The U.S. dollar is the world’s reserve currency and America is the world’s biggest consumer. Other countries whose economies are centered on exports rely heavily on America’s consumption. Therefore, a falling dollar is an issue many countries cannot afford to ignore. Further devaluation of the dollar is sure to come. The near-inevitable move would set up a frantic race to the bottom among world currencies and the ramifications are serious for everyone.
The U.S. Constitution states that all treaties made under the authority of the United States become supreme law of the land. When our government stymied under pressure from foreign-represented lobbyists and signed the WTO treaty the government effectively sold away our sovereignty.
American manufacturing is in desperate need of help. In the long run it needs a comprehensive strategy that includes infrastructure improvements, investment in education, and most importantly trade reform, but there are actions our country could take in the short term as well.
The wealth of the United States was largely achieved during the 20th century through the development of our industrial base. Our manufacturing industry has been eroded and rebuilt overseas, motivated by our domestic and foreign policies that did nothing to maintain America’s manufacturing capabilities. Free trade is meant to provide a mutual advantage between the two trading parties. When one country is better at production in one particular sector, and the other party is better in another, the two benefit from trade.
Free trade has become the unjustifiable status quo that has devastated American industries and American jobs. In 2007, then-Senator Barack Obama said to a group in New York, “[l]ike all of you, I believe in free trade, but we have to acknowledge that for millions of Americans, its burdens have been outweighing its benefits.”This quote sums up the position free trade has all too often been given in our society. It is propped up as something that should be beneficial while the facts point in the other direction.
Trade Reform The Economic Collapse Blog
