Tonight's Debate: What Talking Points Affect Your Business?
It's worth noting that some sources, such as the Financial Times and the Washington Post, claim that China's currency manipulation has dropped off and is beginning to correct itself, making it a practical non-issue for the U.S. Others, like the New York Times, state that while China's currency situation under Obama has improved, said improvement has recently halted as China's economy slows down.
Where the candidates stand: Romney appears the more aggressive of the two candidates on China's currency manipulation. As quoted in the New York Times:
"On Day 1, I will label China a currency manipulator, which will allow me as president to be able to put in place, if necessary, tariffs where I believe that they are taking unfair advantage of our manufacturers," he said.
Tariffs could counteract the advantage China's has been gaining from its low currency, but are also not necessarily a perfect solution. China could create counter-tariffs on American exports to China. According to the Financial Times, American exports to China account for about $108 billion in American goods and services, 800,000 jobs and have grown by 541 percent over the last 10 years. Tariffs on China would also not prevent other countries from artificially deflating their currency and simply shifting the low-cost manufacturing problem to a different location.
The New York Times reports that under Obama, the value of China's renminbi has grown at least 8.5 percent, to a value of 15.9 cents compared to the U.S. dollar. Obama does have some tariffs on China-made goods, such as solar panels, though overall he does not seem to favor protective tariffs, inside opting to adjust exchange rates based on inflation at the consumer level between the two countries.
Beyond the issues of currency and tariffs, I don't see a lot of opportunities for the debate to head toward business (beyond the classic political move of "answer a question with something totally unrelated to just shift the conversation toward that anyway"). I suppose oil prices and defense spending could always come up, which are both issues that can impact the promotional industry (oil being needed for shipping and plastics, defense companies like Lockheed Martin being I assume meaningful purchasers of promotional products), but I don't really know enough about those topics to comment intelligently, so I'm just not going to say anything. (I don't expect either of those topics to come up in any depth, so the point is probably moot anyway.)