By James McKee
The US has been moving its production to countries such as China and Mexico for over 50 years now, and this gradual shift of factories and other facilities to foreign countries have taken away US jobs. Much like the city of Detroit when American car makers began to cut back production the entire country of the Us is finding itself without enough jobs to go around. This lack of employment has resulted in massive troubles for the US economy, the US needs to end its dependence on cheap labor and begin to pay more for domestic products. The United States has become accustomed to cheap and “affordable” products; but, cheap domestic goods are impossible to have without outsourcing the labor to other countries.
China’s economy has grown a great deal through the production and sale of goods for the US. China’s relationship with the US by way of this symbiotic financial agreement means that China is anything but supportive of domestic US production. This has become a losing agreement for the United States who has continued to suffer a loss of jobs in exchange for cheaper goods. China and the United States need to find a more mutually beneficial agreement that involves keeping some of the production in the United States; however, producing goods in the United States would mean that the goods being sold would be more expensive. The US must cut its addiction to cheap goods and be willing to spend more money on their products.
The USD will not be in good shape until the United States picks up its export rates, and this means that jobs and production will need to return to the US in droves. Luckily a battered US economy could result in American workers being willing to do production level jobs again. The USD would surely see a rise on the online forex exchange if the United States economy increases its export rates. The dollar and the Euro are both hopelessly
intertwined with goods that are too cheap, and this is a problem because there seems to be no end in sight for this agreement. The average US citizen is addicted to cheap goods and does not want to pay for products manufactured in the US. Without legislation or tax incentives that will encourage US businesses to keep their production in the US things will stay the same. This is a troubling time for the entire world, and we all need to pull together.
About the Author
Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the online forex trading regularly.
