Scapegoating China and Manipulating the Opinions of Americans – Part 3/4

November 7, 2012

In Part 2, we discovered that China’s unemployment rate among rural Chinese working in manufacturing reached 16.4% in early 2009 (while unemployment in the United States was only 9.3%), and from Forbes on October 18, 2012 we learn: Manufacturing jobs stand poised for a rebound as jobs get reshored from China — creating 2.5 million to 5 million U.S. jobs in manufacturing and support jobs. Worries about a severe job skills gap are largely misreported according to results from a Boston Consulting Group (BCG) analysis – part of the firm’s ongoing series entitled Made in America, Again.” 

In comparison, unemployment in the United States stands at 7.8% today. In another comparison, during 2007 – 2009 while China lost 23 million manufacturing jobs, the United States lost only 2 million in that job sector. Source: bls.gov

With numbers like these, would someone explain how China is stealing manufacturing jobs from the US?

In addition, the average credit card debt per household in the US (I’m not talking about the Federal national debt) is about $16,000 while total U.S. Consumer debt was $2.43 trillion as of May 2011.


The History of Economic Booms and Busts

US Mortgage Debt is more than $14 trillion and 40% of Americans have no retirement savings while 25% have no personal savings. In fact, 38% of American adults have no emergency funds to fall back on.

However, in China the average household saves almost 30% of its annual income. The average business saves about 45% of net profits and the government has a surplus savings rate of more than 50% of tax revenues instead of the US that has a national debt more than 100% of GDP–more than $16 trillion. The US has been spending more than a trillion dollars a year that it doesn’t have while China saves half of its tax revenues and invests in infrastructure and in other countries such as the US. Source: VoxEU.org

Does that sound as if China is a threat to the US and is stealing manufacturing jobs from America? Many in the US are self centered and do not consider that China trades with the world–not just America. In 2011, China exported about $1.6 trillion in goods to other countries while importing about $1.4 trillion. At the same time, China bought about $104 billion in goods from the US. Source: US-China.org

In addition, outside the US, the world sees China differently. The Pew Global Attitudes Project surveys thousands of people in 59 countries. For 2012 China had a 94% favorable rating while the United States had 40%.


The Hidden History of the Financial Crisis

Back to Abraham Lincoln, who said, “You can fool some of the people all of the time, and all of the people some of the time, but you cannot fool all of the people all of the time.”

We will discover what that means today in the last post in this series.

Continued on November 1, 2012 in Scapegoating China … Part 4 or return to Part 2

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Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

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Scapegoating China and Manipulating the Opinions of Americans – Part 1/4

November 5, 2012

If the traditional media in the United States or politicians campaigning for election are not bashing China, he or she may lose votes and/or an audience.

Why? Because many people want to believe what they want to believe. It does not matter what the facts from reputable unbiased sources reveal.

“Older Americans and Republicans are especially concerned about China’s emergence as a world power. About six-in-ten people ages 50 to 64 (62%) and 65 or older (59%) consider this a major threat to the U.S., compared with 48% of 30- to 49-year-olds and 43% of people younger than 30. Similarly, 60% of Republicans consider the rise of China as a world power a major threat, while 48% of Democrats share this view.” Source: Pew Global.org

In fact, I still run into Blog comments where people bash China for the tainted drywall (2009) or infant formula (2008).  However, these same China bashers will not mention that “Foodborne illnesses kill 3,000 Americans each year. Nearly 130,000 more are hospitalized. The aggregate cost of foodborne illnesses to the U.S. economy in 2011 was $77.7 billion.” Source: The Daily Ticker


Financial Crisis History Lesson – Part 1

Another example is when the US media focuses on economic problems in China that may lead to a financial disaster there. “China’s economic model that delivered three decades of double-digit growth is running out of steam and the country’s next leaders face tough choices to keep incomes rising.” Source: Yahoo! Finance and the Associated Press

Is it possible that all this attention on China is to take American minds off problems in the United States?

For example, during the three decades of double digit growth in China, in the United States there was Black Monday on October 19, 1987 when stock markets around the world crashed. In the US alone, the value of stocks dropped 22.78%.

Then the savings and loan crises in the US led to the failure of 747 out of 3,234 savings and loan associations caused in part by the tax reform act of 1986 that removed many tax shelters, especially for real estate investments.

Continued on October 30, 2012 in Scapegoating China … Part 2

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Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

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