Aim: How are the economies of China and the U.S. joined at the hip? Do Now: In his book, Hot, Flat, and Crowded, the NY Times columnist, Thomas Friedman suggested that it might be good for the U.S. to be China for a day, but not for two? Why do you think he would state this?

I. China for a day (but not for two) Political--top down 1.U.S.--In 1973, started removing lead from gasoline. By 1995 all gasoline sold was unleaded 2.China-Late 2007-announced that by June 08- all supermarkets, stores, and shops banned ultrathin plastics bags. It worked. Second day—if a law is passed or ignored. We have the separation of powers and the power of people to challenge it.

II. Economic Changes 1.Deregulation 2.Capitalism exists in the cities---a lot more corruption than America and Western Europe. 3.Increased middle class 4.Many young and smart Chinese are sticking around. Those 30 and above are in America or Canada-- Engineers, health or Tech!

III. OUTSOURCING 1.MOSTLY LOW PAYING SERVICE JOBS— CUSTOMER SERVICE 2.HIGH-PAYING UNION JOBS-FORD, GM, CHRYSLER, and anything that needs assembling—Tech, cotton, etc…. 3. Not outsourced: health care jobs

IV. Weaknesses with Chinese economy 1.Quality Control-construction of homes, buildings, and toys. 2.Urban sprawl 3.Masses in rural areas remain poor. 4.Growth, Growth, Growth……..

V. Yuan Currency 1. Weakness against major currencies: doesn’t compare US dollar, Euro, or the Yen. 2. Yuan—need to appreciate without destroying the Chinese economy. 3. China buys 700 billion U.S. treasuries so America can fund its budget deficit and recovery. They don’t do it for the interest rate. 4. They hope that its currency will strengthen.