- Posted October 7, 2011 by
This iReport is part of an assignment:
The Currency Exchange Rate Oversight Reform Act of 2011
An interesting piece of legislation to be sure. It is designed to correct the trade imbalance with China. it is quite inflationary and will prove costly; yet, it is viatally needed. However, it is but one piece of the puzzle. Without the rest, it will not do much, other than cause hardship. How? Let us review the impact of such legislation
When passed and implemented, it will make goods coming from China more expensive. Those busunesses selling said goods will see a reduction in sales as customers feel the price is too high. This could lead to business failures and layoffs. On the other hand, it will make some businesses here more competive. They will be able to sell more and possibly hire new employees. To actually make this plan work will require additionial financial incentives to relocate industry to America as they become more viable from the consequences of this new law. And, we can expect China to retaliate in some way as well.
What does everyone else think about this legislation?