Trade Deficit Destroys 3 Million Jobs a Year

Finally an economist steps up and places a "job loss" price on China's currency manipulation. Beijing undervalues the yuan by 40% leading to imbalanced trade, a flood of cheap imports, and loss of American jobs. While it is easy to "blame China" for the entire situation - typical American politics in Washington also deserves an equal share of the blame. It is time for the U.S to address the continuing trade deficit by placing appropriate tariffs on nations that do not freely float and manipulate their currencies. Only these type of measures will restore trade balance and American manufacturing.

Trade Deficit Destroys 3 Million Jobs a Year

A solution is proposed "The United States should impose a tax on dollar-yuan conversions in an amount equal to China's currency market intervention divided by its exports -- about 35%. That would neutralize China's currency subsidies that steal U.S. factories and jobs. It is not protectionism; rather, in the face of virulent Chinese currency manipulation and mercantilism, it's self defense."