Nov
8
America’s latest solution to their, “What-is-wrong-with-America’s-economy Derangement Syndrome”
Posted by: admin | November 8, 2011 | Leave a Comment
The American government passed a bill during October 2011 that imposed tariffs on imports from China because China is ‘manipulating its currency‘ by ‘keeping it artificially low.’
Background Info: American corporations went to China for manufacturing because of China’s low cost of production. This caused American corporations to earn a larger profit and Americans losing their job to low-waged workers in Asia. However, American corporations soon realized that Chinese products lacked in quality thus consumers stopped buying Chinese products. American corporations then complained to 
their government that when they pull out of China, they will have to exchange their 8 yuan for $1 USD which, according to the American corporations, is unfair since China is ‘keeping [their currency] artificially low. This along with un-employed Americans supported the tariff.
The article did not explain the whole story; I feel that the article was highly mediated in favor of Americans. Firstly, it puzzles me in that America borrowed huge loans from China to help with the US debt crisis and now America repays China by imposing tariffs on Chinese products (maybe due to US government: President did the borrowing, Congress imposed the tariffs). Also, China isn’t purposely keeping their currency low since their currency has always been lower than the American currency. The article just failed to mention that American corporations knew that the currency conversion was $1 USD to 8 Yuan at the time they converted their USD to the Chinese Yuan, which seemed like a great deal since the number 8 is more than 1; however, the monetary value is equal/same.