Ryan Wilding ECON 4423 Policy Brief Professor McNown Pros and Cons: Legislation to Impose Sanctions on China for Currency Manipulation The renminbi currency has experienced a fixed exchange rate. The renminbi is seen as undervalued because the value of its currency has been scrutinized to be artificially low, which gives Chinese companies an unfair advantage over floating exchange rate countries such as the US. China has purchased more than $2.2 trillion in foreign exchange reserves in order to maintain an undervalued currency (Scott 2010). China buying US reserves increases the demand for dollars and increases the value of the dollar. Primarily, this makes Chinese goods cheaper in the US and US goods more expensive in China. Keeping a weak currency helps China to boost international exports because other countries purchase China’s goods at a relatively lower price. This helps to maintain growth in China’s economy and provide more manufacturing jobs, a staple to their economy. …show more content…
This causes US exports to become less competitive and Chinese imports more attractive, ultimately increasing foreign demand. The US should feel threatened by a potential loss of domestic demand causing a loss in available jobs in the US (Pettinger 2011). US consumers are able to purchase Chinese goods at a lower price at the expense of a decreased demand for US goods, leading to a less robust export economy in the US. The US should propose legislation to impose sanctions to limit the risk the US faces concerning weak growth, larger trade deficits, and increased unemployment. On the other hand, the US should halt the threat to propose legislation for fear of decreased buying power of Chinese goods. In favor of the sanction, the US’s current focus in on jobs rather than buying power providing a greater economic benefit to the US by threatening
In 2001, Former President George W. Bush signed the No Child Left Behind (NCLB) Act. This Law launched the national standards and testing movement of the United States (2004).
In conclusion, I think that China should change its policy because it is damaging not only the U.S. economy but the economy globally. Countries such as the United States are still recovering from the economic recession we are still leaving in. It is obvious that if China let the Yuan appreciate their exports will decrease and imports will increase making their trade surplus to decrease. If this happens international countries will be grateful because by this happening means that their export will increase and employment will increase. Countries should avoid doing currency manipulation or artificially devaluing their currency because it just hurts the global economy and it promotes other countries to do the same – it hurts everyone.
In “ A Trade War with China would backfire on Trump - and America.” (2018) by Zachary Karabell, the general argument is that America will suffer from more damages than China if the Trade War begins. Karabell explains that a trade war will make America lose a large number of money of trade. Because of China-U.S. trading system, Americans are able to afford and purchase most good they need for their lives, and if the war happened, prices will raise up, that would impact Americans’ lives.
Republican Senator Lois Kolkhorst is the author of the controversial Senate Bill 3 that was made to require people in certain settings to use the bathroom that matches the gender on their birth certificate. Public schools would be the primary target for this bill, but it would also do away with certain parts of city laws that protect the gender identity of transgender people. Ultimately, the bill’s author is seeking to use the bill as a form of protection and privacy for children. While the opposing side of the Senate, which consists of only Democrats, claims the bill will do more harm to transgender children and their friends.
I think it also works to undo the notions that China was stealing away all our jobs in the apparel arena, because despite the complex protectionist measures taken, America still lost lots of jobs in the textile industry. The author points out that this is because of technology, and that when it really comes down to it, China is losing their textile jobs at a rate faster than the U.S. did (142). She also goes over some of the unintended consequences of the measures such as increased material costs as a result of the increased import barrier (142). She also suggests in this section as an alternative to erecting trade barriers, to instead compensate workers of the losing industries, known as the compensation principle (151). Lastly, with the lift of the measures and quotas by 2005, there will be a new surge in Chinese goods to America, as illustrated in figure 9.1, page 167. China’s percent increase after release from the quotas will measure some 900%.
The right to freedom of religion has started huge debate within the last few years. During the year of 2013 the Parti Québécois political party made a plan to eliminate workers from displaying any symbols of their religion in the public sector.
