Scott Paul

Scott Paul

Posted: February 29, 2008 02:54 PM

Who will Stand up for Ohio by Standing up to China?

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I've finished watching the twentieth, and possibly final, Democratic candidate debate. For someone like me who follows economic and jobs issues closely, the debate was both fascinating and frustrating.

First, the fascinating. Both Senator Obama and Senator Clinton said they would renegotiate the job-killing North American Free Trade Agreement (NAFTA) or exit it if our trading partners did not accept changes. That's a big development, and a welcome one, for Ohio's workers.

But one important economic issue was overlooked by the moderators and candidates alike: China. The word "China" wasn't even mentioned until three minutes before the end of the debate. No issue will have a greater impact on the future prospects of America's workers over the next couple of decades. Our grossly imbalanced trade relationship with China has cost America more than 1.8 million jobs from 2001-2006; 66,000 in Ohio alone.

Worse yet, these job losses are aided by Washington's complicity. Congress and the administration have the power to stop China's cheating and unfair trade practices, but so far, they have sat on their hands. What would a President Obama or a President Clinton do to ensure that American workers and businesses have the same opportunity to compete? Sadly, we still don't know.

No issue matters more to Ohio's economic future. China subsidizes its industries at the expense of our businesses. This is illegal under our trade laws, but no one in Washington has acted to stop it. China dumps its products into our market at below-market prices to undercut our producers. Again, it's an illegal practice, but this administration hasn't done enough to stop it. China manipulates its currency to gain a trade advantage, making its products roughly forty percent cheaper to buy in the U.S., and American products about forty percent more expensive to sell in China. This is a violation of China's trade commitments, but other than endless dialogue with China, this administration has refused to hold China accountable.

Sure, some American consumers enjoy cheap goods from China, but they come with a higher price that is not reflected on the price tag. Millions of lost jobs, dozens of recalls of unsafe and toxic consumer products and toys, a massive U.S. debt that is held by China, and diminished opportunities for good-paying jobs for our next generation.

Ohio voters deserve an answer. Which candidate will hold China accountable for its unfair trade practices and give American workers an opportunity to compete? A week before the primary, we cannot yet say.

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- Cathexis I'm a Fan of Cathexis 7 fans permalink

US workers blaming China for unfair labor practices is like the john blaming the hooker for looking to sexual. If Corporations had any ethics, partiotism, or humanity, it wouldn't matter what China did or didn't do -- they wouldn't be utilized.

But since it is OK (and even lauded) to chase the lowest cost buck, even if it means exploiting people and nations, the Corporations are not held accountable as they begin massive shifts of jobs out of teh country.

What would happen if Corporations insisted that *anyone* with whom they did Business *had* to adhere to some minimal set of standards? What if Government mandated that Businesses that dealt with the US had to do so?

I'd hazard that China and other nations would improve drastically. True, Corporations couldn't foist as many economic externalities off on poor people, but ... is that really such a bad thing?

    Favorite    Flag as abusive Posted 11:26 AM on 03/04/2008

I work in the UK in heavy industry, by trade a machinist, but now working as a metallurgist! The devate you are having in Ohio and around the US mirrors the one here in the UK.

I would argue that as the manufactuing base of the country declines so does it's political power as conversely the service sector continues to increase and develop more influence. The cold hard fact is that, over here at least, the call to protect British manufacturing jobs has been unheeded by the majority of the UK population who have no real connection to anyone who makes something.

This in turn means, in my opinion at least, that the majority of consumers really don't think or care where something is made so long as it suits their needs at the right price! Even if one should exist as a purely British made device, not many consumers would pay a premium for such as a CD player, when just down the shopping aisle is one that is cheaper but foreign made. Of course people may talk about buying 'home goods' but what really matters is price.

That means of course either quotas or tarrifs to level the playing field to allow Western based manufacturers to compete and that means ultimately higher prices. This is seen by many (of my friends at least), who work in the white collar service sector as special treatment for industry and they have said that they won't pay higher prices simply to suit 'old inductries' and see no reason to use taxpayers cash to 'prop up failing industries'.

Most of the consumers in the UK, given recent surveys and public comment, remain solidly unconvinced by the 'strategic need for manufacturing' theory and tend to believe that in a global world it is in any case impossible to prevent jobs moving to where companies wish to put them especially given the economic power of the MNC's.

Do I think tarriffs and quotas are the way forward: yes.
Would the general public support this idea and be willing to pay higher prices: no.

