I've finally found a common trait with President Bush; we both tend to only half-heartily pay attention to details when we're not very keen on the subject. In my case, it'll mean lower grades in certain classes. Unfortunately for President Bush, his consequences will be much higher. Many of the 2.7 million jobs lost in the last few years have come from the manufacturing sector.
The president is trying his hardest to cater to the remaining people in the field because many of them are in swing states which will be extremely crucial for the upcoming election.
Bush is trying to resuscitate the sector when we're better off with its demise. It's unfortunate that so many jobs have been lost, but manufacturing is dying in America.
In classic Bush form, the President seems like he's willing to partake in drastic measures for short-term success in order to help these people while ignoring the international economic repercussions.
The President is wrapping up his trip to Southeast Asia with an appearance at the Asia-Pacific Economic Co-operation Summit. He is trying to recapture some jobs by asking China to strengthen their currency- the Yuan. China currently pegs their currency to the U.S. dollar while other countries in Southeast Asia intervene in the currency market. This has resulted in a strong dollar, and Bush is desperately trying to get countries, especially China, to strengthen its own currency to drag down the dollar.
If his wish is granted, U.S. companies will have less incentive to send jobs abroad, and shoppers may shun foreign products because they'll be more expensive. It's unlikely,however, that China will bow to U.S. demands. China has a $100 billion trade surplus with America.
The administration should ease off any requests; we're already coming off as extremely ungrateful. China has been helping with the North Korea tensions, and Japan has pledged billions of dollars for the reconstruction of Iraq. It's unreasonable for us to expect these countries will hurt their own economy for our benefits.
There is speculation that the White House may intentionally weaken the dollar if foreign countries don't heed to its demands. Weakening the dollar may help in the short run, but it may have tremendous negative effects for long-term fiscal policy. Because foreign countries hold a vast stake in our treasuries, they may panic and sell part of their stake since the dollar will be significantly weaker. Such a situation will only make it harder for the U.S. to finance our debt.
We shouldn't be willing to risk so much in order to save manufacturing jobs. The amount of people in the sector has fallen to a paltry 12 percent. Aside from alienating countries that help us, we're fighting a lost cause. We're not experiencing a jobless recovery only because our jobs are being outsourced. We're becoming more efficient every year, and with increased productivity, factories don't need as many workers anymore.
Americans should face the inevitable. With globalization and capitalism being as dominant as they are, those fighting for U.S. manufacturing jobs will crumble faster then General Custer if they continue the fight.
It doesn't make sense to defend these jobs when they can be done cheaper in numerous places in the world. It's easy for everyone to feel bad for the people who have lost their jobs and to complain about countries like China stealing jobs. In reality, though, a majority of consumers are not willing to sacrifice their savings on products in order to save a few jobs. We should accept the brutal truth and move on to more promising fields.
Vijay Ramanavarapu is a junior in finance. He can be reached for comment at ramanavarapu.1@osu.edu.
