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The following article was published in our article directory on November 26, 2010.
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The United States to Solve the Employment Should not be Passed on By the Crisis

Article Category: Business

Author Name: Amanda xzh

Recently, the U.S. media on Obama's recent trip to Asia was inventory. For this to "expand U.S. exports, create employment opportunities for the country" for the purpose of the visit, many media are considered to be "mixed success and disappointment." Obama in India worth 10 billion U.S. dollars signed a trade agreement, this is successful; failed to South Korea and South Korea signed a free trade agreement, this is disappointing. Can see that Obama hopes to enhance the employability of more lies in the increase in exports, and the U.S. public opinion on this attention.

Earlier this year, Obama proposed the idea of 5 years to double exports, which exports from 2009 to 1.57 trillion U.S. dollars in 2015 to 3.14 trillion U.S. dollars. Then, the White House developed a "double exit plan" formed a "Cabinet of export promotion", covering all the major U.S. economic sectors and foreign sectors. Not long ago, the "export promotion Cabinet," released "," National Export Strategy "report to the president," Obama's exports doubled in the next 5 years to provide comprehensive and detailed strategic recommendations, this report is the U.S. government to promote national export strategy important step.

In the policy stimulus, the U.S. exports this year is fine. U.S. Department of Commerce data show that from January to August this year, U.S. exports have increased 18%, of which the increase in exports of goods and achieved 22%. Recovery in the U.S. for the past four quarters, the contribution of exports to economic growth is greater than 1%, exceeding the consumption and investment.

U.S. starts the "export multiplier scheme" not only hopes to stimulate economic growth, but also expect it to improve employment. In accordance with the "export multiplier scheme" target of an additional 200 million jobs, but the situation is not satisfactory. United States is still close to double-digit unemployment rate, with almost the same period of the crisis seriously. From the current U.S. export growth in all sectors of the economy situation, the fastest growing agricultural products, but this increase is largely due to the recent price increases caused by the agricultural, promotion of employment a negligible role. More importantly, the rapid growth of exports may not be a moment that the next 5 years can maintain rapid growth, after all, growth over the past few quarters post-crisis economic recovery factors.

If the United States to an additional 200 million jobs, we must focus on increasing manufacturing exports. Characteristics of the economic structure from the U.S. perspective, of every three jobs in the manufacturing sector have a direct export-related, the ratio is much higher than agriculture and services. But rather the manufacturing sector, the industrial structure in the United States does not dominate the global market in the U.S. manufacturing sector's overall competitiveness has also been declining.

There are two U.S. industries related to manufacturing exports has obvious advantages, namely, weapons and high-tech products. But as long as the world's major wars do not occur, the export of weapons and equipment would be difficult to increase substantially. U.S. high-tech exports has been limited, it will not double the target for export deregulation.

The next 5 years, the United States will take credit support, tariff negotiations and other means to promote the "export multiplier plan" to achieve. It now appears that these measures, the effect is limited. The rest of the stimulus is probably the depreciation of the dollar, and by currency depreciation to improve the competitiveness of export products, secretly helped the "export multiplier scheme" to complete, to ensure that the increase of employment. Zhe Shirang world worst fears.

The recently concluded Group of Twenty finance ministers and central bank governors do not play by the "currency war" a joint communique, the Seoul summit made clear once again developed and emerging market countries, the principle of cooperation on the exchange rate in order to avoid competitive currency depreciation. The international community now needs, through joint efforts, prompted the U.S. to comply with these consensus has been reached to change the way the crisis passed. Devote great efforts to adjust the economic structure of the United States is the right way, by the depreciation of the dollar to boost exports, increase employment, this road is now very difficult to go through.

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