The outcomes of this legislation had many pros and cons many of which more serious than others for their own reasons. Some of the cons of this legislation are for one the immigrants had no right to a hearing in the court and had no right of evidence. Also, it was considered as unconstitutional according to the Republicans. Finally, another big part of this legislation is that it hindered freedom of speech and freedom of the press because some people were arrested when they spoke out against these acts or made journal articles bashing the Federalists. Some of the pros of this legislation passing somewhat came from the cons, for example, all the people who were arrested under this act were pardoned by the new president which was Thomas Jefferson.
Not everyone like the superintendents are for Senate Bill 1. Some people oppose the bill because they do not like it. There are many reasons why people would vote for the bill along with many reasons that someone may oppose the bill too. But the ultimate goal of this bill is to “raise each one of Illinois’ 860-plus school districts to individual adequacy targets—or the amount of money needed to properly educate every student—through increased funding from the state” (Masterson). But getting to this point has a lot of controversy. One of the major factors that people may not like this bill is that they don’t want to bailout the Chicago Public Schools. Chicago Public Schools are the only school district in the state providing
Alberta’s history is deeply rooted in agriculture. As a resident of a rural municipality in Oil Country, the stories of immigrants overcoming the harsh climate, lack of infrastructure and a plethora of other hardships to establish a better life for future generations are ever present. However, with the NDP government’s controversial Bill 6, many family farmers are wondering if their way of life is endangered. This raises the question: what effect will Bill 6 have on this long-lasting tradition? By differentiating between the facts and fiction, it will become apparent that this piece of legislation will set the groundwork for the future generations of farmers in Alberta.
China, the largest growing market in the world, currently has a policy regarding monetary regulation that allows the Yuan to “float”. This has seen the Yuan appreciate by approximately 24% over the past few years. Today, the exchange rate between the Chinese Yuan and the American Dollar is approximately 6.3 Yuan to 1 Dollar. Some argue that China should revalue the Yuan again the dollar, establishing a more fixed exchange rate. Others believe that current should allow
The change in the exchange rate policy to move to a more flexible floating exchange rate system will inevitably compromise China’s current advantageous position in trading especially the export which takes a heavy weight in China’s GDP. The appreciation of RMB will deprive the Chinese enterprises of the advantage to leverage the cheap materials and labor to compete in the international market. This might be a positive indication for China’s importers who has a focus on the domestic markets rather than the international market, where the importers’ purchasing power gets enhanced if the domestic currency appreciate. However, China is still heavily relying on export to grow their GDP at this point and a revaluation of RMB would be very dangerous for the country. Thousands of factories counting on exports might be closed and millions of workers would lose their jobs. As pointed out by Morgan Stanley Economist Andy Xie in the case, “China’s priority is stability and currency flexibility should not be allowed to conflict with this goal”. On the flip side though, a revaluation of the RMB would not necessarily change the current situation of US and EU who had a large trade deficit with China. The reduced imports from China are unlikely to stimulate the growth of the domestic productions of those
My congress bill was about having an open campus during lunch for Merrimack Valley High School’s 2018-2019 school year. This would mean that during lunches, you could leave campus to get food from a different restaurant or establishment. There would be a complicated sign out system to ensure that no students are skipping. If they were found skipping, there would be consequences. To make sure that the system we would be putting in place would work, we had to do research to back up our proposal.
economies of both nations. This problem the United States must face is whether it ought
Statute laws are Federal laws approved by Congress and the President of the United States. While anyone can propose that Congress adopt a law, the bill must pass both Houses of Congress before being signed or vetoed by the President. If the President veto’s a bill Congress has the power to override that veto with a two-thirds approval vote. The bill then becomes law. Statutes are the primary source of authority. Federal Statutes outweigh local and state statutes. For example, even though Colorado, Washington, Orgeon and D.C. have legalized the recreational use of marijuana, under federal law it is still illegal.
The US and Europe felt that the RMB was undervalued for several reasons. One reason is that China’s exports had dramatically increased, growing 30% from 2004 to 2005, making China the third largest exporter in the world and accounting for