13. End Outsourcing and Currency Manipulation

[The 99 Declaration]

Subject to the elimination of corporate tax loopholes and exploited exemptions and deductions as stated in grievance five, tax incentives will be permitted to entice businesses to hire our citizens rather than outsource jobs. Conversely, an “outsourcing tax” should be introduced to discourage businesses from sending jobs overseas and companies that continue to outsource will be barred from earning income in U.S. markets. Tax incentives should also be offered to U.S. companies that invest in reconstructing the manufacturing capacity of the United States and hiring our citizens to produce and innovate. This country must again competitively manufacture everyday products in the United States rather than importing them from countries like China and India. To do business in the United States and gain access to the world’s largest and most lucrative market, corporations must make slightly less profit by hiring American workers and paying them a living wage rather than maximizing every penny of profit to the detriment of our society. Congress must implement legislation (see e.g. H.R. 639) to encourage China (which undervalues its currency, the Renminbi, by an estimated 40%) and our other trading partners to end currency manipulation and reduce the massive trade deficit. China’s access to U.S. markets should be replaced with U.S. companies until they are in compliance with trade and currency agreements.

[tdrivertom]

I would suggest dropping "ending currency manipulation." We are talking largely about China here... the worst offender when it comes to currency manipulation. You are not going to get China to do something it doesn't want to do, simply by having a 3 day National General Assembly on the 4h of July.

Secondly, combine the idea of ending outsourcing with the grievance on Jobs for all Americans. That way there will be one less grievance to work on.

[christophercarney]

I, for one, would like to know just what currency manipulation means.

China's currency, the yuan, is pegged to the US. dollar, even though both currencies are floating on the world exchanges (anyone who wants to know what this means please ask). This is primarily the reason that China can continue to export goods to the United Sates. Basically, the United States exports its inflation world-wide thanks to the Bretton Woods agreement of 1945 (google if you haven't seen this before), and in order for China to continue to sell its cheap plastic junk (among other things) to the US, it must debase its currency "in line" with the U.S. so that it can continue this practice.

So the basic question we should be asking is not why IS China manipulating its currency, but why does China HAVE to manipulate its currency?

[tdrivertom]

No offense Christopher Carney, but some of what you said, flies in the face of everything I've read on the matter of China manipulating it's currency.

There are many economists who would take issue with you. The fact that China has pegged it's currency to the dollar is the problem. Thus far, China HAS NOT allowed its currency to "float" on the world exchanges. They have done this for the obvious reason to keep the cost of their exports low.

Again... I agree with the grievance of "Ending Outsourcing," but I think this could be addressed with the Grievance on Jobs for Americans. "Currency manipulation is another one of those useles topics that should be avoided at the NGA. It's not like nobody in our government is aware of the problem. They don't need the 99% Declaration to "staighten things out."

Besides... if anyone wants to talk about "currency manipulation," let's talk about the Federal Reserve. This is the REAL problem!

[christophercarney]

Agree on the Federal Reserve tdrivertom. I won't expound upon what I said earlier because it is far more complex than is indicated in either of our posts, but I will say this in response to your 2nd paragraph,

When the hell have the preeminent economists gotten anything right in the past several years?

Also, it is possible these same economists are not telling you (and everyone else) what is really going on? Remember, they profit off our ignorance.