return of a democratic elitism unfit for the digital age. Just as populists are wrong to dismiss experts and authorities, it is wrong for elites to dismiss the people as a modern day digital mob.

 Trust in the Public
Trust in Elite InstitutionsLowHigh
HighDemocratic ElitismPluralist Democracy
LowBroken DemocracyPopulism

Democratic pluralism suggests that we use the Internet and related ICTs to inform, educate, and empower digital citizens, not to distrust them as incapable or unruly and dangerous. Likewise, it suggests that digital citizens retain a learned level of trust in elites and institutions, while being comfortable with maintaining a level of scepticism in any given pronouncement, opinion piece, or policy, because they are equipped with the tools to discover information and participate in networks of individuals that can inform and empower their understanding of policy and practice.

The Fifth Estate can broaden democratic processes at every level, from the household or neighbourhood to globe, but only if digital citizens respect the role of other actors, including experts, as sources of information and learn how to distinguish the valid arguments from deluded conspiracies.

References

Bachrach, Peter. (1967), The Theory of Democratic Elitism: A Critique. (Boston: Little, Brown and Company).

Dahl, Robert A. (1961) Who Governs? New Haven, CN: Yale University Press.

Dutton, William H. (2009), ‘The Fifth Estate Emerging through the Network of Networks’, Prometheus, Vol. 27, No. 1, March: pp. 1-15.

Dutton, William H. (2015), ‘The Internet’s Gift to Democratic Governance: The Fifth Estate’, pp. 164-73 in S., Moss, G., and Parry, K. (eds),Can the Media Save Democracy? Essays in Honour of Jay G. Blumler. London, Abington: Palgrave Macmillan. 

Michels, Robert (1959), Political Parties, trans. by Eden & Cedar Paul. New York: Dover Publications, Inc.

Mills, C. Wright (1951), The Power Elite. Oxford: Oxford University Press.

Schattschneider, E. E. (1960), The Semi-Sovereign People: A Realist’s View of Democracy. (New York: Holt, Rinehart and Winston).

Voices from Oxford – a New Spring

While not surprising, one of the delightful aspects of returning to Oxford has been seeing the continued success of Voices from Oxford (VOX), which I helped found with Sung Hee Kim and Denis Noble in the early years of directing the OII. During the four years I was back in the USA, Sung Hee and Denis did not just keep VOX alive and well, but grew it in stature and impact within and beyond the University. VOX is independent of the University of Oxford, driven by the voluntary contributions of Denis and Sung Hee, and myself, but with the aim of bringing the ideas and work of faculty and students at Oxford to the wider world by way of accessible videos of key events, lectures, and interviews. While the idea began to take shape in 2003, VOX has accumulated approximately 1,000 productions available freely online.

In April, on the 19th, a group of 110 L’Oreal executives from Korea came through Oxford, and VOX worked with the organisers to visit Balliol College and hear from Professor Chris McKenna, a Reader in Business History and Strategy from the Saïd Business School, given at Rhodes House, focused on the ‘Fourth Industrial Revolution’. Professor McKenna is involved with a project on the history of capitalism, and his lecture captured the centrality of growing scale, innovation, path dependencies, and the social construction of technology throughout the history of industrialisation.

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Dollar Waiting on a Nickel: Life and Work Online

I planned to spend all of my day writing, but instead, I spent the entire day trying to deal with problems with routers, software, browsers, etc. My router disconnected from my printer, and reconnecting is not straightforward. I received proofs for a book review from a publisher, who insisted I use their browser and their editing software to amend my proofs, which caused hours of wasted time. In the end, I refused to download their software just to make a few minor adjustments.

via Arthur Berger

I had a father-son team of carpenters working at my home once, and they kept saying to each other that one had a ‘dollar waiting on a nickel’. They had a major job to do that was waiting for a trivial job to be completed. This is becoming my life online. Increasingly it is difficult to do real work while trying to cope with the increasingly complicated packages of hardware and software that raise untold numbers of new problems on a daily basis.

