EPI report says we could create 5.8 million new jobs and not cost the taxpayer a dime
Wouldn’t it be cool if there was one thing the United States could do that would lead to the creation of millions of jobs?
Yes. That would be super cool. Your friends at the Alliance for American Manufacturing (AAM) think so. In fact, we think it would be beyond cool – it would be amazing, the kind of thing worth taking to the streets over, or screaming from rooftops.
Well, get your taking-to-the-streets shoes on, gentle reader:
The United States could create up to 5.8 million jobs within 3 years if it acted to end currency manipulation. http://t.co/5sVK09yGZg— Economic Policy Inst (@EconomicPolicy) February 26, 2014
That's right. The Economic Policy Institute (EPI) has the thing. End currency manipulation, and create millions of jobs.
It's that simple.
As Americans, we’re inclined to assume that if there is a simple solution to a major problem, our legislators would have taken action. But at the risk of causing you undue disappointment (or years of political jadedness) we’re going to level with you. It really is that simple.
Ending currency manipulation would cost exactly $0 to the taxpayer, and would create jobs in every state and nearly every congressional district.
The report’s author, economist Robert Scott, joined a call today with Senator Sherrod Brown (D-OH), Representative Sander Levin (D-MI), and AAM President Scott Paul to discuss the benefits of stopping currency manipulation (You can listen to that call here).
Paul called stopping currency manipulation the “most important job-creating opportunity for manufacturing.” Both elected officials on the call echoed this sentiment.
Brown and Levin both also discussed the importance of ending currency manipulation to reducing America’s trade deficit.
And while Brown commented that United States Trade Representative Michael Froman is not as responsive as he needs to be on the subject, Levin mentioned the importance of addressing currency manipulation in the Trans-Pacific Partnership.
So, how important is stopping currency manipulation? The EPI report suggests that by realigning exchange rates U.S. trade deficits would be reduced by up to $500 billion per year by 2015 and could:
- Increase U.S. GDP by up to $720 billion per year (a 4.9 percent increase);
- Support creation of up to 5.8 million jobs (a 4.1 percent increase)
- Increase manufacturing jobs by up to 2,337,300 jobs (a 15.9 percent increase)
So what can we do?
We’ll just assume, by now, that you’re a believer. So the next question is, how do we make this happen?
President Obama can do it on his own. He can declare China a currency manipulator and given his talk about making this a Year of Action, this would be a great action to take.
But, let’s assume he’s not going to do that (it’s a safe assumption, as he probably would have done it already): Congress can take action. In fact, there are currently bills in both the House and the Senate that, if passed, would effectively label China a currency manipulator. The obstacle here is getting them passed.
That’s where you come in. You want to see more jobs in the United States, right? You want to see our trade deficit with China shrink? And, maybe most importantly, you want to walk into a store and find “Made in America” labels on the stuff you buy?
We thought so. So please use the links here to urge your representatives and senators to stand up to China’s currency manipulation.
Fixing currency manipulation is a big deal. And the only way we're going to get it done is by holding Washington's feet to the fire.
Image by Flickr user jurvetson, used following Creative Commons guidelines.
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