The United States has gone through the worst recession since 1930s with the stock market loss of 6.9 trillion US dollars. By the end of 2008, the economic downturn has brought about 2.6 million job loss, pushing the unemployment rate to 7%. In the past Christmas season, sales was 2% less than that of the same period in 2007.
Newly-elected President Barack Obama has just won House approval for a USD 819 billion economic recovery plan to pull the United States out of recession and lay the foundation for long term economic growth..This stimulus plan seeks to spur the job creations. With this plan, Obama expected that his plan will create 3 million jobs vacancies for Americans by 2011. Lots of money will be spent on domestic infrastructure including rebuilding the nation's crumbling schools, bridges, roads and waterways. The construction work will offer job opportunities, and this plan will spur demand for building materials, which may put mill workers back to work.
How will this stimulus plan affect China? The main material needed for infrastructure is steel. Although steel purchased overseas is much cheaper, the materials for the development will be required to purchase from domestic market or the whole stimulus plan will be meaningless. As the world's largest exporter of steel products, China will be faced with the situation that the foreign demand of steel is dropping. Many factories may have to shut down.
Apart from the stimulus package which will have huge impact on China, Obama is expected to take tough stance in other aspects. As early as the presidential election started, Obama has been criticizing China’s currency polices and demanded that Yuan should rise up.
He recently accused China of “manipulating” its currency-yuan, which shocked the whole world as the word “manipulate” is politically sensitive. As a matter of fact, the yuan has strengthened against the dollar since 2005.
From around eight yuan to the dollar in 2005, it traded at around 6.8 in mid 2008 and has stayed stable ever since. This rise of Yuan has pushed up the cost of Chinese exports overseas, and increased the export from the U.S to China.
Obama’s demand for yuan’s going up will not be acceptable by China, and is expected to lead conflicts in trading between the two countries.
1 Which one is false? A.The United States has gone through the worst recession since 1930s B.By the end of 2008, the economic downturn has brought about 2.6 million job loss C.In the past Christmas season, sales was 2% less than that of the same period in 2007
D.The stock market has lost 6.9 billion US dollars.
2 What does Obama expect from the stimulus plan? A.To create 3 million jobs vacancies for Americans by 2011. B.To help China’s export C.To create more jobs for workers around the world. D.To support Chinese currency rate
3 How will the stimulus plan affect China? A.Chinese steel factories may be in difficult situation due to the foreign demand drops B.China will benefit from this plan C.All the Chinese factories will be shut down D.More products will be exported to the U.S from China
4 What does Obama hope about the Chinese currency Yuan A.Chinese Yuan rise up B.Chinese Yuan go down C.the exchange rate between Chinese Yuan against USD remain the same D.He has no comments on Chinese currency rate
思考問題： 1 What do you think of Obama’s being elected as American President? 2 If you were a President of a country, what would you do to help your people go through the financial crisis?
要答: MC, 思考問題. 謝謝!