- Too much public debt. The U.S. owes China over $1.1 trillion. This is public debt that the U.S. government has borrowed from China to pay for various programs / policies etc. (to put it very simply). This revenue helps build another country's infrastructure and economy, the lack of it helps to diminish ours.
- Currency manipulation. There is broad consensus that the Chinese have been manipulating their currency for some time. This makes their exports to the U.S. cheaper, and our exports to them more expensive. Economists say... Chinese currency (the yuan) is very undervalued compared to the U.S. dollar, and has been for some time. This likely is a primary reason why a toy made in China may be much less expensive than a similar toy made in the U.S. (questionable manufacturing processes aside). A typical consumer would buy the toy made in China based on price, not realizing s/he is helping to support this unethical practice.
- High unemployment. U.S. jobs move to China to fulfill the demand we have on their products. It is a vicious circle, and many of us are unknowingly contributing to it...unknowingly putting our neighbor out of work.
- Intellectual property theft. China is allegedly stealing U.S. intellectual property, including piracy and counterfeiting of U.S. software. This contributes to lost revenue, lost jobs, and lost tax revenue. Read more at Huffpost.
Buy from Mompreneurs or Buy from China?
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