Will the New Apple iPhone Cause Poverty?
Author: Gavin Chait

There is a naïve belief that, as the rich get richer, they consume more of the world''s resources and - in so doing - leave an ever dwindling amount of stuff over for the poor. In which case, purchasing the new Apple iPhone must lead to poverty.

As those from Naomi Klein, to UK-based Enough, to members of the far left, delight in continually saying, "The USA alone, with only 6% of the world''s population, consumes 30% of its resources."

I did mention that they were naïve.

At worst the iPhone will have no material impact on the lives of refugees from the conflict in Darfur or those suffering under the dictatorship in Zimbabwe. They are not involved in its production and none of the materials required for its manufacture are sourced from hopelessly impoverished nations.

At best the iPhone will result in a globally improving standard of living. Consider the phone in isolation. To come into existence required the work of designers, materials manufacturers, software coders, factories and assembly lines. The iPhone may become as iconic as the iPod; in which case - on its own - it will result in the creation of thousands of new jobs simply to produce it.

Consider now the iPhone''s impact on other phone manufacturers. If, as is to be expected from Apple, the phone is a technological leap ahead of its competitors, then they too will have to invest in their own products just to keep up. More designers, materials manufacturers, software coders, factories and assembly lines will be required. This will create even more new jobs.

More importantly, though, is the change to the overall standard of living. The base level of technology will rise. Our base expectations from the products we buy increases. In other words, even though - initially - the iPod will only be affordable by the wealthiest societies in the world, the ultimate effect will be that the new technology will spread everywhere.

Mobile phones were first the exclusive purvey of the very rich. As they became commoditised they spread to all reaches of society. Now, even a war zone like  

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