I am so old and senior that I am increasingly moving to the strategy of telling those who insist that I use their system, their form, their preferred browser, their software, and their time frame, to simply read my email. No thank you.

Thank you again, Lord Ashdown

Lord Ashdown died on 22 December 2018 at 77 years of age, and was buried in Somerset this week on 10 January 2019. After serving as a Royal Marine, and serving years as leader of the Liberal Democratic Party and an MP, his life has been celebrated by many.

It may seem small, but I can’t help but remember Paddy Ashdown for helping me and my colleagues by taking the time to speak at the last international conference of the Programme on Information & Communication Technologies (PICT) in 1995. The conference was entitled ‘The Social and Economic Implications of Information and Communication Technologies’, and was held at The Queen Elizabeth II Conference Centre, Westminster, London, from 10-12 May 1995.

The Rt. Hon Paddy Ashdown agreed to do the keynote of the conference, and he was joined by other parliamentarians, including John Battle, Kenneth Baker, Richard Caborn, Chris Smith, Ian Taylor and Sir Kenneth Warren. The event, and Paddy Ashdown’s keynote, was a capstone to one of the first social science research programmes focused on information and communication technologies, such as the Internet. It was sustained by two phases of research grants from the UK’s Economic and Social Research Council (ESRC). I was national director of this programme during its last years, following earlier directors, Bill Melody and Nicky Gardner. It gave me the opportunity to work with such great colleagues as Martin Cave, Richard Collins, Rod Coombs, Jane (Yellowtrees) Douglas, David Edge, Wendy Faulkner, James Fleck, the late Chris Freeman, Nick Garnham, Andrew Gillespie, John Goddard, Leslie Haddon, Christine Hine, David Knights, Sonia Livingstone, Stuart Macdonald, Robin Mansell, Ian Miles, Geoff Mulgan, Hugh Willmott, Vince Porter, Paul Quintas, Kevin Robins, the late Roger Silverstone, Colin Sparks, John Taylor, Juliet Webster, Robin Williams, Steve Woolgar, and many many others.

PICT was a successful research programme that paved the way for a series of research programmes to follow on its heels and together make an incredible difference in the way people in the UK and worldwide think about the societal implications of the Internet and related information and communication technologies. I’m not sure if those who contribute their time and efforts to supporting academic research, as Paddy Ashdown did, realise how their contributions make a difference and are remembered. So thank you again, Lord Ashdown, for seeing the significance of what we were doing and supporting it with your presence – well before the significance of the new technologies were widely recognised.

Lord Paddy Ashdown

Just Say ‘No’ to Completing a Form: Another Bane of the Digital Age

I’ve complained before about the growing demands online for us to complete forms to do just about anything – I called it trapped in a Web of forms. Well, my writing about it has not solved the problem. Just today I agreed to do a book review, only to then get a formal thank you, and note which basically said I must submit my review through the publisher’s central manuscript site. OK, I cannot just write the review and email it to the book review editor, as that would be too much trouble for the editor.

Predictably, I will now be required to log into this central manuscript site. I have almost certainly used it before, for some paper or journal submission, but who knows when and I can assure you I will not remember the passwords etc. So I will need to fill out the joining instructions once again, and probably have difficulty, with notes like, this email has been used before, etc. I will spend useless time getting set up, formatting my review in a manner that the site likes (not me), and submitting it. So all the fun of reading the book and writing a review is lost already – well before I’ve received the book.

Why do I say “yes” to such offers – let’s say requests? I need to set up a form for any request to me with something like the following questions: Name, other information I do not need, then “Will I need to fill out a form in order to satisfy your request?” If yes, then I might add the question: “Can you complete the form for me?” If no (inevitably it will be no, as these folks do not take their own medicine), then the tick box should not permit the person to tick “No”. The requester will become so frustrated that s/he will decide to stop wasting his/her time on this bloke, and go on to ask some other sucker.

Just today, I am sure I had to complete at least four forms, and most required me to fill out other forms to complete the present form. I understand why people want others to do their work for them as they have simply too many things going on to do the work themselves. This should scream to them that they are trying to do more than they can do, and stop or slow down. This template society we are creating is clearly the road to madness. … Must blog about this!

