The Impact of Chinese Imports on the US Economy

Introduction 

The main point in this article revolves around who is to blame for the harm caused onto the USA workers. According to the ADH, the blame lies entirely on the Chinese Imports. Bob, (2017), states that the ADH indicate about a fourth of the entire unemployment cases in the USA between 1990-2007 and 1999-2011. The latter period saw more than 2.4 million jobs being lost in the period. Nevertheless, according to Mr. Feenstra, he counters the ADH claim that the Chinese imports did not play any role towards increased unemployment rates; rather, the housing boom of 2000 and 2007 should be blamed. It is because, the areas whereby the Chinese imports hit did not experience any housing boom, as such, the unemployment should be laid upon the lousy construction industry prospects. However, the ADH claims that the housing boom was a causality of the Chinese imports shock. This is because workers lost their jobs and they could not afford new homes thus they had to vacate the areas bringing about a depressing demand for houses. According to Bob, (2017), Mr. Feenstra and the ADH do not come to an agreement on what brought about increased unemployment rates and housing boom thus there is a need to carry out more research on the matter.

View on Relevance 

Reducing the unemployment rates in the USA is a matter that has been of uttermost importance to any successive government that has taken power in the country. High unemployment rates bring down the economic stability of the country which in turn affects other sectors in the long run. When people become too dependent on other or even the government, it means that some other economic sectors will grow slowly as funds will have to be diverted in helping the people. As such, this article is very relevant in that, it calls for the different agencies and officials who are given the mandate to come up with economic policies that will help drive the economy. The article also calls for people to work together in solving any issues affecting the American nation. There is no need for fighting each other and trying to prove how one individual is right or wrong. Instead, people should share information and come up with an overall finding on what is affecting the country and find solutions that will effect positive changes to the economy as in this case, increase employment rates.

Impact on Business 

The article has an impact on business given that the USA does not only depend on local trade to grow its economy. In fact, China is the largest trading partner for the USA. It means that, if the country might try to impose sanctions that will restrict the Chinese imports in the country, most businesses that depend on the imports and also export their goods to China will become affected. It is the duty of the government to ensure that it manages the unemployment rates in the country; however, this does not mean that it has to implement policies that will affect its international businesses. There are other methods through which it can use to reduce unemployment rates. High unemployment rates also affect the businesses for this will mean that people will have no disposable income. They will not have money to spend therefore not purchasing any goods or services that the companies offer. In the end, the businesses are not able to get any revenue.

Conclusion 

This article is relevant to some of the current issues affection g the USA. Due to the increasing unemployment rates, various people have started pointing fingers to different causes for this increased rate. Unemployment rates should be controlled by setting right policies by a government. Despite other factors playing a role towards the growth, the government has in place all the necessary instrument to regulate the rise. On the other hand, it should ensure that whatever policies it sets, they will not backfire on other sectors of the economy.

References

Bob, .D. (2017). On China Trade Shock, Economists’ Debate Shifts to Housing Boom . Wall Street Journal . Retrieved 18 April 2017 from https://blogs.wsj.com/economics/2017/04/14/onchinatradeshockeconomistsdebateshiftstohousingboom/.