China and U.S. Manufacturing Jobs
When we talk about the long-term decline in U.S. manufacturing employment, China often comes to mind. We may consider wage differentials, or perhaps currency exchange rates that accrue benefits to China. What we often don't hear is the proximate cause allowing these forces to cause U.S. trade to be imbalanced.
Recent research has shown that opening up trade with China by granting permanent normal trade relations in late 2000 might be the cause. By examining the cause of those job losses, we might assess whether those lost jobs may come back. The drop in U.S. manufacturing is no secret: Data from the Bureau of Labor Statistics show that U.S. manufacturing employment fell from 19.6 million in 1979 to 13.7 million in 2007 (to use a date that pre-dates the Great Recession). And more than half of those job losses occurred in the years immediately following the relatively mild 2001 recession. Why so many after that downturn?...465 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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