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  • Chinese Imports Create U.S. Jobs and Help the Poor

    The recently concluded presidential campaign contained a substantial amount of China-bashing from two candidates fighting over who would be tougher on trade.

    In reality, getting tough on trade would mean getting tough on poor people and destroying U.S. jobs.

    A working paper from University of Chicago scholars Christian Broda and John Romalis concludes that imports from China have reduced income inequality by lowering the price of products consumed by poor people in the U.S. According to Broda:

    We are underestimating the gains from trade. The current statistical interpretation ignores the fact that a poor household today can access goods that, in the 1960s, they could not—microwaves, DVDs—and, more importantly, that the prices of the staples that lower-income households consume have also gone down dramatically.

    Research from The Heritage Foundation shows that, in addition to helping poor people by lowering prices, imports from China create jobs. In 2010, imports of clothing, toys, and sporting goods from China helped support 576,000 jobs for Americans engaged in port offloading, transportation, wholesale and retail sales, store construction, marketing, real estate and financial services, and the rest of the work needed to move goods from ship to consumer.

    As America enters the holiday shopping season, perhaps we should pause to give thanks for the low prices, new jobs, and economic prosperity generated by imports from China and elsewhere.

    Posted in Featured [slideshow_deploy]

    6 Responses to Chinese Imports Create U.S. Jobs and Help the Poor

    1. Jimi James says:

      I do not assume that either Romney, nor Obama, would have halted Chinas imports, at least on Romneys side, it is true. However, keeping China in check and making trade an even playing field was the intent of the conversation. China is well know for their parlor tricks to manipulate their currency and the markets in their favor….

      • Jim says:

        Perhaps you missed our own Federal Reserve's currency manipulation? We stand just as guilty of that as the Chinese. The only difference is, Americans only hear our own government's propaganda on the subject.

    2. David says:

      Sorry for your post. China is an enemy willing to poison and maim users of their products, and not have to pay retribution for so doing. Like all political sameness, they are excused because they hold the United States by the dangley bits. And I beg to differ, they do not help the poor by forcing them to buy inferior and useless products._I usually agree with everything posted on this site, but this draws a line.

      • Jim says:

        Habitually poisoning your customers tends to be bad for business. It cuts down on repeat buyers. I doubt Chinese products are more or less safe than products from anywhere else, including the US. The media just sensationalizes stories about China because they know a certain segment of the population is eager to get riled up about the Chinese and that gets them more viewers and then more ad revenue.

    3. Perry OK says:

      We need the trade that happens with china. What is often overlooked is they need US more. So why give up that status? Set acceptable standards and enforce them. Keep kissing all those tails and you will stain your teeth as well as our nation. I personally refuse to send my products in raw form to china and make my large buyers sign a form that holds them accountable(they pay all expenses for legal ect.).

    4. Lerrad says:

      everything in our current government led society is upside down and inside out but politically correct ,while the values, institutions, motivations and successes of our free and independent marketplace which have made this country the magnet of freedom and prosperity on this planet, have ironically, been villified and demonized by our own govenment – dooming us to sameness and failure of our way of life we call freedom and individualism.How low must we be forced to go before we realize our way,albeit imperfect, has been, is, and will continue to be the best model (which is currently being successfully practiced by our two former superpower adversaries) for cultural, political, economic and social evolution and survival mankind has devised

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