How China's Currency Manipulation

1562 WordsNov 14, 20157 Pages
Discuss How China 's Currency Manipulation Has Cost the United States in Jobs and Production China’s currency manipulation by devaluing the yuan degrades our current economic thinking and has heavily impacted the United States resulting in growing trade deficits and job losses. The elimination of currency manipulation could result in millions of new jobs, rebuild the economy, and reduce trade deficits. Although, some economists believe currency manipulation is not at fault for these negative results, but other economists have offered ideas to improve the situation for positive results. “Development experts” have told countries that devaluing their currencies would help them grow. The result of devaluing their currency would ultimately make their exports cheaper and imports dearer gaining them a greater merchandise trade surplus, but this action affects the countries around them ("Message To Ambitious”). For example, the iPhone 4 has one-hundred and seventy-one dollars worth of parts that are assembled in China, but only about six dollars of those parts are manufactured there. The remaining parts are imported from other countries, such as Japan, Germany, and the U.S., but the U.S. only exports ten dollars worth of those parts to China (“Gold and the Wicked Magicians”). This devaluation risks the ability of economic growth and will therefore further political disruption not only here in the U.S., but also around the world (“Why China’s Devaluation…”). The U.S. has suffered the
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