Yoon 8

Current Events Trimester III. Part 6; Recommendation

Yoon 8

Yoon 8 Table of Contents Introduction ............................................................................................................................4 Body 1 ....................................................................................................................................5 Body 2 ....................................................................................................................................5 Body 3 ....................................................................................................................................6 Body 4 ....................................................................................................................................7 Conclusion .............................................................................................................................7

Yoon 8 Outline I. Introduction

II. Body 1 A. Reason 1 B. Reason 2 III. Body 2 IV. Body 3 V. Body 4 VI. Conclusion

Yoon 8 Dustin Yoon Ms. Papp History 8C 7 May 2011

Current Events Trimester III. Part 6; Recommendations Introduction Thank you for taking the time to read the recommendations for future U.S. foreign policy in this document. It is highly crucial for the future welfare of the United States that our foreign policy decreases our economic dependency on China. The necessity of our foreign policy change rises from multiple factors. The document will go be structured by first presenting the status quo, the current issues that must be resolved, followed by the recommendations for the future. In the past, we not only treated China as a lesser culture, but also showed ignorance and indifference towards Chinas leaders. China proclaimed themselves as a country on October 1st, 1949.1 It was not until the Nixon administration that we had officially recognized them as a country. Previously, our policies towards China were complete ignorance and isolation. Instead, the U.S. first recognized its democratic counter part, Taiwan, adding insult to injury.2 Even after the recognition of China, the U.S still did not consider them as an equal. Furthermore, President Nixons close and much improved relationship with China was not kept during the Bush Administration in 2000-2008; President Bush refused to shake Hu Jin Taos hand at a crucial

"CIA -''The World Factbook''-China. (May 2011) https://www.cia.gov/library/publications/the-worldfactbook/geos/ch.html (Accessed May 8th 2011)
2

"CIA -''The World Factbook''-China. (May 2011) https://www.cia.gov/library/publications/the-worldfactbook/geos/ch.html (Accessed May 8th 2011)

Yoon 8 summit meeting between the G-20 nations. This unequal, two-faced political action by U.S. leaders began the current trend of Chinas continually increasing power. Body 1 China saw its first boost in economy through its economic reform during the mid-80s, when they had started privatizing state-owned industrial sectors, giving incentives to the manufactures, increasing both productivity and quality. At the same time, China started opening itself up to foreign investment and companies adding to their economic boost. This economic boost sped up throughout the 90s and into the late 2000s; now China is very close to taking the #1 place in manufacturing from the U.S. Also, during their economic boom, China continuously purchased U.S. bonds, currently owning 1.1 trillion dollars of U.S. debt.3 Currently, the U.S. has suggested many different options such as raise in taxes, reduction in healthcare and medi-care, and reduction in military spending, but all of these options are being argued between the Democratic and Republican parties has not come to an agreement. Body 2 With this current trend of Chinas increasing power and U.S.s indecisive decision between the two parties, it is certain that there is need for solid plans. First, the need for regaining U.S. economic strength is crucial. The U.Ss economic power is currently decreasing in a rapid manner, while Chinas increasing. This is very problematic because even though our current military strength is superior to Chinas, over time even this power will be reduced due to the countrys lack of budget. To prevent further degradation of U.S. strength and economy, many suggestions have been given from both the Democratic and Republican, but clearly there is too much heated debate between these two sides and no progress has been made, proving that the
3

Major Foreign Holders of Treasury Security (April, 2011) http://www.treasury.gov/resourcecenter/data-chart-center/tic/Documents/mfh.txt (Accessed March 8, 2011)

Yoon 8 current methods have not been successful. A new, effective solution is needed, and must be put into effect right now. Body 3 Currently, around 20% of our budget is put into our military spending,4 which some might think as a needed expense, but a large amount of this expense can be reduced. First, wars over-seas must cease immediately, the wars in the middle east in the past decade has drained approximately 1.2 trillion dollars from U.S. taxpayers;5 Also the U.S. government has issued U.S. Military Aid to various countries in the Middle East including countries such as Israel, Egypt and Iraq, costing the U.S tax payers 36 billion dollars.6 These Military Aids are not necessary, and its obviously weighing down the country and its citizens. Just with these two spending cuts, it is able to take off a huge burden of the taxpayers shoulder and is able to reduce budget spending. While we lower these high budgets spending, we can also use obsolete military technology to lower our current debt. The McDonell Douglas F-15 Eagle, more commonly known as the F-15 is a fine example of obsolete military technology that is still in service with many governments around the world. Even though these F-15s are obsolete, they are still used and costs around 30 million dollars each.7 If we are able to sell off these aircrafts and its technology behind them, we would be able to diminish a huge amount of our current debt. Some might worry that that this might become a threat to national security, but these fighters have already been outdated by its newer, improved models.

"Department of Defense; Budget Spending of 2010". (Dec 2010)

http://www.gpoaccess.gov/usbudget/fy10/pdf/budget/defense.pdf (Accessed May 6, 2011). 5 The Cost of War (May 2011) http://costofwar.com/en/ (Accesed March 10, 2011) 6 U.S. Military Aid Before and After 9/11, by Region (December, 2005) http://projects.publicintegrity.org/militaryaid/regions.aspx (Accessed March 10, 2011) 7 McDonnell Douglas F-15 Streak Eagle (August, 2008) http://www.nationalmuseum.af.mil/factsheets/factsheet.asp?id=621 (Accessed March 8, 2011)

Yoon 8 Body 4 Even though strengthening the U.Ss economy and lowering its debt is the main focus, it is also crucial for the U.S. to slow or stop any further economic improvements of China. While this is not an easy task, it is a possible and a necessary strategic move by the U.S. The best and easiest way of achieving this goal is through lowering our economic dependence on China. In the past decade (2000-2010), we have imported around 219 billion dollars amount of products from China and still increasing.8 On the other hand, our exports to China are much less. This unbalanced trade is not only damaging our economy, but at the same time improving and funding the economic growth of China. There are multiple ways of being able to solve this problem. The first option is to move the to relocate U.S. based-companies manufacturing plants that are currently placed in China to a different country, with a similar or lower wages. But the cost might deter away companies from moving, which is why the U.S. will provide incentives for these countries. We will provide a lower tax rate for the companies that are moving their plants, and possibly even an aid for its cost. Also if these U.S. based companies refuses to move, the taxes can be raised for U.S. based manufactures located in China. This will reduce many jobs in China, slowing down their economic growth. Conclusion In conclusion, due to the ever-increasing power of China and our economy-crippling debt, an immediate solution is needed. With the combination of reduction of the military spending including the end of foreign aid and wars and the move of U.S. based companies out of China, it can increase U.S. economic power, while lowering Chinas.

Wayne M. Morrison "China-U.S. Trade Issues" Congressional Research Service (Jan 2011) http://www.fas.org/sgp/crs/row/RL33536.pdf (Accessed May 6, 2011)

Yoon 8

Yoon 8 References Randall, John E., Gerald R. Allen, and Roger C. Steene. Fishes of the Great Barrier Reef and Coral Sea. Honolulu: U of Hawaii P, 1997.

10