Opinion
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EDITORIAL
Published on October 14, 2010
American politicians using China and India as scapegoats for job losses are playing a dangerous and divisive game
Political spin with a short-term focus can leave the public mired in misinformation. Unfortunately, US politicians are trying to capitalise on ordinary Americans' anxiety over an unemployment rate of 9.6 per cent by scapegoating China and India as the cause of job losses.
The tactic is designed to connect with Americans during the mid-term elections, as economic recession tops the list of the country's concerns. However, the misleading election propaganda could create misunderstandings with the US's trading partners, especially those in Asia, which is being portrayed as the villain.
Over the past few weeks, a series of political ads on television has singled out China and India for costing America jobs. For instance, Zack Space, the Democrat Congressman for Ohio, who describes himself as "standing up against a Chinese government that has devastated American workers", accuses his Republican opponent of supporting free-trade policies that have caused a loss of US jobs to China. Earlier this year, Bill Halter lost a Democrat primary in Arkansas after his rival's TV ad featured South Asians thanking Halter for sending jobs to India.
Political messages like these can leave a negative impression among American's trading partners. The attacks on Chinese workers are counterproductive to the American attempt to pressure Beijing to re-value the yuan and thereby reduce the price-competitiveness of Chinese products. India's government recently expressed its disagreement with the US decision to raise the visa fee for Indian workers in the US. None of this bodes well for the US's effort to double its exports in the next five years to create some 2 million new jobs at home.
In short, such political misinformation will not improve the US economic situation. Jobs in India and China outsourced by the US may not be adversely affected by such sentiments, as their number is likely being exaggerated by the politicians.
More importantly, these messages foster anti-foreigner sentiment among ordinary Americans at a time when they are suffering from the recession. They can easily buy into the belief that they are entitled to vent their anger towards "outsiders". But blaming outsiders is no solution for a society that promotes the harmonious co-existence of people from different races. Minorities among America's rich mix of different ethnic backgrounds could in turn become scapegoats in a hostile atmosphere of blame.
Like anywhere else in the world, less competitive companies and industries in the US will find it difficult to survive. As such, American workers deserve better solutions from their politicians, such as new retraining programmes, rather than being given a caricature of workers overseas stealing American jobs.
The fact is that the motivation of several multinational companies for relocating their plants overseas has not been to capitalise on cheap labour but rather to penetrate foreign markets. Japanese and American automakers have set up assembly plants in Thailand mainly so as to sell their vehicles in Thailand and Southeast Asia.
American politicians should also make their constituents aware of the realities of global trade. Americans need to be reminded that they are also benefiting from this intertwined business environment, as cheap imports to the US benefit consumers, boost domestic consumption and curb inflation.
Many foreign companies have also made their presence felt in the US and created jobs for the locals. For instance, India-based pipe producer Welspun recently decided to expand its operation in Little Rock, Arkansas. Meanwhile, Wal-Mart stores in China contribute to the performance of its headquarters in the US.
Instead of looking for scapegoats, US politicians should be focussing on real solutions to their employment problems - for instance, working with other countries for a successful conclusion to the Doha Round of global trade talks. And instead of accusing each other of being too sympathetic to China or India, and promoting a hostile environment of confrontation, Republicans and Democrats should instead urge their constituents to learn more about people from different backgrounds. As the Chinese proverb says, "If you know your enemies and know yourself, you will win every battle."
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October 14, 2010 09:57 am (Thai local time)
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