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.
John Deere will lay off or offer early retirement to over 200 workers in Iowa, while at the same time the tractor producer is gearing up to move production of mid-frame skid steer loaders and compact loaders from its plant in Dubuque, Iowa to a proposed new facility in Mexico.
The next president should use every tool to rebuild America’s productivity, industrial base and middle class. And they should ignore the conventional economic textbook view that predicts calamity if those tools are used, especially because these predictions never come true.
The market is in agreement: the dollar is overvalued and will likely remain that way all year.
The April Currency Misalignment Monitor shows that the dollar continues to be heavily overvalued and major Asian currencies remain undervalued.
How can U.S. industry, small and large, compete against countries with much weaker currencies, lower labor and environmental regulatory costs, and the overproduction and dumping that come from Asia?
