Stop Currency Manipulation and Create Millions of Jobs

http://www.epi.org/publication/stop-currency-manipulation-and-create-millions-of-jobs/

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This paper describes the positive effects of ending currency manipulation in three years by estimating the effects of reducing trade deficits on GDP, jobs, the federal budget deficit, and state and local budget deficits in 2015. This study is the first to estimate the job impacts of trade for the congressional districts served by the current 113th Congress, using new congressional districts based on the 2010 Census. Our research shows:

Eliminating currency manipulation would reduce the U.S. trade deficit by $200 billion in three years under a “low-impact” scenario and $500 billion under a “high-impact scenario.” This would increase annual U.S. GDP by between $288 billion and $720 billion (between 2.0 percent and 4.9 percent).

The reduction of U.S. trade deficits and expansion of U.S. GDP would create 2.3 million to 5.8 million jobs, reducing the U.S. jobs deficit by between 28.8 percent and 72.5 percent.

About 40 percent of the jobs gained would be in manufacturing, which would gain between 891,500 and 2,337,300 jobs. Agriculture would also gain 246,800 to 486,100 jobs, heavily affecting some rural areas.

Reducing trade deficits by eliminating currency manipulation would cost the federal government nothing; in fact, increased tax revenues and reduced safety net expenditures would reduce federal budget deficits by between $107 billion and $266 billion in 2015 (34.4 percent to 86.1 percent), and net state and local resources would increase by between $40 billion and $101 billion.