Labor & Employment Law

Stopping Currency Manipulation Would Create U.S. Jobs

By James Parks

Leveling the playing field by enforcing our trade laws against  currency manipulation is a no-cost action that will create jobs, AFL-CIO President Richard Trumka said today.

He called on Congress to pass the bipartisan Currency Reform for Fair Trade Act of 2011. Introduced by Sens. Sherrod Brown (D-Ohio) and Olympia Snowe (R-Maine) and Reps. Sander Levin (D-Mich.), Tim Murphy (R-Pa.) and Tim Ryan (D-Ohio), it is same legislation passed by the U.S. House of Representatives last September by a 348-79 margin.

The bill gives the U.S. Treasury Department more tools to enforce rules against currency manipulation byour trading partners. The Chinese government keeps its currency low, which artificially reduces the prices of its exports, creates a huge trade deficit for the United States and costs millions of American jobs.  Trumka said China?s actions create a worldwide domino effect, encouraging other governments to engage in the same behavior.

 In a statement, Trumka said:

Economists from across the spectrum agree that currency manipulation distorts trade and exacerbates our unsustainable trade deficits. Putting an end to currency manipulation is an issue that unites business and labor, farmers and ranchers and Republicans and Democrats. Action by our government to put an end to this destructive illegal activity is long overdue.

You can read Trumka?s full statement here.

Full post as published by AFL-CIO NOW BLOG on February 10, 2011 (boomark / email).