Job creation is the top concern of the Obama administration and Congressional Democrats. The several million lost jobs and millions more underemployed are creating real hardship for the affected, and imperiling Democrat election prospects in 2010 and 2012. Imagine, then, that China has to create 15 million jobs a year to keep pace with its graduates and those moving from the countryside to cities. And, for the most part, it has succeeded.
It would be good for the U.S. dollar to lose its reserve currency status. The U.S. is able to issue debt in its own currency. If it could not, because others did not accept the dollar as their official foreign exchange reserves, it would be harder and more costly to issue public debt. The higher cost of debt would have the salutary effect of making it more difficult to run large budget deficits and pile up a massive national debt that future generations will have to repay.