China’s Mercantilistic and Predatory Practices Are Destroying U.S. Jobs and Prosperity
We must respond or resign ourselves to becoming a third world country, from being a productive economy to becoming a service (servant) economy with no hope of ever earning enough to support ourselves.
The agreement securing China’s entrance into the WTO was woven with disastrous decisions. There were no protections in place to maintain or improve labor or environmental standards. American workers are at the very least guaranteed a living wage and our factories must comply with some semblance of environmental protection. American workers’ wages have stagnated across the manufacturing sector, as employers cannot afford to compete with cheap foreign labor. At the same time, American companies are forced to shirk environmental regulations at home to compete with unregulated practices abroad. Thousands of American factories have been closed and employment in entire regions, once known as the heartland of industry, has been ravaged.
Chinese membership in the WTO was supposed to benefit American exporters, but in practice the exact opposite has been true.
Since China became part of the WTO, America’s trade deficit with that nation has grown dramatically. In 2001, the U.S. trade deficit with China was $84.1 billion. By 2011, it climbed to $301.6 billion. The deficit with China has been increasing an average of $21.7 billion every year.
This massive deficit has hit American jobs and wages the hardest. The U.S. has seen a reduction in traded-goods industries, especially where manufacturing is concerned. In total, the U.S. has seen a loss of more than 2.7 million jobs between 2001 and 2011, largely as a result of the trade deficit with China.
Many American industries have faltered since 2001, but manufacturing has been hit the hardest. Apparel and accessories, textile mills, fabricated metal products, furniture and fixtures, plastics and rubber products, motor vehicles and parts, and miscellaneous manufactured goods have all seen an immense loss in jobs.
America is stuck with a grim and vulnerable economy. Millions of U.S. jobs have been displaced. We have mounting foreign debt and our export capacity is diminished. Unless something is done to solve the problems stemming from the trade agreement with China, our trade deficit will continue to rise, as will our jobless numbers!