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To: jpsb

What you said.

The reason our unemployment rate is so high, is because we keep sending jobs to China.

The reverse is true: If we initiate a trade war, we will begin making things in America again. Jobs will increase.

Commence the trade war.


8 posted on 09/20/2011 7:04:12 AM PDT by Cringing Negativism Network ("Cut the Crap and Balance!" -- Governor Sarah Palin , Friday August 12 2011, Iowa State Fair)
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To: Cringing Negativism Network
The reverse is true: If we initiate a trade war, we will begin making things in America again. Jobs will increase.

Well, that is true. But I do believe people get alot more from free trade than not. Case in point, the shoe industry (I realize I used this example before, but it is worth repeating). Back in the 1950's, the US shoe industry employed 250,000 people in the US. Today, shoe manufacturers employ 12,000 people. Yet, in the 1950's, the average American, had on average a 2-3 pairs of shoes. Maybe a little more. Today, of course, it is common for people to have a closet full of shoes.

Free trade frees up the workforce to do other things, like high tech., etc. The problem is, and this is a real problem, is that many Americans are unable or unwilling to move up the value chain. You won't read about it in business articles or hear pundits talk about it.

Free trade, in an ideal world, works. In essence, America is trading higher value products, produced with more engineering, technology, etc. in exchange for products that require a tremendous amount of labor, like textiles.

But not everyone is able to move into these higher industries. Every high unemployment times, the news is the same, that employers are looking for people, but looking for skilled people. And that there needs to be more training. While I agree with that assessment in part (more training, etc.), the reality is, not everyone is willing to do those jobs.

Ironic as it may sound, just as people aren't willing to do the dirtiest or most dangerous jobs, there are also many people unwilling to do the most arduous and difficult jobs.

Put out a job announcement that requies someone to operate a piece of machinery for $25/hr, and you will get a long line of job applicants.

Put out a job announcement for a project manager for 100k/yr, salaried, take on responsibilies, have their work schedule be open ended, i.e., work overtime as needed to get the job done, and you will find very few people willing apply for a job like that.

That's why so many people in America, are willing to expand trade with countries like China. They are the ones organizing people. Take up responsibility, etc. They create technology and are looking for cheap labor to make their every day items. And to seek higher returns.

So, to some degree, I agree with you. Too much trade makes it difficult for a large swath of Americans who cannot be the Jeff Immelts or the Steve Jobs.

27 posted on 09/20/2011 9:11:04 AM PDT by ponder life
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