U.S. Sen. Sherrod Brown (D-OH) spoke with reporters Wednesday as he unveiled a new report showing that cracking down on currency manipulation could create 5.8 million jobs in the U.S., including more than 250,000 jobs in Ohio alone.
The lead sponsor of a bipartisan bill that would stand up for American manufacturers by punishing countries, like China, that cheat by manipulating currency, Sen. Brown, who won a second term in 2012, said he will urge Congress and the Obama Administration to crack down on currency manipulation.
Brown’s bipartisan legislation, the Currency Exchange Rate Oversight Reform Act, would use U.S. trade law to counter the economic harm to American manufacturers caused when countries illegally undervalue their currency to give their exports an unfair price advantage. The bill would provide consequences for countries that fail to adopt appropriate policies to eliminate currency misalignment—all without adding a dime to the federal budget.
The new EPI report shows that ending currency manipulation could reduce the U.S. trade deficit by as much as $500 billion within three years, increase GDP by as much as $720 billion, while creating as many as 5.8 million American jobs—all while reducing the federal budget by as much as $266 billion.
Sen. Brown was joined on the call by Scott Paul, President of the Alliance for American Manufacturing; U.S. Rep. Sandy Levin (MI-9); and the author of the new Economic Policy Institute (EPI) report, Dr. Robert Scott, Director of Trade and Manufacturing Policy Research at EPI.
- What would passage of Sen. Brown's bill do for Ohio? According to EPI's report, it would:
- Create more than 250,000 Ohio jobs;
- Reduce Ohio’s unemployment rate by up to 2.7 percentage points;
- Create up to 75,900 Ohio manufacturing jobs;
- Increase Ohio’s Gross Domestic Policy output by up to $17.4 billion; and
- Raise up to $3.7 billion for Ohio and its local communities as output growth leads to increased tax revenues and spending reductions.
Brown reminded reporters that the issue of currency manipulation would not "add a dime" to the deficit. Brown cited China, Japan, Malaysia and Singapore as the leading violators for currency manipulation.
Scott Paul of the AMM said exports could be doubled if bills by Sen. Brown and Rep. Levin are acted on by Congress. He advised President Obama to do the right thing by putting currency manipulation on the table in negotiations with these and other countries. "There is no good reason not to act," Paul said.
Dr. Robert Scott of EPI told reporters on the call that improvement to the U.S. economy could be in the range of $200-500 billion over three years, create 2.3-5.8 million jobs, 40 percent of which would be in manufacturing. The federal deficit, he said, could be reduced by up to $266 billion per year.
Rep. Levin said it appears likely that without currency manipulation being added to the TPP, it probably won't fare well in Congress, where passing any legislation, let alone controversial legislation like TPP, isn't so easy these days. "Currency manipulation must be on the table," he said.
Before heading off to another committee, Sen. Brown, a strong voice for workers and manufacturing, said, "China is watching us closely," adding that it always responds when Congress becomes energized on trade deficit issues. He said a return to 2002 fast-track legislation is unlikely now because, among other reasons, it doesn't work for workers whose wages have stagnated over time.
The news article Sen. Brown touts jobs in Ohio, nation if currency manipulation bills passed appeared first on Columbus Government Examiner.
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