Most Favored Nation Trade Status And Further Job Losses

As we begin a new year, Republicans have promised to challenge the wasteful spending policies of Democrats by cutting spending.  Much of the spending cuts proposed will come from prominent domestic initiatives that were created to assist displaced workers and the disabled.  Although most will acknowledge that spending cuts are important, other problems are much more critical to tackle in order to secure the United States economy.

What quite a few individuals don't realize is the fact that spending cuts are required not just because of short term economic stimulus spending programs, but because tax revenue is down for all levels of government.  Tax revenue has been greatly diminished because people are spending considerably less not because of choice but because of necessity.

We are witnessing the greatest overseas exchange of financial power ever seen.  This shift of wealth is related to job losses in many countries that are too politically polarized to deal with the more dynamic leadership found in countries like China.  While political figures in many Democracies around the globe bicker about solving their financial troubles, communist countries like China have the ability to rapidly adapt and posture themselves for even more economic expansion.

As seen towards the end of 2010, politicians can work with each other to do the work of the people.  However, such legislation is minor when compared to the real problems they have to tackle in an effort to get American citizens back to work.  No more can these leaders ignore the advantages of gainful employment, the employer paid medical insurance coverage that many employers offer and the ability for adults to take care of their entire families.

Quite a few people have challenged the wisdom of supplying Most Favored Nation trade status to places like China.  All things considered, China is a communist country, has a terrible human rights record and repeatedly exports items that include dangerous amounts of poisons.  Apart from harmful items, China is also the recipient of much of the job losses from Democracies around the globe.  Many individuals believe, and rightfully so, China’s MFN trade standing really should have been terminated many years ago.

Complex remedies for dealing with declining tax receipts, and bloated government budgets, will take far more then spending cuts to correct.  Political figures around the planet must face reality with the fact that their domestic businesses are unable to compete against foreign workers that get paid $0.70 and hour or even less in countries like China.  To be successful in a global economy, politicians must realize that all countries need a manufacturing industry so that their countrymen produce something which can be sold abroad.