Enough Already

China's announcement yesterday that their currency was not undervalued was stated with the same feigned sincerity--and faux shock--with which the Republicans so passionately claim that they are "for America."

Both lies.

The "Renminbi"

Most economists believe that the Chinese currency, we will call it the "ren" for short--renminbi---is undervalued by 20% to 40%. In very simple economic terms this means that when they produce something, it comes onto free and open markets, like the US, at least 20% to 40% less expensive.

When we take into account that the average Chinese factory worker is little more than an indentured servant--he receives a small wage, is fed in the company cafeteria and lives in company dormitories--the costs for the imported, say, hair dryer, are yet another 20% to 40% less than the average US worker's cost.

Conservatives cry that the unions have priced US labor so high that we are not able to compete with countries like, China, India and Brazil. Conservatives are all for these amazingly open markets which guarantee the lowest possible price for the shit sold at Walmart, Target and other box-stores. Their claim is that these artificially low prices are actually better for the American consumer: the lower the price for that hair dryer, the better.

So, the cost of materials for the hair dryer is $4. The cost of labor is $.75; the devalued "ren" makes the overall price actually about $3.75, in real terms. So, when we add the transportation costs to the hair dryer, Walmart receives the hair dryer for about $4.05. They then add their cut, say, 30% to 50% and the final price is $5 to $6 before tax.

An American made hair dryer--if you could find one--would cost around $9 to $11. Or, the difference between the devalued "ren" and the "indentured servant labor wages" paid at the Chinese factories. In addition, when anything is exported to China from the US, the Chinese regularly manipulate Western laws by filing fictitious complaints to the WTO about American price-fixing; devalued Western currencies; or, they cry that they are a "developing" nation and should be permitted to develop the way they see fit.

The Chinese rulers bend reality, manipulate process and the good will of a more democratic nation--remember China is a communist nation in the true sense of the word--in ways very similar to how we see the GOP manipulating facts about health care reform ("government takeover of 1/4 the economy"), Global Warming ("see the snow, what warming?") and so many other issues they are not in agreement with the Democrats on; and, on issues that most intelligent and educated people agree are real and need fixing.

Lower Prices are Good

Don't get me wrong, there is nothing bad about lower prices. But, our sole and most important role as Americans is not to consume shit from Walmart. Sundays are not supposed to be spent trolling about malls and shopping centers looking for more variations of cheaply made shit that we threw away 3 months ago only to buy again today for $.50 cents cheaper--just because there is nothing else to do.

We, as a nation, should not want to be in competition with Brazil, India or China. In all honesty, I wouldn't want to live in either one of those nations. They are poverty stricken, filthy in many respects and despite rich and amazing cultures--and booming economies--they are solidly Second World nations; if not Third World, even. China's ecological disaster kills hundreds of thousands each year. And, all of that is done to make sure that a) the Chinese have work and b) the West's stores are filled to bursting with cheap and unnecessary shit; guaranting point "a."

In addition, as the world tries to pull itself out of this recession, the surplus of manufactured shit that China has created simply denies any efforts small or mid-sized American businesses might try to hire and employ Americans.

For example, Joe's small shoe company plans to hire 20 artisans to make great shoes. Joe makes the shoes but in the time that he spent crafting amazing and high-quality boots, let's say, Chinese marketers saw that niche and filled it in 2 months with similar boots--the Chinese ones retail for $30 and last 3 months; the American ones cost $120 and last for 3 years.

But, we will never buy the American ones because Joe cannot find a market/retailer willing to stock them. Twenty Americans are not hired; and, those twenty Americans, who would have been paid a solid middle-class wage won't be able to spend in their communities. Yet, they will be able to get jobs in those retailers selling Chinese-made shit and buy that shit for a quarter of the price. Three months later, they again buy those boots and three months after that they buy another pair of boots because they keep wearing out.

When is enough, enough? When do we stop catering to the Big Business/GOP and say to China, basta? When do we stop looking at Americans as mere consumers, as bottom-lines for the whims of Big Business?

I know when.

On April 15th the US Treasury is required by law to report to Congress about what countries may be manipulating their currencies to the harm of our own economy.

On April 15th, if the US Treasury, guided by the Obama Administration, tells the US Congress, fortunately still in the hands of Americans for America (and not solely for Big Business) that Americans are unemployed and starving (but they can buy blow dryers for $5!) because of China's malfeasance, then there is hope for our economic recovery.

My proposal (and that of some Nobel Prize winning economists): temporary surcharges (25%) on all items imported from China. When they value their currency correctly, then we remove the surcharges.

April 15th is right around the corner. Let's keep our fingers crossed.