USW International Secretary-Treasurer Stan Johnson and progressive talk show host Leslie Marshall this week discussed China’s recent economic turmoil and the ways the Chinese economy affects American workers.
China’s decision to radically devalue its currency cost the American economy some $2.1 trillion over the course of just six days this month. Yet, Johnson said, the problem with China’s influence goes much deeper.
Illegal trade practices and the increasing trade deficits have cost the U.S. 5 million manufacturing jobs over the past 15 years.
“Almost everybody knows someone who lost their job because of unfair trade or currency manipulation,” Johnson said.
Keeping its currency artificially low effectively creates tariffs on goods other countries try to export into China. Illegal subsidies, sometimes reaching as much as 200 percent, allow Chinese producers to sell their products on the world market at prices far lower than what they cost to manufacture.
Together, this creates a massive trade imbalance, ultimately stifling the American economy and costing millions of good-paying jobs.
“You can’t compete with a 200 percent subsidized product anywhere in the world,” said Johnson.
America’s leaders should be taking this threat seriously, Johnson said, and it’s the voters’ job to hold them accountable.
“Everyone today should be pressing every politician—and I don’t really care what the political affiliation is—about what they plan to do about rebuilding our economy,” said Johnson. “What do they plan to do about our exploding trade deficits? What do they plan to do about bringing jobs back to the U.S.?
“We have the power to force the dialog; we just have to start exercising that power and forcing it.”
American consumers also have a tremendous amount of power when it comes to supply and demand, Johnson said.
“We are the ones who can fix this. If everyone went to the big box retailer and said, ‘I will not come back here unless I can buy U.S.-made products,’” said Johnson. “If millions of people would do that tomorrow, guess what, that big box retailer would change in a minute.”
For the full audio, click here:
Background Materials:
Manufacturing Job Loss - Trade, Not Productivity, Is the Culprit
Manufacturing Jobs, Trade, and Productivity
U.S. Wins Trade Enforcement Challenge to China’s Duties on Steel
Full Blown Currency War is Coming
USW Pres. Gerard on China’s Currency Devaluation Action
New Body Blows for Three Major China Trade and Economy Myths