Internet Don by Arthur Asa Berger

Getting to a Brexit Strategy: Focus on the Process

Press coverage of Brexit negotiations is focused on the politicians in support of different exit strategies, from a no-deal Brexit to no Brexit at all. As one consequence, the debate then focuses on whose right or wrong and why. All very newsworthy, but not an approach to reaching any consensus on the approach the UK or the EU should take. It is an approach to cementing divisions.

In today’s climate of polarization, and the normalization of hate from each side, it might be difficult to recall, or even give some thought to, a literature focused on resolving differences of opinion. One of my favorite treatments of this issue was a book entitled ‘Getting to Yes: Negotiating Agreement without Giving In’ by Roger Fisher and William Ury of the Harvard Program on Negotiation  (Fisher, Ury and Patton 2011 [1981]). It spoke to the processes likely to support a negotiated resolution of conflicting positions, which identified some general rules that could help reach a consensus on contentious issues, such as focusing on the interests of different stakeholders rather than their positions in the debate – whose right and whose wrong.

Decades ago, I read this book when puzzling over how to make sense of my study of how computer models were being used in the policy process (Dutton 1982; Dutton and Kraemer 1984). My colleagues and I were looking at how computer models were shaping urban development decisions in the US, since local governments were adopting models that purported to project the fiscal impact of alternative decisions, such as urban infill versus sprawl. Such decisions were in no way as major as Brexit, but they were nevertheless very contentious, promising to reshape everything from the economic vitality of the city to the racial composition of neighborhoods.

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My colleagues and I were skeptical of the role that models could play in such a contentious process. We realized it was naïve to expect models to simply enable a more rational decision by providing more reliable forecasts of the outcomes of different alternatives. At the same time, we were not convinced that modeling was simply a tool for supporting partisan political decisions, using models to provide support to positions and decisions that had already been made.

What we found was far more interesting. The modeling process was inherently political, but political in ways that helped the contending parties to reach a negotiated consensus on the likely outcome and therefore to help reach a decision. For instance, the modeling process helped focus debate on the assumptions of the model, rather than on the positions of parties to the debate. Stakeholders began to focus on what outcomes should be forecast, rather than which decision they supported. In such ways, the modeling process provided a boundary spanning object and a process for stakeholders to understand the likely outcome of alternative decisions.

The success of this approach was evident is some unanticipated consequences. For example, by the time the modeling process was near completion, all the stakeholders tended to agree on the likely outcomes. This was so much the case that no one was really interested in reading the final report – the stakeholders already knew what should be done. If all the major stakeholders are represented in the modeling process, then they are brought along through this process such that the final report is old news.

My sense from a distance – informed only by press coverage – is that the proponents of different Brexit strategies are marshalling evidence and arguments for their own positions. They are not sitting around the same table trying to understand the likely outcomes of alternative strategies. Getting the right stakeholders within and across the EU and UK around a single modeling process could be one way to gain some level of consensus on the most sensible way forward.

A major limitation of such an approach is the degree that democratic and ethical concerns can be more critical than information about the outcomes of any decision. However, at this moment, most debate is focused on the Brexit strategy, and not whether or not to exit the EU, which is the decision most fraught over respecting the outcome of democratic process, regardless of the purported outcomes. So to the degree that this remains the case, and the focus remains on strategies for exiting the EU, then all parties in the EU and the UK should have a major stake in getting to yes.

References

Dutton, W. H. (1982), ‘Computer Models in the Policy-Making Process,’ Information Age, 1 (2), 86-94.

Dutton, W. H. and Kraemer, K. L. (1985), Modeling as Negotiating: The Political Dynamics of Computer Models in the Policy Process, Norwood, NJ: Ablex Publishing Corporation.

Fisher, R., Ury, W., Patton, B. (2011) [1981]. Getting to Yes: Negotiating Agreement Without Giving In (3rd ed.). New York: Penguin Books.

