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The biggest reason so many jobs have been lost to China is because China keeps their currency pegged artificially low to the dollar. This keeps their citizens
by noelchurchill 16y ago
The biggest reason so many jobs have been lost to China is because China keeps their currency pegged artificially low to the dollar. This keeps their citizens poor but makes it very attractive for foreign companies to move their manufacturing operations to China.
To compensate the US could tariff everything imported from China to compensate for the artificially low exchange rate. The advantage to manufacture in China would be diminished. All of our material crap we buy would get more expensive too. Eventually China will let their currency float making them richer and us poorer, in terms of buying power, and stuff will be made in the US again. So the situation will correct itself. In the mean time its very hard for the people finding themselves without jobs.