Is Trade with China Harmful to USA???

Question

specialx…
Trade with China harmful?>?
Is there any reason why trading and getting cheap labor/goods from china could possibly hurt our US economy??

it is more beneficial that harmful correct?
i got into an arguement with my teacher who said it is harmful to our economy because we lose jobs or something like that...

what can i say to her?

her main arguement was the loss of jobs...how can i counter this?

Answer 1

***YES***
They have different laws than the USA does.
The USA is careful about toxic and cancer causing substances... In China they are not under our manufacturer regulations.
For example: Have you ever walked in to a "Dollar Store" and smelled the initial throat closing poisonous fumes that come off of their items?= all made in China!
I bought a head set at Walmart and there was a plastic warning tab it stated:
WARNING: This product is know by the State of California to be made with cancer causing substances!
"Terrific" I thought, "just one more way China is hurting our people.... Other than stealing from our Gross National Product"
Measures of national income and output are used in economics to estimate the value of goods and services produced in an economy. Some of the more common measures are Gross National Product (GNP), Gross Domestic Product (GDP), Gross National Income (GNI), Net National Product (NNP), and Net National Income (NNI). In relation to greening the national accounts the United States Congressional Budget Office concludes "a gradual process of modifying measures of national economic performance is consistent with the history and development of the national accounts."[1]
http://en.wikipedia.org/wiki/GNP

Answer 2

Currently, China is currently just practicing free trade.

Many jobs are lost, but even if trade with PRC China ceases, there are many many other countries, India, Phillipines, Mexico, S American countries, etc that can easily provide low priced goods.

Also, over the last 10 years, goods from China has saved the American consumer over 700 billion dollars. And much more for companies.

And regarding currency reserves, Japan actually has a larger reserve of US currency than PRC China.

Answer 3

the thing with china is we are trading a whole lot of money for some cheap goods that will be thrown away in a few years. sure we get to save a couple of bucks on DVD players and the shirts on our backs because products made in china are cheaper than they would be here, its expensive to pay american workers. so the equation is imbalanced and pretty soon china will have an economic advantage over us, if they don't already. soon we will be competing for the last bits of remaining oil in the ground, if we aren't already.

i agree with your teacher, but you can counter her arguement by saying that since manufacturing jobs are all gone from our country, that opens the door for workers to get into other fields of work that could be more rewarding.

but what happened to the auto industry is a shame. just look at detroit.

Answer 4

The result of free trade is an emerging middle class in China. That is very good for America. The more power and wealth the people of China control the less the Socialist Government can control them. If we keep it up China will end up the way the Soviet Union did.


.

Answer 5

I believe the way the current world market is that trading with China is not good for America.

My reasoning is that China's currency peg is set way below what it should naturally be, which in turn hurts the rest of the world when trading with them.

It is highly reflected in the U.S./China trade deficit.

The currency peg exaggerates the natural imbalances created by low wages. An artificially strong dollar gives foreign businesses and consumers more purchasing power than they should "naturally" have (if the exchange rate were determined by the market) and makes Chinese goods even cheaper. An artificially weak Yuan makes foreign goods more expensive for Chinese consumers.

Answer 6

Trade with China is not harmful. What is harmful is the lack of balance in the trade. We bring/allow in too many of their cheap goods without being allowed to export the same.

Answer 7

I'm afraid I will have to agree with your teacher. The cheap labor/goods comes at a high price for the U.S. consumer.I know of one huge company who will be sending more of their jobs to China. These jobs will put a lot of Americans out of work.This company will have to send some of their own people to China to teach the Chinese how to do the jobs which will eventually take jobs away from their countrymen.American workers don't want to go to China because of the unstable form of government.I would like to know your reasons for thinking that it will be beneficial to trade with them.

Answer 8

yes it can harm our economy because of jobs that we lose but it also helps us because we get some products cheaper because of this, ending our trade with China would hurt China more than us, bc of the economy there depend so much on the U.S. without our trade they would starve

Answer 9

The global economy is becoming increasingly complex. We rely on China, and they rely on us.

The US economy will adapt to the changing industries. New jobs in new industries will open, even as old industries are being moved to other countries. That is the way of things.

The US will remain the most technologically advanced nation in the world, and will expand its position here.

Answer 10

Labor Unions forcing their way into your company is harmful to the USA.

We would not go to China if Unions did not demand overpriced labor and can strike your company and put it out of business.

Answer 11

The question should be fair trade vs free trade. I'm still debating this issues with myself. But I'm reading more on both sides so I'll have to get back with you.