Economists Slam Trump For Saying He Can Bring Jobs Back from China

August 14th, 2015

The world is watching a New York Billionaire take on seasoned politicians, and at this point in time Donald Trump is winning that battle. Most professional politicians say Trump’s position as the number one Republican candidate won’t last because he just doesn’t have a policy agenda in place that makes sense. Economists think Trump is smart, but being smart doesn’t necessarily mean he knows what he is talking about when it comes to current economic trends. Trump’s statement that he is going to bring back millions of jobs to America is grossly overstated, according to economists that follow his incessant ability to quote from the book of Trumpisms.

Donald Trump has a lot of self-confidence, but that characteristic is no match for the economic forces that sent those jobs to China and other countries, according to economists like Christian Broda, the former Professor of Economics at the University of Chicago and managing director of Duquesne Capital Management. Broda spends a lot of time studying and writing about the global economy, and he says the United States has lost more than 5 million jobs since 2000. Broda also says about 2.4 million of those jobs went to China. Trump thinks he can bring those jobs back, but Broda and other economists like Princeton University economist and former Federal Reserve Vice Chairman Alan Blinder say that’s not going to happen. Both men along with others keep a close watch on the offshoring of American jobs.

The main reason Trump is blowing smoke is, most of those jobs are low-skilled jobs. American workers are paid too much to do those jobs. Chinese workers are paid about $1 hour. But the China wage is still too high to compete with countries like Vietnam and Bangladesh, so China is losing manufacturing jobs as well. If the United States tried to block foreign-made products, most consumers would not be able to buy the American made versions of those products. Plus is the U.S. did block imports from low-wage countries, those countries would block American exports.

What Trump is not telling the voting public is technology has taken away a lot of those manufacturing jobs. The U.S. could not, and would not, want to hire workers to do the job of computers and robots. It just doesn’t make good financial sense.

Some economists think Trump and the other candidates should focus on things that will improve competitiveness in the United States. Things like roads, airports, and schools. Broda and others say American workers should be educated and retrained to perform other jobs because the ones that gone are not coming back.

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