The united states should take action against China for manipulating its currency

This is a precarious position, Though it doesn't appear I'm essentially arguing status quo. Without knowing what kind of action the Affirmative wants to take, I will argue that any action that the federal government could take would do more harm than good.Definitions:United states: United states Federal GovernmentAction: the bringing about of an alteration by force Manipulating: to change by artful or unfair means currency: money, contextually as the RenminbiInherency The U.S. has a mutually beneficial trade relationship with The People's Republic of China. In a global economy, such as that of the United States, a division of labor that spans the globe is not only favorable; Its necessary. American companies compete in a global market for their goods. Though some jobs have left America, It would be a mistake to look at the growing exports of china and assume that placing 'tariffs' on them would bring those jobs back. In a time of economic downturn, with unemployment hovering at 8.5%, the temptation for policy makers to blame another country for its economic woes is tempting. It is fashionable to openly talk about china as the sinister threat looming overseas waiting to take YOUR job. Indeed it has found a captive audience in blue collar America. They rally behind the simple proposition of "If Congress just did 'X' we could wrangle our precious jobs back from china once and for all" I'm reminded of the words of H.L. Mencken "For every complex problem, there is a solution that is simple, neat, and wrong". following to the bitter end with that logic, U.S. law makers have proposed taking actions against china for keeping its currency artificially low. They argue that the hand of the Chinese governments have given their (Chinese)businesses unfair advantages, and those advantages are not allowing American companies compete fairly in the global market. Since both countries are members of the World Trade Organization(WTO) Allegations of tampering with currency would carry severe economic consequences against the violator in question. These same lawmakers have called for a tax on Chinese imports to make up for the 'subsidies' the government gives. Such attempts are misguided Moving to label China as a currency manipulator would force the United Sates to accept the same title This house concedes that china has manipulated its currency. So has the United States. Since the crash in 2008 the Federal Reserve has expanded its balance sheet from $870 billion in December 2007 to $2.65 trillion in April 6, 2011(1). The federal reserve did this in two rounds of 'quantitative easing' whereby they purchase outstanding U.S. debt. It takes a second to sink in that is is essentially introducing new money into the supply. Chairman Burnanke had a host of reasons for doing this, and this debate will not concern itself with disputing those, but it serves as an observation that the united states has also manipulated its currency. China holds $800 billion of U.S. debt, it scares the bejesus out of them to see the dollar devalued.(2)Since both countries are members of the WTO and their membership requires them to justify actions against with the organization, Any case brought to the WTO regarding china's manipulation would be met with case against the united states for its currency manipulation. If the United States can justify an action towards china to the WTO, then china can certainly justify an action against the United states with the same audience. This would hurt the United States greatly. Seemingly the only benefit of going down that avenue would be to impose a tax that would compensate for the distortion of the Renminbi. I Have just shown logically what would follow if such action was undertaken. The backlash would be a similar tax placed against American products not just in china, but worldwide. The harms of this are self evident. But lets go down the yellow brick for debate sake, Lets say that the action could be observed without a response from other nations. Policy in vacuum. The motivation behind such a policy is inspired by the idea that American jobs would flock back to America, that without this handicap America manufacturing would be able to rise to its once great height, subduing its communist competitors, and consumers would rush to buy American products leaving Chinese gathering dust on the shelf. As I said, these attempts are misguided.For one, A rise in the renmenibi would hurt American companies and force Americans to pay more for the same products. Lets dispel what the notion that Chinese exports are replacing American products. Case in point: The iphone.The iphone is the quintessential product to examine, What could be more American? The iphone is assembled in china and arrives on American docks with the price of $179 . The pro would see that and lament over the $179 that left American wallets and into the pockets of our competitors overseas. The truth is a bit more complex. The iphone is assembled in china for sure, but its components are imported from other countries: Japan, Korea, Germany. Of the entire cost of the iphone, the cost spent to assemble it in china is $6.50. however the entire amount $179 is calculated into our trade deficit. The Bogey man looks allot less scary up close. The $6.50 that china keeps is the pot of gold at this end of the rainbow the pro pursues. One would think policy makers would look to take away the jobs of the Germans, who manufacture the GPS system and rake in a much more generous take, rather than look to the horrible factories that Foxconn operates(the ones where conditions are so bad workers are threatening a mass suicide) with envy of what could be. The rise of the Remenibi would elevate the cost of Chinese goods in America. If American and Chinese products compete something like this would seem welcomed, except that they don't. For most of the goods bought that are made in china there is little American substitute. The things we import from china in great numbers are things that American consumers buy: "T-shirts, sneakers, and plastic toys — things that we were importing from other countries long before China's rise as a supplier"(3) A rise in the price of these goods will hit millions of Americans, mostly the poor, as their Real spending power decreases. The shareholders of apple don't see are extra dollar in profit, nor do any of the companies involved in making the iphone, and most importantly the customer pays more! Made in china is dubious "Stanford University economist Lawrence Lau found that Chinese value-added accounted for about 37% of the total value of U.S. imports from China. (5) The case that Chinese companies are benefiting from currency that so do American companies. On a net benifits scale any action the Federal Goverment could take would be more harmful than good to America. There is mountains more of things here, but atlas the coffee has run out and I'm nearing the end of my shift at work. I am interested in to see where the Pro takes the case. It is with modesty I submit my contentions, you have the floor (If there is something about the source/citations i could clear up i'd be happy to just leave a comment, I think i got them all) 1.http://www.marketwatch.com... 2.http://www.cato.org... (under 'Less Provocative Alternatives') 4.http://www.readwriteweb.com...5.http://www.cato.org...6.http://www.cato.org...;