Want Jobs? Kill Currency Manipulation, Get Manufacturing Plan

Forcing China to play fair and stop its currency manipulation tricks coupled with developing national manufacturing plan will bring the nation's global trade balance into surplus territory, generating U.S. jobs and bringing U.S. factories back to their former glory, concludes a recent Economic Policy Institute research brief.  

 

"Global currency manipulation is one of the most important causes of growing U.S. trade deficits, and of unemployment and slow economic growth in the United States and Europe. Currency manipulation distorts international trade flows by artificially lowering the cost of U.S. imports and raising the cost of U.S. exports. This leads to goods trade deficits that displace U.S. jobs, particularly in the manufacturing sector," EPI observes. 

 

The think tank estimates that eliminating our nation's blood-sucking trade deficit would generate up to 5 million new jobs but it would also require some foresight from our nation's leaders and investment. 

 

Terminating currency manipulation, one of the main causes of the soaring U.S. trade deficit would cut the U.S. unemployment rate by up to 2.1 percentage points, cut the deficit by up to $166 billion and boost the GDP by up to almost $500 billion.

 

But it's not enough all by itself. To close this deficit, the nation needs a comprehensive manufacturing strategy much the way other advanced nations have in place.

 

"The United States should follow the lead of other advanced economies and create a world-class environment to support domestic manufacturing in the United States. This will require careful planning and substantial investments, but the potential rewards are great. 

 

If the nation fails to invest in its manufacturing base, a "full decade of high unemployment and massive losses of actual and potential output" could follow, the EPI warns.

 

Also, it wouldn't hurt at all to step up pressure upon our leaders to pull out of Trans-Pacific Partnership negotiations. Stand up for jobs and tell Congress and the White House no!

 

Read the EPI's entire brief: http://bit.ly/V6JuwC.