    Favorite    Flag as abusive Posted 11:01 AM on 03/04/2008
- antaeus I'm a Fan of antaeus 81 fans permalink
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Maybe if there weren't plenty of people in Ohio who are themselves eager to buy Oxo corn-cob holders and other such "necessities" of life, not to mention lead-based toys, then China wouldn't be reaping the rewards it has. The next time the good folks of Ohio feel a bitch coming on about the economy, maybe they should start by looking in their own kitchens and garages. Most of the plastic novelties that crowd the shelves in Bed Bath & Beyond aren't worth the space that they will eventually take up in the landfills. It isn't policy that's hurting Americans--it's a sick addiction to consumerism. And as for the toys, I've seen the Amish-produced toys, wrapped in brown paper, that are made right in the USA, in our own communities. But if parents would rather litter their living room floors with a sea of plastic junk from China, then don't blame it on policy makers.

    Favorite    Flag as abusive Posted 02:52 PM on 03/02/2008
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What!? You mean we citizen/consumers should (or need) to do something more than vote for one person every four years? What are you, some kind of pinko terrorist?

Look, i need those everyday low prices at WalMart. I really don't care if my neighbor loses his job because of it; that's not my problem...at least not until his house goes into foreclosure and the vacant house next door to me starts dragging property values down. But that's something for the politicians to fix...i need to watch my TV shows on the big, shiny new plasma i bought with my credit card.

You probably think i don't need an F-350 to make my 45 mile, one way, commute to work every day either. Well, i've got news for you...at least four times a year i put some stuff in the bed of that truck. Don't tell me it isn't patriotic either: i've got a yellow ribbon magnet AND an American flag sticker. I support our troops who have to go overseas to get us more oil...why can't you?

And who am i supposed to believe, you or the President. He told us all to go out and shop after 9/11; if we stop shopping then the terrorist will win. But you're probably one of those "blame America first" liberals, aren't you? Next you'll start telling me about insulation and turning down the thermostat...or buying one of those CFL lightbulbs.

(In case that wasn't over the top enough to be obvious, it was sarcasm; excellent post!)

    Favorite    Flag as abusive Posted 11:08 PM on 03/02/2008
- dolphy I'm a Fan of dolphy 44 fans permalink

Sorry to post this again. A co-worker told me ten years ago that we will kick China's ass. Look where we are now. China owns our collective asses. LOL.

    Favorite    Flag as abusive Posted 07:07 PM on 03/01/2008

Ditto, Good article.
Which candidate would be more beholding to the American 'people'?
China aside for a moment, when we caste our votes they should be casted with future interests in mind. We should be voting for a leader, not a certain skin tone... That said, Sen. Obama is no 'legal fiction' and not in conflict with corporate interests.
I am certain Sen. Obama, himself, is surprised and honored with the support shown by American voters and individual sponsors. His campaign strategy, itself, offers new insight into and gives him real pause to consider Public Campaign Funding options and/or the possibilities of public support brought about by the internet (an instance of change).
Tariffs may help workers; but, until voters recognize 'multinationals' have conflicting interests, a vote for candidates backed by corporate-lobbyists (given the games they compel politicians to play) only advances 'fictional' interests, not the American worker.
Oh! China and its impact on the American economy and worker is no 'fiction', either. The problem is that as Americans we keep fighting ourselves because we're color struck.

    Favorite    Flag as abusive Posted 01:53 PM on 03/01/2008

The government won't stand up to the guys that are financing our economy. If the Chinese stopping giving us loans our economy would probably collapse.

    Favorite    Flag as abusive Posted 12:23 PM on 03/01/2008
- Myrrhis I'm a Fan of Myrrhis 3 fans permalink

Bravo, Paul!

Your question is the type of journalism I like to see. I don't need endless rehashing of who's done what to whom, I'd rather see a public push for answers to unconsidered questions.

It doesn't matter who "my" candidate is. I am willing to listen to each of their responses. Do we want a positive campaign? Great. Do we want more content and less style? Ok, let's ask for it. Ohio is the perfect setting to ask this question, and it certainly speaks to an issue that the future president will face. Let's get some "I think we can engage China by . . . " statements going here. Positive and substantive. Come on, people.

    Favorite    Flag as abusive Posted 11:31 AM on 03/01/2008
- hank48188 I'm a Fan of hank48188 8 fans permalink

We need to quit supporting CHINA with our desire for the cheapest possible consumer goods. The Gov't hasn't been run for the common good in quite some time, it's all about the money, and we have been sold out by our elected officials. I think NAFTA was a good idea, take some of that CHINA work and bring it back to North America, if we can't make it here make it in Mexico, it would eliminate our illegal problem overnight.