Visiting Leeds University and Jay G. Blumler

I had a short but pleasant visit to the School of Media and Communication at the University of Leeds that provided me an opportunity to catch up with new and old colleagues. The School has made some brilliant new hires, such as Christopher Anderson. Chris is finishing his first year at Leeds with a new and timely book, forthcoming in 2018 through Oxford University Press, entitled Apostles of Certainty: Data Journalism and the Politics of Doubt.

The University of Leeds is also home to one of my oldest and enduring colleagues, mentors and friends in the UK, Professor Jay G. Blumler.  Jay first took a position at Leeds as Granada Television Research Fellow in 1963, going on to direct his Centre for Television Research. He has taught at a number of universities since, but continues his affiliation with Leeds today as an Emeritus Professor.

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Jay and Bill, 2018

On my very first trip to Leeds in the early 1980s, I stayed at Jay’s home, and recall watching Top of the Pops with his family. Lo and Behold, a rerun of that classic was on television decades later, when I walked back into Jay’s home after dinner this past Friday evening. But a more important, enduring feature of my return, was Jay’s continuing pursuit of creating – not just listening to – music, a charming aspect of his entire career. For example, Jay often entertains his academic audiences with brief refrains from a wide range of songs. He has a clear, baritone voice that led to him being involved in, and most often organizing, all sorts of singing groups throughout his life – a topic we discussed that evening.

Even before I was born (if you can imagine that), in 1944, Jay was part of a quartet of American servicemen studying Russian language at Georgetown University. They called themselves ‘The Four Freedoms’, playing off of FDR’s Four Freedoms speech, given in 1941.  A colleague who heard them sing arranged for Jay and his quartet to perform at a recording session for the Folk Song Division at the Library of Congress (photo below).

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In 1946, while still stationed in Berlin, Jay was Chair of the American Veterans Committee, a group he helped found and organize in Berlin. In that role, he was invited to have tea with Eleanor Roosevelt when she visited the city. She had heard of some of the charity work the committee had done and asked to meet with them. A diary of her day in Berlin mentions her conversations at a ‘soldiers club’ in the last paragraph.

After the service, Jay taught Social and Political Theory at Ruskin College, Oxford, serving several years as Resident Tutor at the Rookery, later called the Ruskin College Academic Building. As the tutor, he formed another group, called ‘Jay and the Rooks’ (photo below).

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Jay and the Rooks

If you ever have the opportunity to visit with Jay, don’t hesitate to ask him if an appropriate tune comes to mind. It will. I am delighted that Jay decided to pursue an academic rather than a singing career, as he has done so much to advance the field of communication, such as in serving as President of the ICA, and advancing studies of political communication in particular. However, I am so happy that he has found ways to spice up his and others’ academic presentations with an occasional song.

Notes

Jay G. Blumler on Wikipedia: https://en.wikipedia.org/wiki/Jay_Blumler

Pick up the phone!

Ofcom reports that fewer people are using their mobile phones for making phone calls (Williams 2018). The use of smartphones for calls is declining while their use for texting, emailing, searching and using social media is rising. Clearly, this trend is not unique to the UK, nor is it simply limited to the use if smartphones. But I fear this interesting trend masks a more fundamental shift in communication: Put simply, more people are choosing not to speak with others – by phone or in person.

To illustrate, here is a typical conversation I would have with a former office assistant (OA) in my former university. She was a valued member of our team and went off for an exciting move when her husband was offered a better job. But here was a typical scenario:

Me: Has the approval for our research travel come through?

OA: No. I sent an email two days ago. No word yet.

Me: Could you check, and try to nudge them? We need to move ahead.

OA: OK. I’ll send another email.

Me: Maybe it would be easier if you just picked up the phone? Actually, the office is close – maybe you could pop in a speak to the grant officer.

OA: Its easier to email, and she’ll see it.

Me: OK.

