With polls showing a tightening race in Pennsylvania, Senator Barack Obama appeared on CBS this morning and was asked about China.  The Senator offered some criticism of Beijing, but ManufactureThis believes he didn’t go far enough in presenting proposals that would support of American manufacturing.  Here’s the relevant transcript:

HARRY SMITH: …in Wilkes-Barre, Pennsylvania, where the candidate had harsh words for America’s fastest growing economic rival.

OBAMA: I am a strong believer in free trade, but I think that we have not been very savvy negotiators when it comes to China. I think they’ve played us. They definitely are stealing our intellectual property, and that has direct consequences in terms of the bottom lines for businesses here in the United States.

SMITH: …and there is concern about China’s violations of human rights.

SMITH: Should we be a full participant in the Olympic games?

OBAMA: I’m of two minds about this. On the one hand, I think that what’s happened in Tibet, China’s support of the Sudanese government in Darfur, is a real problem. I’m hesitant to make the Olympics a site of political protest because I think it’s partly about bringing the world together.

ManufactureThis suggests a more direct answer—one that all the candidates should give: “China cheats, but I won’t let them get away with it any more.  China dumps products, subsidizes its manufacturing, and artificially manipulates its currency—all in violation of world trade law.  As president, I will strongly enforce existing U.S. trade law to halt the downward spiral of American manufacturing.”

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  A New York Times article yesterday reported some alarming news.  Headlines ‘As Jobs Vanish and Prices Rise, Food Stamp Use Nears Record,’ it noted that “the number of Americans receiving food stamps is projected to reach 28 million in the coming year, the highest level since the aid program began in the 1960s.”

In Michigan, one in eight residents now receives food stamps.  It happens that Michigan has lost roughly 280,000 manufacturing jobs since 2000—the highest percentage of manufacturing workforce losses for any state in the U.S.  Clearly, these large-scale layoffs are having a ripple effect throughout the Michigan economy.

Manufacturing is unique in its ability to create jobs throughout the economy.  It’s estimated that one manufacturing job can create as many as four to five other jobs throughout the rest of the economy.  This “multiplier effect” is one of the strongest arguments for developing and retaining a strong manufacturing base. 

Conversely, the downturn in Michigan, wherein roughly one-third of all manufacturing workers have been laid-off since 2000, has caused serious repercussions throughout the state.

In order to stop this hemorrhaging of U.S. manufacturing jobs, the U.S. must tackle the dumping, subsidies, and currency manipulation practiced by countries like China.  Without a leveling of the playing field, the job losses will continue.

ManufactureThis notes that Hillary Clinton actually addressed the subject of China at a campaign stop in Indiana last Friday.  Specifically, she said: “We will get tough on China, because they are not playing by the rules of the global marketplace.”

In “getting tough,” an important first step is to enforce U.S. trade laws.  Hopefully Senator Clinton understands that action speaks louder than words, and that both Congress and the Administration must promptly address China’s illegal currency manipulation.

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