End Currency Manipulation, Create Jobs
March 5, 2014
Politicians talk a lot about jobs, but there is one surefire way Congress can help create millions of jobs according to a new report from the Economic Policy Institute: crack down on currency manipulation.
Many nations artificially peg their currency much lower than their real value, most notably China. That makes U.S. manufactured goods uncompetitive compared with other nations on the global market while driving down prices for imports, adding billions to our trade deficit.
Report author Robert Scott says that eliminating currency manipulation by 20 countries would reduce the U.S. trade deficit by between $200 billion and $500 billion, creating upwards of 5 million new jobs. About 40 percent of those would be in manufacturing.
“There are a number of steps that President Obama can take to end currency manipulation,” Scott said.
Scott finds that ending currency manipulation would create new jobs in nearly every congressional district in the nation.
Currently, there is bipartisan legislation (H.R. 1276 and S. 1114) in both houses of Congress that proposes to enact some of Scott’s suggestions.
Click here to read the EPI report.