America’s trade deficit with China has cost 3.4 million U.S. jobs since 2001 and is a major contributor to widening economic inequality, according to a study released Tuesday by the Economic Policy Institute.
Not surprisingly, the manufacturing sector has suffered the most because of America’s lopsided trade relationship with China, losing 2.5 million jobs between 2001 and 2017. But every state and every congressional district has seen job loss as a direct result of the growing China trade deficit, and the study shows that the wider economy continues to be dragged down by the growing deficit.
“Some regions are devastated by layoffs and factory closings, while others are surviving but not growing the way they could be if new factories were opening and existing plants were hiring more workers,” authors Robert E. Scott and Zane Mokhiber write. “This slowdown in manufacturing job generation also is contributing to stagnating wages… and widening income inequality.”
That’s putting it mildly. Workers directly impacted by job loss saw their incomes dwindle by $37 billion per year between 2001 and 2011 alone, the study finds. But the wages of all non-college graduates dropped by $180 billion per year, as import competition from China led to job loss and shifted company profits to those at the top of the economic ladder.
While the data might conjure up images of rundown factories in the industrial midwest, it’s a high-tech sector — the computer and electronic parts industry — that suffered the most job loss, shedding 1.2 million jobs from 2001 to 2017. And tech-friendly California saw the most total jobs lost because of the trade deficit: 562,500. Texas followed close behind, losing 314,000 jobs, followed by New York (183,500), Illinois (148,200) and Pennsylvania (136,100).More ...