How Currency Manipulation Creates American Jobs

The chart above shows (data here) that more than 53.2% of all U.S. imported goods are: a) industrial supplies (chemicals, commodities, raw materials, etc.), and b) capital goods (machinery, equipment, parts, tools, etc.) which are being purchased by AMERICAN COMPANIES as inputs for production in the United States. Being able to purchase Chinese and other foreign inputs at the lowest possible price makes American companies MORE competitive, sell MORE of their products, and hire MORE American workers. Therefore, to the extent that American companies buy their inputs from China, one could argue that China’s currency “manipulation” of appreciating the U.S. dollar helps American companies and actually SAVES and CREATES jobs in America.

About Mark J. Perry 262 Articles

Affiliation: University of Michigan

Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan.

He holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University in Washington, D.C. and an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota.

Since 1997, Professor Perry has been a member of the Board of Scholars for the Mackinac Center for Public Policy, a nonpartisan research and public policy institute in Michigan.

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