I stew for a moment and then walk the few minutes to the grant office, speak with the officer, and get the approval. All the time I am wondering why no one wants to simply pick up the phone or walk down the hall. Perhaps (undoubtedly) it is more efficient for the OA to email, but not for me waiting for approval. Perhaps the OA doesn’t want to disturb or interrupt the grant officer, but my work is effectively stalled. Am I simply being selfish or is my OA simply following a rational path that is not only the easy way but the contemporary way to do things?  Unknown

Of course, this is a simple anecdote, but it happens so often that I cannot help but wonder how pervasive this style of communication is becoming. When I have shared this view with administrators, they acknowledge this as a growing pattern. And it is not just email, but also so-called enterprise platforms for conducting all sorts of financial, administrative, and personnel matters. Ask about health benefits, and I’m told to check or enroll on our enterprise business system. Of course, these systems are designed to permit fewer administrators to handle more personnel. But ironically, it might also lead to inefficiencies and ineffectiveness, such as sending an email rather than picking up a phone or speaking with the right person.

Maybe I am wrong. Video and voice over IP enables applications like Skype, Google Hangouts, and FaceTime that are permitting more interpersonal conversations to occur among people distributed around the world. And since the 1970s, when people expected electronic telecommunications to enable tradeoffs with travel, research has found that telecommunications tends to reinforce travel as we telecommunicate with those we meet with face-to-face before and after meetings. If we email someone, we are more likely to meet them face-to-face, and vice versa.

But I wonder if we have reached some tipping point where this might well be changing – a point when it is getting increasingly difficult to speak with anyone face-to-face or even on the phone.

Reference

Zoe Williams, ‘It’s so funny how we don’t talk any more’, The Guardian, Friday, 3 August 2018: 5.

 

 

Citizen Sensing of Broadband Access

I had the opportunity to work with Merit, Michigan’s research and education network, and the Quello Center at MSU, who have teamed up on a comment to the US NTIA on how to enhance indicators of broadband access. The comment provides an innovative approach to consumer sourcing of broadband availability data that builds off the FCC’s initiatives with crowd sourcing, but also leverages the strategic advantages of Merit, as a research educational network that covers the State of Michigan. If successful, this approach has the potential to be scaled nationally. The comment provides an overview of current approaches, the potential of consumer-sourced data, and an outline of their approach.

Comment is posted at: https://www.ntia.doc.gov/files/ntia/publications/quello_merit_commentsdocket_no.180427421-8421-01.pdf

Why President Trump’s trade tariffs might not work, a post by J. Dedrick, G. Linden, and K. L. Kraemer

We estimate China only makes $8.46 from an iPhone – and that’s why Trump’s trade war is futile

Jason Dedrick, Syracuse University; Greg Linden, University of California, Berkeley, and Kenneth L. Kraemer, University of California, Irvine

The Trump administration’s tariffs on China have so far targeted mostly industrial goods like aircraft engines and gas compressors. But the administration has also threatened to slap tariffs on US$200 billion in other goods if the dispute continues.

No list of all the goods that might be subject to tariffs has been released, but it would have to include consumer electronics, such as smartphones, which is the largest single product category in China’s exports to the U.S.

One well-known product that might be affected is Apple’s iPhone, which is assembled in China. When an iPhone arrives in the U.S., it is recorded as an import at its factory cost of about $240, which is added to the massive U.S.-China bilateral trade deficit.

IPhone imports look like a big loss to the U.S., at least to the president, who argues that “China has been taking out $500 billion a year out of our country and rebuilding China.” One estimate suggests that imports of the iPhone 7 and 7 Plus contributed $15.7 billion to last year’s trade deficit with China.

But, as our research on the breakdown of an iPhone’s costs show, this number does not reflect the reality of how much value China actually gets from its iPhone exports – or from many of the brand-name electronics goods it ships to the U.S. and elsewhere. Thanks to the globe-spanning supply chains that run through China, trade deficits in the modern economy are not always what they seem.

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Who really makes the iPhone?

Let’s examine an iPhone 7 a little more closely to see how much value China is actually getting.

Start with the most valuable components that make up an iPhone: the touch screen display, memory chips, microprocessors and so on. They come from a mix of U.S., Japanese, Korean and Taiwanese companies, such as Intel, Sony, Samsung and Foxconn. Almost none of them are manufactured in China. Apple buys the components and has them shipped to China; then they leave China inside an iPhone.

