Economist Peter Morici: Obama admin exports initiative weak in present form

[brentspeak]

http://www.nuwireinvestor.com/blogs/investorcentric/2010/02/chinas-trade-practices-barrier-to-job.html

China's Trade Practices: A Barrier To Job Growth
Posted by: NuWire Investor @ 5:56 AM

Peter Morici discusses one of the barriers to job growth, which is the enormous trade deficit with China due to huge tariffs, administrative barriers, and undervalued currency. Without taking action against China's trade practices, unemployment will remain high.

President Obama is seeking to double U.S. exports and create 2 million jobs over the next five years. The new Commerce Department program to accomplish this goal is simply inadequate.

The Commerce Department initiative merely consists of redoubling existing efforts and not addressing the fundamental issues -- the undervalued Chinese yuan and high tariffs and other regulatory barriers that block U.S. exports in much of Asia.

snip

Without strong U.S. action to offset China's currency market intervention, which exceeds $400 billion a year, China simply is not going to change its currency and trade policies, and U.S. unemployment will stay close to 10% or higher.

Taxing dollar-yuan conversion to offset China's currency subsidies would level the playing field, but the administration has offered no substantial proposals that promise to level the terms of competition for U.S. businesses in China or inspire a change in China's protectionist policies.

[RUMMYisFROSTED]

1. NuWire Investor is the bomb!

:woohoo:

[DJ13]

2. The free market types would scream "protectionism!"

China increases tariffs all the time to protect their domestic industries, for example last week they put a 40% tariff on US grown chicken to protect their domestic farmers.

The free market nuts said nothing.

But.......if our country tried to protect a domestic industry from China all hell breaks out.

[brentspeak]

3. kick

:kick: