The media oversimplifies the trade issue between the USA and China by pointing to American wages, but there are other factors at play that are at least as important. For example, China has manipulated its currency, the Yuan, for years setting it at an artificially low rate that gives its manufacturers a huge advantage when exporting to the USA.
This has been a big year for our dollar to weaken against global currencies, like the European Euro. The exception, which is mathematically impossible if currencies were allowed to float appropriately, is the Chinese Yuan. On January 1st 2009, the Yuan was at 6.83 against the dollar, the Euro was at .72. Now the Euro is roughly at .67, meaning its goods have become 4% more expensive against American-made products. For example, if BMW wants to make a car in Germany and ship it to the USA, in just this past year it would have to raise its prices by 4% just to stay even with relative currency changes due to the weakened state of America’s economy. The Chinese Yuan is now where? One would expect that with their massive trade surplus shipping to the USA their currency should strengthen significantly. However, it is still at exactly at 6.83 Yuan to one dollar! What are the odds!
This flagrant manipulation has their currency undervalued by at least 40%. So what? Some news sources were indicating recently with the tire tariff that the actual amount Chinese tire makers were undercutting the market was by 19%, sufficient to close many American tire plants force the layoff of thousands of workers – yet that difference was less than half amount the value currency manipulation. If China were fairly allowing its currency to float, its tires would have cost approximately 20% MORE than tires produced here in the USA.
No nation that allows flagrant currency manipulation should be allowed in the World Trade Organization or access to world markets. China is building up its own industry at the expense of the world, and jobs not just here in the USA, but around the globe. We simplistically talk about free trade, but ignore facts like there cannot be free trade where there is not free currency exchange. China is playing the game to win and we need to wake up.
Founder of MadeinUSAForever.com a source for products made in the USA
I often get asked, what are my favorite websites concerning made in USA issues? There are several that I really like.
American’s Working by David Riley at http://www.americansworking.com/ is an excellent resource for hundreds of American-Made products, plus I completely agree with his pro-America views. David also does an amazing free newsletter, which you can sign up for on his homepage.
I also really like MadebyYankees.net at http://madebyyankees.net/p1.htm which has a very extensive database of products made in America. Plus, if you cannot find what you are looking for, you can e-mail them and they will try to locate it for you for free.
Naturally, Roger Simmermaker’s website How to Buy America at http://www.howtobuyamerican.com/index.php is an inspiring resource (Please ignore my competitors advertising there. Ha! Ha!). Roger is author of the book How American’s Can Buy American is available there or on MadeinUSAForever.com. With his many TV appearances, while maintaining his job as a union machinist, has done more American industry recently than anyone I know. He is my hero.
With every American-made product we buy, we put someone back to work. These three websites are in the thick of the fight, and I am proud to stand among them.
Todd Lipscomb founder of MadeinUSAForever.com (http://madeinusaforever.com/) a source for products made in the USA.
According to data released today by the Commerce Department, and cited in the Wall Street Journal, the trade deficit surged over 16% in July. The deficit is a drag on our economy of over $31,000,000,000 a month, or $1,000,000,000 (a billion) every day of the week.
Each day we are that much poorer as a nation due to this trade deficit. That is the equivalent in annual pay of 1 million Americans jobs lost every month! And that does not even include reduced wages people are being forced to take! We are forced to borrow that money back from better governed Asian nations and mortgage our children’s future to those who know no mercy.
Unfortunately, the “Cash for Clunkers Program” program backfired, and by not having any sort of USA content requirement on the plan was a huge boon for foreign auto makers — $2.4 billion of the trade deficit surge was foreign auto import related. Will anyone in Washington actually think before they spend our tax dollars?
We continue down a doomed road towards economic collapse and all Washington can do is fiddle like Nero while Rome burned.
Its vital support and nurture America’s ability to produce. Without industry our society has no ability to employ its own people and protect our way of life.
There is still hope. We as individuals can really make a difference in what we buy and use each day. Everything made here employees real Americans like you and I.
Special Thanks to Robert Hall for pointing this data out. His thoughtful and important song “Dollar to the Giant” can be found on Amazon.com at: http://www.amazon.com/dp/B001LYVFX0/.
Founder of MadeinUSAForever.com (http://madeinusaforever.com/) your source for products made in the USA.
According to the Bureau of Labor Statistics, unemployment continued to spike in August, now shedding over 6.9 million jobs since the recession began. This is the highest rate 26 years, and shows no sign of an end in rising. We could easily see unemployment over 12% by the end of the year, and worse next year.
Plus, according to this government agency, another 2.3 million people are “marginally attached to the economy”, which is the government’s way of saying they have given up or have part-time jobs, but want full-time jobs. These folks should be included the official numbers, but the government ignores them to keep the rate from looking worse.
Also, the official teenage unemployment is at a record rate at 25.5%, a record for over 60 years! With industrial production continuing to head overseas, these young people have little of hope getting good jobs.
The math is not difficult. As long as we keep shipping good jobs abroad, we have little hope for the future. It is time to make a stand, and protect America’s future by keeping it made in USA.
Founder of MadeinUSAForever.com, your source for American-Made products.