Here is my slanted view on the situation. Some agree. Most disagree for whatever reason.....
The solution is import taxes.
Heavily tax imports to the point where we can compete price-wise with the Made in China items.
Something HAS to level the playing field or we will all end up flipping burgers.
We also need to stop subsidizing private business that continues to move American jobs away from our country. Yank their subsidies and start taxing the imports and you will start to see a resurgence of American manufacturing.
If you want to show pictures of pollution, one needs not look any further than our own back yard.
We have enough problems of our own that we need to clean up instead of bashing China for their horrible problems.
If our government was really on our side they could increase the import taxes (which could reduce taxes that corporate America would end up paying).
Yes, this would mean that consumers would end up paying more taxes, but it would open their eyes and could potentially force them to look for domestic alternatives.
The masses will never go for such a plan as it would cost them more money (but they would be able to get a job).
I really don't blame China. I blame our lawmakers that allow the horrible imbalance of trade.
Have you ever considered the taxes or import duties required to bring foreign equipment into many foreign countries? Some places it's over 50%. Other places its closer to 100%. I think we as a country need to look at that pretty closely.
Off my soapbox.
Recently US increased tariff on some Chinese tire and steel product. China reciprocated with increased tariff on US chicken. Another example of protectionism never work. It damages both sides. It has been tried countless times throughout the history of the US. Yet, the people in charge never learn. I think it is use as a political tool. It is a feel good policy to pacified the constituents. Perhaps the politicians DO know it won't work. It serve to show that they are doing "something". Often, that is enough to make the stupid voter/supporter convinced. The solution lies somewhere else. There were tons of headline talks a couple of weeks ago. Here is one article I found amongst hundreds of hits on Google.
Sunday, February 07, 2010
China Announces 105% Tariffs on Chickens in Retaliation for US Steel and Tire Tariffs
In Steel Tariffs Show Protectionism On The Rise, I noted that 145% steel pipe and steel grating tariffs would bring a reaction from China.
Who Benefits From This?
Essentially no one. Potentially a few hundred steel workers get jobs back, but everyone using those products has to pay more. Demand will slow and price pressures will increase on everyone using those products. In aggregate, more jobs will be lost as a result of these tariffs than gained.
And that is just on the surface. Think China will not react? A nice clear message would be for China to cancel plane orders from Boeing or industrial goods from GE. Even if China is not so overt in its message, it is foolish to think there will be no repercussions over this.
The rising tide of protectionism is not a good thing. It never is.
105% Tariffs On US Chickens
Retaliation for 145% steel tariffs (on top of huge tire tariffs) has arrived: China announces anti-dumping steps on US chicken.
China announced anti-dumping duties of up to 105.4 percent Friday on imports of U.S. chicken products, adding to trade strains with Washington.
The case comes amid mutual accusations of protectionism by Beijing and Washington which both say will hurt efforts to end the global economic downturn.
A preliminary investigation concluded U.S. exports were being sold at improperly low prices that harmed Chinese competitors, the Commerce Ministry said. It said importers must post a bond until a final decision is reached.
Beijing launched the investigation in September after Washington raised duties on imports of Chinese-made tires despite vigorous opposition from China.
The two governments also are embroiled in disputes over access to each other's markets for steel pipes, movies and books and other goods.
The chicken duties take effect Feb. 13 and apply to whole birds, chicken sausage and other products, the Commerce Ministry said. Included are chicken feet, which most Americans throw away but which are a delicacy in southern China.
Companies that appealed the ruling will pay lower duties of 43.1 percent to 80.5 percent, the ministry said. Tyson Foods Inc. will be charged the lowest rate, while Pilgrim's Pride Corp. is at the top end of that range.
Importers that did not appeal will be charged 105.4 percent, the ministry said.
