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Stop Currency Manipulation and Create Millions of Jobs

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Stop Currency Manipulation and Create Millions of Jobs

With Gains across States and Congressional Districts

EPI,

5 min read
5 take-aways
Audio & text

What's inside?

Ending currency manipulation could add millions of US jobs and improve the American economy.

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Editorial Rating

7

Qualities

  • Controversial
  • Comprehensive
  • Scientific

Recommendation

Economist Robert E. Scott of the Economic Policy Institute, a liberal think tank, argues that unchecked currency manipulation by trading partners like China and Switzerland cuts US employment and raises its trade deficit. He offers several ideas – some controversial – to redress foreign exchange rate imbalances. Whatever your economic leanings, Scott’s well-researched and comprehensive look at the cost of currency manipulation will add to your understanding of a politically and economically complex issue. While always politically neutral, getAbstract suggests this alternative analysis to economists, executives and policy makers.

Summary

The exchange rate manipulations of 20 nations – including China and Switzerland – have cost the US millions of jobs and widened its trade deficit. By ending currency manipulation, the US could cut its trade deficit by $200 billion to $500 billion in three years and create 2.3 million to 5.8 million jobs, 40% of them in manufacturing. The boost in economic activity would raise government tax revenues, lower benefits spending, trim the federal budget deficit, and provide US states with between $40 billion and $101 billion in resources.

Currency manipulation “distorts trade flows by...

About the Author

Robert E. Scott heads trade and manufacturing policy research at the Economic Policy Institute.

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