Re-evaluating Chinese currency remains a bad idea
WHAT IT MEANS AND WHY IT’S IMPORTANT Herbert Hoover is alive and well — and picking up his prescriptions at the local drug store.
(THE NEWS: Retailers urge Congress to reject Chinese currency legislation. For the full story, click here.)
Of course, he isn’t. But if he were, he might have some advice to offer current members of Congress and occupants of the White House based on his experience with the Smoot-Hawley Tariff Act of 1930, which attempted to rescue the U.S. economy by imposing tariffs on imported goods, but instead ignited a trade war that many historians blame for deepening the Great Depression.
The legislation to impose tariffs on Chinese imports as a way to force it to revalue the yuan is based on the assumption that China manipulates its currency to make its manufactured goods more competitive in the U.S. market. Thus, the reasoning goes, if China were to revalue the yuan, it would help American manufacturers by making Chinese imports more expensive and American goods more competitive in China, thereby helping to ease the U.S.-China trade deficit, which totaled $226.9 billion last year and has so far reached more than $145 billion this year, according to U.S. Census data.
But it’s not that simple. In 1930, the United States manufactured most of its own consumer goods; but that’s no longer true, and the bulk of consumer goods, from toys to digital cameras, now come from China. Also frequently lost in the melee is the fact that most of the supposedly Chinese goods are not Chinese at all, but rather products with American, Japanese, Korean and European brands that are assembled in China. Unlike in the 1970s and 1980s, when such Japanese companies as Sony were eating the lunch of such American counterparts as General Electric, the “Made in China” label now graces the products of both.
For that reason, if legislators imposed big tariffs on Chinese goods or if China dramatically revalued the yuan, it would simply force retailers to pass the extra costs to consumers. So after picking up his prescriptions, Hoover would find the digital camera he had planned to buy from behind the counter noticeably more expensive. While this would not likely lead to another Great Depression, it would certainly diminish consumers’ purchasing power.
As for the manufacturing jobs, many experts have said they would simply migrate to cheaper countries rather than returning to the United States. This trend already is under way in textiles, as many clothing companies have started moving factories from China to such countries as Bangladesh in response to the increasing costs of manufacturing in China.
Fresh & Easy develops line for kids
SAN DIEGO Fresh & Easy is promoting its new line of products aimed at childhood nutrition.
The line, fresh&easy Goodness, is made using such wholesome, natural foods as whole grains, fruits and vegetables, as well as other foods that are good sources of vitamins and minerals. Fresh&easy Goodness products also contain no artificial colors, flavors or preservatives, no added trans fats and no high-fructose corn syrup.
"We fundamentally believe every family deserves access to fresh, wholesome food at affordable prices," said Fresh & Easy CEO Tim Mason. "Everything we do derives from listening to our customers, and one thing we’ve heard consistently from parents is that they are looking for ways to feed their children high-quality, nutritious foods without stretching their budgets. Fresh&easy Goodness for kids offers an affordable and convenient solution for busy parents that won’t break the bank."
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NCPA supports drug disposal bills, makes approval recommendations
ALEXANDRIA, Va. A group representing the nation’s independent pharmacies heralded two pieces of legislation that pertain to the safe disposal of prescription drugs.
The National Community Pharmacists Association announced its support of legislative efforts made by the House of Representatives and the Senate, which passed their respective drug disposal bills Wednesday and last month. NCPA also added that it was “a giant step forward to allow for controlled substances, which had previously been precluded from any disposal programs, to be included.”
The lobbying group did, however, express concern that neither bill passed by the legislative bodies will provide liability protections for participating pharmacies nor adequate funding mechanisms or grant programs to assist in the cost of responsible collection. These concerns were conveyed to the House prior to the vote, NCPA said.
“Independent community pharmacists are uniquely positioned to help Americans get rid of expired and unused prescription drugs,” said Joseph Harmison, NCPA president and pharmacy owner. “That’s why over 1,000 member pharmacies are now engaged in a successful drug disposal programs with Sharps Compliance Inc.”
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