China trade imbalance blamed for 2.4 million jobs lost

March 23, 2010 by · Leave a Comment
Filed under: Global News 

I have to agree that foreign free trade is in part to blame for this loss of jobs from 2001-2008.  It is not that free trade is bad but we incentivize the movement of jobs off-shore and we let the cheap finished goods back into the country unencumbered.   This is not totally bad, but if we are not providing retraining and more after-highschool training like vocational and college.  If we do not do this to create opportunity, then these under-skilled workers are going to have jobs available to them that will lower their standard of living and create less opportunity for their children.

This is the key point that we as a society do not seem to grasp.  We keep vilifying foreigners like China because its easy and doesn’t place blame on the home front but that is not the real culprit.   These countries are just taking advantage of the system we have opened up to them.  As long as we keep producing less and consuming goods without any thought of the actual cost, this cycle will continue until it gets so unbearable that we revolt.

Reuters – Unfair Chinese trade and currency practices caused the loss of as many as 2.4 million U.S. jobs between 2001 and 2008, according to a study released on Tuesday.

The report by the left-leaning Economic Policy Institute said China’s “currency manipulation” was a major cause of the United States’ trade deficit with China, though it said other Chinese practices contributed to the deficit.

The report comes ahead of an April 15 semi-annual report by the Treasury Department in which it must decide again whether to label China a currency manipulator. U.S. lawmakers in recent weeks have been pressuring the Obama administration to label China as such, something that U.S. President Barack Obama, like his predecessor, George W. Bush, has so far resisted.

Source:  Reuters

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!