Regardless of our politics, we all have a yen for more American jobs (I couldn’t resist the pun). That is really what the bi-partisan China Currency Bill could help accomplish. For those of you who have been reading my posts you know that they promote more American products and manufacturing, but we have lots of hurdles to cross and so far without much, if any, help from Washington.
The crux of the American job market over the past dozen years or more is we have exported the majority of our manufacturing to China. Along with that, the millions of manufacturing jobs and small businesses that support the larger plants in towns everywhere have also gone. On a positive note, we are beginning to see some American-owned specialty manufacturing being brought back into this country due to inflation, rising labor costs and quality-control issues in China. But that is only a trickle, and we need a stream. Washington has the valve to open up that stream – if they will turn it open.
In an Op-Ed from The Baltimore Sun (October 11,2011), Peter Morici hit the nail on the head (click here to read it yourself). The issue is that Beijing has kept the Chinese Yuan undervalued by about 40% so that the goods and services they provide are much cheaper than what can be provided here in the US. It is not that Americans have become lazy, forgotten how to make things, don’t want manufacturing jobs or can’t compete; that is rubbish. It’s rather that Americans are being denied their fair opportunity to compete. The Chinese government subsidizes many of their exports and blocks imports that would put competitive pressure on their own stuff. It’s a great game plan for them, but look what it is doing to us! Seems like fair is fair. Take the recent Solyndra debacle for instance…one chief reason that it failed (other than poor management and reckless capital) was the Chinese started making cheap (subsidized) solar panels.
The Chinese currency bill would go a long way to equalize markets, at least in China. While many companies will just seek the lowest common denominator and divert manufacturing to Vietnam, Indonesia, Honduras and other places, China still has by far the largest portion of exported U.S. jobs. So the Chinese currency bill could be a catalyst to restart American manufacturing.
Of course we the people can bring about a market shift on our own by catering to growing markets with US goods. It is a trend which is building momentum, and like the “green” movement, is grass roots. I believe the best solution will come from the free enterprise market system, and the increased demand for American products will fuel the need for more American jobs and is already doing so… all with no help from Washington! However, a shot in the arm that gets us closer to the cause for job loss would have to come from Washington.
Nashville Wraps will continue to strike a balance between quality goods made in America and competitive prices. We do this by supporting American (and Chinese) companies with volume. We too import goods, but only when we exhaust all possibilities for domestics, and so far that has proven to be good policy.