Indiana was among the top 10-hardest hit states due to China’s entry into the World Trade Organization, a move that caused a displacement of production that otherwise would have remained in the United States, according to a report issued by the Economic Policy Institute in Washington D.C.

Indiana lost 45,200 jobs, or 1.5 percent of the state’s total employment, the report said. The U.S. trade deficit with China between 1997 and 2006 displaced production that could have supported 2.17 million U.S. jobs. Contrary to the predictions of its supporters, China’s entry into the World Trade Organization (WTO) has failed to reduce its trade surplus with the United States or increase overall U.S. employment.

Major findings of this study include:

  • The 1.8 million jobs opportunities lost nationwide since 2001 are distributed among all 50 states and the District of Columbia, with the biggest losers, in numeric terms: California (-269,300), Texas (-136,900), New York (-105,900), Illinois (-79,900), Pennsylvania (-78,200), North Carolina (-77,200), Florida (-71,900), Ohio (-66,100), Georgia (-60,400), and Massachusetts (-59,300) (Table 2A).
  • The 10 hardest-hit states, as a share of total state employment, are: New Hampshire (-13,000, -2.1%), North Carolina (-77,200, -2.0%), California (-269,300, -1.8%), Massachusetts (-59,300, -1.8%), Rhode Island (-8,400, -1.8%), South Carolina (-29,200, -1.6%), Vermont (-4,900, -1.6%), Oregon (-25,700, -1.6%), Indiana (-45,200, -1.5%), and Georgia (-60,400, -1.5%).

Support for China’s entry into the WTO and Normal Trade Relations (NTR) status in the US comes basically from the business community who see the large population of over a billion as more consumers to buy and consume products. An equally enticing possibility is the enormous source of cheap labor that global corporations can exploit. However, American businesses exhibit little concern about how the Chinese population would benefit; their concern lies with how China as a cheap source of labor would benefit American businesses—not even American people.

China’s entry into the WTO has further tilted the international economic playing field against domestic workers and firms, and in favor of multinational companies (MNCs) from the United States and other countries. China’s state-owned and privately-owned exporters also benefit from WTO status. This has increased the global “race to the bottom” in wages and environmental quality and caused the closing of thousands of U.S. factories, decimating employment in a wide range of communities, states, and entire regions of the United States.

Beijing air on a day after rain and a sunny but polluted day

When was the last time you turned over an item in Menards, Target, Wal-Mart or any other big box stores or small shops and found a product that said “Made in the USA?”




About Charlotte A. Weybright

I own a home in the historical West Central Neighborhood of Fort Wayne, Indiana. I have four grown sons and nine grandchildren - four grandsons and five granddaughters. I love to work on my home, and I enjoy crafts of all types. But, most of all, I enjoy being involved in political and community issues.
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