Cheap Products vs. a Higher Employment Rate The American economy is finally recovering after the recent recession. The United States endured several years of high unemployment combined with a nasty housing market collapse. The 7.3 percent unemployment rate in October 2013 is still considered high. However, it is significantly lower than the 10 percent it peaked at in 2009. During this recession, the war cry was, “Buy American! Support local jobs!” However, the struggle between purchasing American items at a higher price versus foreign products a lower price was a common one. This problem created several questions from the American public. Should the government be putting restrictions on cheaper goods imported into the U.S. in order to save jobs? Or should they encourage importation so that people can continue to afford products? The answer might be surprising to some. Limiting importation would hurt the United States economy more than it would help. In 2012 the United States imported $2.334 trillion worth of imported products. This number was up 7.8 percent from 2008. Oil and machinery topped the list, clocking in at over 33 percent of total imports. China imported the most goods, at 19 percent. America’s largest retailer, Wal-mart, imported $235 billion worth of goods in 2006. The effect this had on American employment was colossal. Over 1.8million jobs were eliminated between 2001 and 2006. Unfortunately this is typical of American businesses. They will import to receive a cheaper price, therefore eliminating jobs in the American workforce. However, importation isn’t always a bad thing.
The U.S. participates in free trade, “or the flow of goods and services over borders unhindered by government-imposed restrictions.” (Steiner, 410) Free trade works because it allows countries to specialize in what they can produce the most efficiently. This allows them to