Wall Street Journal Reports: U.S. Trade Deficit with China Grew at Record Level

Wall Street Journal Reports: U.S. Trade Deficit with China Grew at Record Level

Joe Blasts Congressman Toomey for Policies that Benefit Foreign Corporations

MIDDLETOWN, Pa. – U.S. Senate candidate Joe Sestak said today that Pennsylvanians must demand action to help correct the growing trade imbalance with countries like China that lead to the loss in American businesses and jobs.

”We need to focus on creating jobs and supporting the small businesses that will be the engine of our economy, in Pennsylvania and across the country,” Joe told employees at HydroWorx. “But for too many businesses – especially manufacturers – and too many working families, the future remains uncertain. My top priority is creating jobs and putting Pennsylvanians back to work.”

As the Wall Street Journal reported yesterday, the U.S. trade deficit has ballooned as a result of record number of Chinese imports. Congressman Toomey opposes bipartisan legislation aimed at correcting this trade imbalance, placing him in radical opposition to every U.S. House member from Pennsylvania.

Admiral Sestak – whose has worked to retain and extend jobs here in the United States while voting to close offshore tax loopholes that allow corporations to ship jobs overseas – cosponsored and voted for the bill but said more must be done to correct the trade imbalance. 

“As long as China is allowed to manipulate its currency, we will continue to shed jobs in Pennsylvania. Rather than take a stand against China, Congressman Toomey wants us to be grateful for foreign subsidies that cost American workers their jobs and force manufacturing plants to close across the Commonwealth,” said Joe. “If we’re going to create jobs here at home, we need to force countries like China to play by the rules, and invest in small businesses, where the majority of Pennsylvanians work.” 

According to the Wall Street Journal, “The U.S. trade deficit with China grew to $28.04 billion from $25.92 billion in July. Imports from China grew 6.1 percent to a record $35.29 billion. Meanwhile, exports fell $92 million to $7.25 billion.” [Wall Street Journal, 10/14/10]

The U.S. trade deficit with nations like China “acted as a big drag on the economy in the second of the year, as imports outpaced exports. Trade subtracted 3.5 percentage points from growth April through June, when U.S. gross domestic product increased by 1.7 percent.” [Wall Street Journal, 10/14/10]

According to the nonpartisan Economic Policy Institute, Pennsylvania lost 95,700 jobs from 2001 to 2008 as a result of the growing trade deficit with China and those jobs have not been replaced: “Jobs displaced by the growing China trade deficit are a net drain on employment in trade-related industries, especially those in the manufacturing sector. Even if increases in demand in other sectors absorb all the workers displaced by trade (an unlikely event), it is likely that job quality will suffer, as many non-traded industries such as retail trade and home health care pay lower wages and have less-comprehensive benefits than traded-goods industries.” [Robert E. Scott, “Unfair China Trade Costs Local Jobs,” Economic Policy Institute, 3/23/10]

Congressman Toomey opposes a bill that would help prevent countries like China from manipulating their currency in order to flood the U.S. market with cheaper goods, placing American workers and companies at an unfair disadvantage. The bill, which Joe co-sponsored, passed the U.S. House of Representatives last week in an overwhelmingly bipartisan manner, 348-79. [Associated Press, 10/7/10]

In his 2009 book, Toomey said, “Foreign subsidies should be seen for what they are: Gifts to American consumers at the expense of foreign taxpayers…Certainly, substantial foreign subsidies…would result in fewer American cars sold, and consequently fewer American auto workers.” [The Road to Prosperity, © 2009, p. 112-113].

Toomey Puts Big Corporate and Wall Street Interests in China Ahead of American Jobs

In his 2009 book, The Road to Prosperity, Toomey explained his belief that the United States has an “unfortunate tendency” to use “buy American language” in legislation.  [The Road to Prosperity, © 2009, p. 211]

According to the Morning Call, Congressman Toomey wants a regulatory system more like Hong Kong: “I was seeing pretty close up which economies were succeeding and which ones weren’t, and there is an unmistakable correlation,” Toomey said. “Those that are heavily regulated and centrally controlled underperform. And those like Hong Kong, where there is regulation but it is sensible, they thrive.” [Allentown Morning Call, 9/26/10]

It has been reported that foreign corporations are illegally pouring money into Pennsylvania on behalf of Congressman Toomey. The Chamber of Commerce uses tax loopholes to avoid disclosing contributions from foreign corporations. The New York Times wrote that “[b]ecause the United States Chamber is organized as a 501(c)(6) business league under the federal tax code, it does not have to disclose its donors, so the full extent of foreign influence on its political agenda is unknown. But Tuesday’s report sheds light on how it raises money abroad. Its affiliate in Abu Dhabi, for example, the American Chamber of Commerce, says it has more than 450 corporate and individual members in the United Arab Emirates who pay as much as $8,500 a year to join.” [New York Times, 10/5/10]

October 18th, 2010 | Posted in Front Page Stories | No Comments