[CTC] Chinese Currency Manipulation Is Just One Piece

[Citizens Trade Campaign]

<http://salsa.democracyinaction.org/dia/track.jsp?v=2&c=R2eXxD8vRBZno4vj9q2o
SZQ2mqxqLg%2Bb> EPI News


March 27, 2010 

 


All 50 states have lost jobs to China

As concern over the U.S.-China trade imbalance grows, a new paper by EPI's
Senior International Economist
<http://salsa.democracyinaction.org/dia/track.jsp?v=2&c=Z7uNZRHCiEcZFDmZFddR
4ZQ2mqxqLg%2Bb> Robert Scott finds that 2.4 million American jobs have been
lost to China between 2001 and 2008, and that every state along with the
District of Columbia and Puerto Rico has felt the impact.

Scott's paper,
<http://salsa.democracyinaction.org/dia/track.jsp?v=2&c=Y2Vf7U%2Fr6JQglOCexM
Sjy9%2BDpCVnqOsp> Unfair China Trade Costs Local Jobs, provides the first
detailed analysis of the jobs that have been lost since China joined the
World Trade Organization in 2001. It finds that, in addition to impacting
every U.S. state, the job loss has touched every Congressional district in
the country.

New Hampshire, California, Texas all suffer big losses
Scott's paper features a color-coded U.S. map illustrating where job loss
has been the most severe, as well as several detailed charts that measure
job loss by industry and by state. New Hampshire, which lost 16,300 jobs
during the seven-year period covered by the study, suffered the largest job
loss as a share of total employment. In terms of total jobs displaced,
California was first, with 370,000 jobs lost, followed by Texas, New York,
Illinois, and Florida, which all lost more than 100,000 jobs.

In addition to the loss of jobs, the paper finds that U.S. workers who have
kept their jobs have suffered depressed wages as a result of competition
with lower-wage workers overseas. "The impact," the paper says, "has
affected essentially all production workers with less than a four-year
college degree - roughly 70% of the private-sector workforce, or about 100
million workers."

The paper received widespread media coverage throughout the United States,
from the
<http://salsa.democracyinaction.org/dia/track.jsp?v=2&c=VyNJvDaR7bIm3BNQnQA0
QpQ2mqxqLg%2Bb> Sacramento Bee, to the
<http://salsa.democracyinaction.org/dia/track.jsp?v=2&c=BATSWzlIH6pS43xAnP8H
vJQ2mqxqLg%2Bb> Boston Herald, and
<http://salsa.democracyinaction.org/dia/track.jsp?v=2&c=Mh7S%2B5qgZmIphJq5w7
mg2JQ2mqxqLg%2Bb> The Toledo Blade. A
<http://salsa.democracyinaction.org/dia/track.jsp?v=2&c=5KGes5r90Y2eibzWcSbL
q5Q2mqxqLg%2Bb> Wall Street Journal story on the paper quoted Senator
Charles Schumer (D., N.Y.) saying, "We've known for years that U.S.
manufacturing's paying a heavy price for China's activities, but these
figures exceeded even our worst expectations."

Scott's paper comes at a time of growing concern over Chinese currency
manipulation, which has kept the cost of Chinese exports artificially low,
making it increasingly difficult for U.S. manufacturers to compete. Unlike
most other major currencies, the Chinese yuan does not fluctuate freely
against the dollar. While the value of its currency should have increased as
China exported more goods, it has instead stayed low, and China has
aggressively acquired dollars to further depress the yuan's value.

Earlier this month, EPI hosted a panel on Currency
<http://salsa.democracyinaction.org/dia/track.jsp?v=2&c=DqI3hGsElGdzKshIxlnp
QZQ2mqxqLg%2Bb>  Manipulation, where speakers including Nobel Prize-winning
economist Paul Krugman, stressed that a change of policy was needed to
address an extremely depressed Chinese yuan, which was fueling massive trade
deficits in the United States and Europe and threatening hopes of an
economic recovery.

  _____  

The Mission of EPI
To inform and empower people to seek solutions that will ensure broadly
shared prosperity and opportunity. 

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