Tuesday, July 17, 2012

What Is China up To Now ?

Think About This

The next time you pick up that “Made in China” product when you know there is an American made product at a slightly higher price, Think about This!

On May 10, 2012, USA Today reported that the trade deficit with China is on pace to exceed $295,500,000,000, last year’s amount.  And they use questionable currency manipulation to make Chinese goods cheap in the United States and American products very expensive in China.

On October 4, 2010, The American Economic Report in that year, our trade deficit with China will displace between 512,000 and 566,000 American workers.  Since 2001, when China joined the World Trade Organization, 5, 500,000 manufacturing jobs and 26,000 manufacturing facilities have been lost due to such a large trade deficit.

In 2011, according to the federal government, the labor force in the United States was 153,600,000 with 20% or 30,720,000 members typically engaged in manufacturing.  Just using very simple math one can see that we have, as of 2010, lost 18% of our manufacturing jobs due to the trade deficit.  The 2011 unemployment rate was 9% so if we just reduce our imports from China by 50%, we should reach full employment in the United States.

Just a note, our total imports in 2011 exceeded $1,700,000,000,000.  Why?

That unimaginable number is due to two things; first, the American people do not want to pay a little more for American made goods.  Second, American employers do not want to provide a wage and benefit package that is commensurate with the skill and educational level of the American worker.

Big corporations know that as the unemployment rate increases, so does the demand for ever and ever cheaper products.  So they import those products from countries, like China, that pay very little, have no benefit package to worry about, have no environmental protection or worker protection regulations.  Everything goes their way. The more we demand cheap products, the more domestic production they move overseas.  While they are rolling in the dough, the American wage and lifestyle, for so long the envy of the world, continues to decline.

Just one more point for today, but you will be hearing a lot more from me about China’s colonization of America. While the ultra-rich continue to bash the middle class of America into submission, they are moving their corporate headquarters “off shore” to avoid paying taxes in the country that has given them such great wealth.  To add insult to injury, many of the “ruling class” are renouncing their American citizenship to avoid paying income tax.  As Leona Helmsley once said, “We don’t pay taxes. Only the little people pay taxes.”  People at her level actually believe that.

Think about those things the next time you put a “made in China” product into your cart.   More to come!


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