3/15/2005

Is China Really Taking Away Jobs in the U.S.?

One of the biggest topics among politicians is the fact that the United States is losing jobs overseas, especially in China. According to the article "US textile makers raise alarm over Chinese import surge" China is exporting more than ever before. If the history of China follows, China will grow until it monopolizes the nation in textile exports. Official data released Friday showed China accounted for 35 percent of US textile imports in January and 22 percent of apparel imports. They said that some products such as cotton trousers saw import increases of as much as 1,000 percent in January compared with the same period a year ago. If the government doesn't intervene to save Americas textile industry, many jobs will be lost. Of course it is good for businesses that import because costs will be lower and they will ultimately be able to offer lower prices to the consumer. Is this worth losing jobs? Free trade supporters believe that it is necessary for global competition, and in the long run will be more beneficial. Should the government try to regulate imports from China?

1 comment:

Dr. Tufte said...

Let me phrase that question in a different way.

Suppose the government did do something to preserve American textile jobs. Those jobs would need to be filled with poorly educated people who don't mind repetitive work for low pay with little hope for advancement. What sort of educational policy would you recommend to make that work? Would anyone vote for that? Of course not - it's crazy on the face of it, but you need to carry through arguments in economics to make sure that bizarre ideas like this are not the end.

To be more specific about textiles, we employ less people in textiles than ever before. Further, textile production has been a declining business in the U.S. for decades. Yet, America has grown richer and better off over that time. It's actually more plausible to suggest that our government should actively discourage textile production than it is to preserve it.