Sunday, October 3, 2010
Getting Tough on China
In an effort to equalize the trade balance between the United States and China the government has begun implementing tariffs on Chinese goods to force the Chinese government to strengthen its currency. For some time the U.S. has been accusing teh Chinese governemnt of intentially keeping its currency weak so it would have a trading advantage on the United States so it would be more appealing for U.S. consumers and businesses to import Chinese goods.
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I feel like the USA has ignored the national debt, and it has only become worse. Hopefully this step will lead to progress in terms of diminishing our trade deficit. In the end, its sad to say that, with our debt as high as it is, the USA won't be able to put a significant dent in it for quite some time. At this point the important thing for the US government is to stop adding to the problem.
ReplyDeleteNot only will this issue resolve national debt, hopefully it will address the large unemployed population. Hopefully large companies that outsource to China bring the jobs back to the US. What ever happened to the pride in the label, "Made in the USA"?
ReplyDeleteI'm not sure if this one incident alone will resolve national debt, however, we will definitely see a decrease in imports, resulting in an overall increase in net exports. I agree that it would be nice to have previously outsourced jobs come back to the US but the extent to which these tariffs will influence corporations to come back to the states is questionable.
ReplyDeleteThis could actually have an adverse impact considering the extent to which we rely on China to provide inexpensive goods and to finance our national debt. I wonder if China will retaliate by implementing tariffs on U.S. goods or by some other means.
ReplyDeleteAs strange as it sounds, having a weaker dollar gives more of an advantage to a country, in terms of trade imbalance. I do not know why we went so long not putting taxes on Chinese imports. This will definitely improve the trade imbalance.
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