    Favorite    Flag as abusive Posted 10:06 AM on 03/01/2008
- Desiderata I'm a Fan of Desiderata 40 fans permalink

The reason the North could defeat the South in the American Civil War was because the North had a virtual monopoly of manufacturing.

The reason the United States of America could take on and defeat Germany and Japan in WWII was that our nation had a vast manufacturing base that could be quickly tooled to supply what was needed to win a global war.

The greatest threat to our national security is not a bunch of self-righteous terrorists, but the loss of this nation's ability to make things. With our nuts and bolts industries gone, the nation is in the same position as our southern states were long ago.

It is no wonder our leaders just smile when China poisons our children and pets.

Think this not so. See what the current or next President does when China finally seizes Taiwan.

    Favorite    Flag as abusive Posted 01:25 AM on 03/01/2008

Well said. Once we became a "services" nation vs. a "goods" nation, we were done...

The ills destroying manufacturing:

> Labor - wages in factories are too high due to unions
> Health care - killing payroll of companies
> Pensions/retirement - killing payroll of companies
> Cost of Goods - inputs to products are too expensive because we have to import everything
> Output - lack of pride in work turns out crappy end product consumers don't want
> Taxes - higher taxes make companies cut corners, mostly the wrong corners
> CEO compensation - it is ridiculously inflated and a drain on companies
> Fuel costs - contributes to rising cost of goods sold

I would love to be able to buy an American made product, but it is next to impossible to find one these days!!

    Favorite    Flag as abusive Posted 11:18 AM on 03/01/2008
- Novista I'm a Fan of Novista 8 fans permalink

Curse you, yellow peril! How dare you subsidize your industries when America d ... oh, wait ...

Golly, a long time ago I used to live in Ohio and never knew they made 'cheap crap' but lost all those good jobs to China. Who knew?

Maybe there should be less emphasis on bashing foreigners and more in asking hard questions here at home. Like, Mistuh Paulson, what do you really mean about a strong dollar (or what are you smoking?) Or, how long can an individual -- or a country -- continue to spend money that doesn't exist?

    Favorite    Flag as abusive Posted 12:57 AM on 03/01/2008
- mmckinl I'm a Fan of mmckinl 22 fans permalink

It is time for Tariffs ... No serious economist will tell you that these trade deficits are either sustainable or reversible.

We have a choice:

- Tariffs that will protect American jobs, pay down the debt and protect the dollar.

- Or ... Doing nothing that will lose American jobs, increase the trade deficit , trash the dollar and eventually the entire economy.

The authors plan for more entitlements is unsustainable. America needs to put people to work, at real jobs , not retrain them for jobs that will be outsourced ... The only antidote to currency manipulation, product dumping and hidden trade barriers are tariffs , plain and simple.

    Favorite    Flag as abusive Posted 10:43 PM on 02/29/2008

Let's rephrase that question; Which candidate will commit to find a win/win solution? Which candidate will commit to telling the American people the truth, asking them to sacrifice, and formulating a viable plan to compete with China?

This is about substantive change in Washington. Get real. We subsidize China today. It's not about "cheap". It's about doing something about politics as usual. Widgets can be made anywhere.

    Favorite    Flag as abusive Posted 08:27 PM on 02/29/2008
- Plowboy I'm a Fan of Plowboy 25 fans permalink

We need to ask ourselves now how we can get tough with China. After all, they have most of our dollars!

    Favorite    Flag as abusive Posted 07:22 PM on 02/29/2008

Scott,

Thanks for redirecting focus and pointing to what is one of the most significant challenges facing America and all North Americans, since it directly affects the personal pocket books, today and tomorrow....

Level 1: - http://pacificgatepost.blogspot.com/2008/02/americas-china-quandary.html
and
Level 2: - http://pacificgatepost.blogspot.com/2008/02/america-for-sale.html

Let's set some Rules, then get on with rebuilding the damage.

    Favorite    Flag as abusive Posted 06:51 PM on 02/29/2008
- waiguoren I'm a Fan of waiguoren 8 fans permalink
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As you may or may not know, China is an ancient, vast, and vastly complicated civilization. It is only in the past several decades that she has willingly ( that is, not forced to, by Western gunships, as in the past ) opened up to the rest of the world. This is causing problems unheard of in former times, both within and outside of China.

As with every great power, the leaders of China will do whatever they believe will make them stronger.
The thrust of your post is absurd. It is part of the seemingly endless belief that the U.S.A. can, and indeed has every right to, control the world. That day has long gone. The ones profitting by any so-called unequal trade policies reside in both counries.

Ohio must look to Washington and other Western centers of power for justice. And China will take care of itself.

    Favorite    Flag as abusive Posted 05:38 PM on 02/29/2008
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