So what about all of those famous factories in China with millions of workers making iPhones? The companies that own those factories, including Foxconn, are all based in Taiwan. Of the factory-cost estimate of $237.45 from IHS Markit at the time the iPhone 7 was released in late 2016, we calculate that all that’s earned in China is about $8.46, or 3.6 percent of the total. That includes a battery supplied by a Chinese company and the labor used for assembly.

The other $228.99 goes elsewhere. The U.S. and Japan each take a roughly $68 cut, Taiwan gets about $48, and a little under $17 goes to South Korea. And we estimate that about $283 of gross profit from the retail price – about $649 for a 32GB model when the phone debuted – goes straight to Apple’s coffers.

In short, China gets a lot of (low-paid) jobs, while the profits flow to other countries.

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The trade balance in perspective

A better way of thinking about the U.S.-China trade deficit associated with one iPhone would be to only count the value added in China, $8.50, rather than the $240 that shows up as a Chinese import to the U.S.

Scholars have found similar results for the broader U.S.-China trade balance, although the disparity is less extreme than in the iPhone example. Of the 2017 trade deficit of $375 billion, probably one-third actually involves inputs that came from elsewhere – including the U.S.

The use of China as a giant assembly floor has been good for the U.S. economy, if not for U.S. factory workers. By taking advantage of a vast, highly efficient global supply chain, Apple can bring new products to market at prices comparable to its competitors, most notably the Korean giant Samsung.

Consumers benefit from innovative products, and thousands of companies and individuals have built businesses around creating apps to sell in the App Store. Apple uses its profits to pay its armies of hardware and software engineers, marketers, executives, lawyers and Apple Store employees. And most of these jobs are in the U.S.

If the next round of tariffs makes the iPhone more expensive, demand will fall. Meanwhile Samsung, which makes over half its phones in Korea and Vietnam, with a lower share of U.S. parts, will not be affected as much by a tariff on goods from China and will be able to gain market share from Apple, shifting profits and high wage jobs from the U.S. to South Korea.

Put another way, research has shown globalization hurt some Americans while it made life better for many others. Putting globalization in reverse with tariffs will also create winners and losers – and there could be far more of the latter.

Why not make the iPhone in America?

When we discuss these topics with policymakers and the media, we’re often asked, “Why can’t Apple just make iPhones in the U.S.?”

The main problem is that the manufacturing side of the global electronics industry was moved to Asia in the 1980s and 1990s. Companies like Apple have to deal with this reality.

As the numbers we’ve cited make clear, there’s not much value to be gained for the U.S. economy or its workers from simply assembling iPhones here from parts made in Asia.

While it’s possible to do so, it would take at least a few years to set it up, cost more per unit than production in Asia, and require a lot of carrots and sticks from policymakers to get the many companies involved to do so – for example, like the potential $3 billion in subsidies Wisconsin gave to Foxconn to build an LCD factory there.

A flawed response to the challenge from China

There is, of course, plenty for the U.S. to complain about when it comes to China’s high-tech industry and policies, whether it’s the lack of intellectual property protection or non-tariff barriers that keep major tech companies such as Google and Facebook out of the huge Chinese market. There is room for much tougher and more sophisticated bargaining to address these issues.

But where trade is concerned, policies should reflect that manufacturing is now a global network. The World Trade Organization has already developed an alternate set of trade numbers that shows each country’s trade in value added terms, but the administration seems to have missed the memo.

Trump’s trade war is based on a simplistic understanding of the trade balance. Expanding tariffs to more and more goods will weigh on U.S. consumers, workers and businesses. And there’s no guarantee that the final outcome will be good when the dispute ends.

The ConversationThis is a war that should never have been started.

Jason Dedrick, Professor, Syracuse University; Greg Linden, Research Associate, University of California, Berkeley, and Kenneth L. Kraemer, Research Professor, University of California, Irvine

This article was originally published on The Conversation. Read the original article.