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Research Professor Ralph Gomory Testifies at US-China Hearing

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it is time to realize that the interests of our global corporations and the interests of our country have diverged

On June 15, 2011, Research Professor Ralph Gomory testified before the US-China Economic and Security Review Commission’s hearing on “China’s Five-Year Plan, Indigenous Innovation and Technology Transfers, and Outsourcing.”

Professor Gomory described the rapid economic growth of China, which has led to an increase in imports of Chinese goods, a decrease in the US’ productive capability and a significant trade imbalance. This has been accompanied by improved corporate profits and downward pressure on wages and employment levels.

“While the inflow of cheaper consumer goods has been a benefit,” Professor Gomory asserted, “that benefit has come at too high a price.” Professor Gomory argued that the natural profit interests of US global corporations cause them to strongly support these developments. “Therefore it is time to realize that the interests of our global corporations and the interests of our country have diverged.”

In conclusion, Professor Gomory called for new policies to better align the goals of US corporations with the needs of the American people.

Read Professors Gomory’s full remarks