
James A. Dorn
It is generally understood by Members of Congress, journalists and the public that exports are good for the American economy. They generate revenue, are responsible for a significant portion of U.S. economic growth, and contribute to employment. But what about imports?
China continues to suffer a labor shortage in its key coastal manufacturing regions. This, no doubt, is impacting U.S. and other foreign companies operating in China. But the labor shortage is not due to a lack of available workers. Instead, it is prompted by Chinese government policies, as well as prevailing work and living conditions in affected regions.
China continues to suffer a labor shortage in its key coastal manufacturing regions. This, no doubt, is impacting U.S. and other foreign companies operating in China. But the labor shortage is not due to a lack of available workers. Instead, it is prompted by Chinese government policies, as well as prevailing work and living conditions in affected regions.
Everybody loves exports, and for good reason. The ability of U.S. companies to sell into global markets can boost profits by raising revenue and efficiency through greater economies of scale. But U.S. companies also benefit from the ability to import inputs, including components, commodities and materials, from those same global markets—a point confirmed by a recent study from the St. Louis Federal Reserve Bank.
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