The Trans-Pacific Partnership Trade deal is terrible even apart from its quantifiable economic effects, as it threatens our environment, our health, our democracy, our sovereignty, our security and many other things. But it is also a lousy deal on the pure economics, which is why it is currently being sold to the American people and Congress using bogus economic analysis. Read more
Two congressional Democrats on Monday blamed Ford Motor Co.’s exit from Japan on the lack of currency manipulation provisions in a sweeping Asia-Pacific trade deal. Read more
It took less than a year for America’s factory output to rebound from the 1991 recession. It took 3½ years to bounce back from the 2001 recession. Now, six years clear of the Great Recession, manufacturing output still hasn’t returned to the pre-crisis levels it reached in 2007, according to revised economic data from the Federal Reserve. Read more
Growing trade deficit and the collapse of manufacturing output following the Great Recession are directly responsible for the loss of 5 million U.S. manufacturing jobs that occurred between 2000 and 2014. As the figure below shows, manufacturing started rapidly declining in 2000, just as the U.S. manufacturing trade deficit began to rise sharply. A rising trade deficit indicates that U.S. manufacturers are losing business to manufacturing industries in other countries like China and Japan, who manipulate their currency to make their goods cheaper and therefore more appealing to consumers in the United States and elsewhere. This leads to reduced demand for goods produced by U.S. manufacturers, both at home and abroad.
Between 2000 and 2007, growing trade deficit in manufactured goods led to a loss of 2.6 million manufacturing jobs. When the Great Recession hit and consumers pulled back on their spending, the collapse in demand for U.S. manufactured goods caused a loss of 2.3 million additional manufacturing jobs. While in the past the manufacturing industry has typically regained most if not all jobs lost during a recession, manufacturing employment after the Great Recession has experienced an anemic recovery—only 900,000 of the 2.3 million jobs lost have been recovered since 2009. This is because the manufacturing trade deficit has skyrocketed since 2009 as a result of the rapid growth of imports from China and other currency manipulators. The manufacturing trade deficit grew from $319.5 billion in 2009 to $514.6 billion in 2014—very close to its pre-recession peak of $558.5 billion in 2006.
Less than three months before China shocked markets with a surprise devaluation of its currency, a top Chinese exchange-rate official told a closed-door gathering that Beijing had no need for such a dramatic move. Read more
There are roughly 5.1 million fewer American manufacturing jobs now than at the start of 2001. And China is to blame for more than one-third of American jobs lost, says a new report. Read more
