CPA believes an overvalued dollar makes American goods and services less competitive in global markets. The Competitive Dollar for Jobs and Prosperity Act will create good jobs, rebalance trade and rebuild American prosperity.
Persistent U.S. dollar overvaluation fuels much of America’s global trade deficit by raising the price of U.S. goods and services in global markets. While the United States has an array of fiscal and monetary tools to manage its internal economy, it lacks effective exchange rate management tools to manage trade flows that have a powerful effect on the domestic economy.
For this reason, CPA advocates for The Competitive Dollar For Jobs And Prosperity Act, introduced by Senator Baldwin & Senator Hawley. This bill tasks the Federal Reserve with achieving and maintaining a current account balancing price for the dollar within five years.
CPA will be working closely with President-Elect Trump’s team to craft policies that will make a lasting impact on U.S. trade and industrial policy.
The U.S. dollar remains at about the same worldwide valuation in our latest quarterly Misalignment Monitor, continuing to create a double-digit import incentive to the great disadvantage of domestic U.S. producers.
In January, CPA called on the Biden administration to reject misguided calls to revoke the non-market economy status of the Socialist Republic of Vietnam — a nation where the economy remains highly controlled by the government.
We need to protect our industrial base, invest in infrastructure, and sell more in our wealthy home market. A twenty-first-century version of the American System isn’t just desirable—it’s essential.
USD Overvaluation affecting U.S. trade with the world by $364 billion, compared to only a $30 billion effect from current tariffs. Currency misalignment also has a larger effect in more heavily tariffed countries, such as China.
When asked about China, both Trump and Biden should say that China’s trade surplus is an insult to the world and a huge disruptor to our economy.
