The Federal Funds rate is still effectively zero. Surprise. Since 2008 the Fed has keep interest rates an unprecedented effective zero, giving a free ride to big debt and Wall Street. The phrase that pays from the Fed is a highly accommodative policy.
If anyone believes offshore outsourcing jobs is passé and not impacting U.S. labor markets think again. The Economic Policy Institute has published a new study showing America has lost millions of jobs to China's cheap labor market. From 2001 to 2013, the massive trade deficit with China has cost the United States 3.2 million jobs.
The U.S. Air Force has a motto: "Second to None". It's a shame that the U.S. economy can't make the same claim. After already over-taking Japan has the world's 2nd largest economy, the Chinese economy has just passed the U.S.’s to become the largest economy in the world.
According to a new report, ever since Bill Clinton granted permanent normal trade relations to China, the U.S has lost over 64,000 manufacturing firms and at least 5.8 million manufacturing jobs.
Want to know how to create up to 5.8 million jobs in three years? End currency manipulation. So says a new study released from the Economic Policy Institute. If currency manipulation was stopped, the U.S. trade deficit would shrink by up to $500 billion in three years, annual GDP would increase up to $720 billion, the federal budget deficit would be reduced by $100 billion each year and 40% of the new jobs created would be in manufacturing.
We have heard a great deal this year about manufacturing coming back to the United States. We hear about the diminishing wage gap in some Asian countries and the possibility of lower U.S. energy prices.
Manufacturing was once widely recognized as the outstanding strength of America and the basis of its prosperity, but manufacturing also has a more recent history of being almost a pariah. This newer view equated computer chips with potato chips, asserted that manufacturing is better left to others, and suggested that the nation is actually fortunate to be losing manufacturing and aiming to replace it with design, research, and services.
As the jobs crisis continues industry and government collude together on policies and agendas which won't help the nation. Here are some of their latest outrageous activities.
Congress is focused on all the wrong things to get people back to work. We hear day after day the drone of budget deficits, yet not a word is mentioned on the trade deficit. This is the problem Congress should be obsessed with. Our massive trade deficit is stunting economic growth and costing America millions of jobs.
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