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Morici: "Governor Romney is right. The United States must get tough with China"
Howard Richman, 9/19/2012

University of Maryland business school economist Peter Morici had another great blog posting on CNBC yesterday (Romney Is Right—US Must Get Tough With China: Morici). He begins:

Governor Romney is right. The United States must get tough with China to restore growth and good paying jobs.

He dismisses Obama's token efforts, such as his latest WTO complaint that China is dumping autoparts and cars on the U.S. market. According to Morici:

President Obama lets China and others cheat on the rules, with only token opposition at the World Trade Organization.

One need look no further than the following graph that we put together in order to see President Obama's total failure:

ChinaTradeThru0712.gif

Morici argues that it will be impossible to bring back American prosperity and jobs without switching presidents. He concludes:

The trade deficit directly slices $600 billion off GDP, and nearly $1 trillion through the multiplier effects usually associated with a permanent boost in spending or a tax cut.

Americans lose 10 million jobs and wages sink, and that’s what is destroying the middle class.

Campaigning in 2008, Barack Obama promised to deal with Chinese currency manipulation and protectionism, but he has failed beyond token complaints to the WTO.

It will be impossible for the United States to create the 14 million jobs needed to bring unemployment down to pre-recession levels without taking on China.

For that Americans need another president—one with the courage to stand up to China.

Every part of Morici's commentary is worth reading. It includes a clear and concise summary of our trade relationship with China, both the benefits and the costs.

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