A bipartisan bill to increase the competitiveness of American exports through currency realignment will purportedly help boost the overall farm economy. Introduced by Senators Tammy Baldwin (D-WI) and Josh Hawley (R-MO), the Competitive Dollar for Jobs and Prosperity Act calls for the Federal Reserve to put a “market asset charge” on foreign purchases of U.S. stocks, bonds,
“We need reforms that create a competitive American dollar and an even playing field for manufacturers, farmers and workers. This bipartisan fix will increase American exports and boost our manufacturing and farming economy,” said Senator Baldwin.
The legislation is being supported by groups such as the National Farmers Union (NFU), and the National Association of Pipe Fabricators, as well as the Coalition for a Prosperous America (CPA) which is comprised of a coalition of farmers, ranchers, manufacturers, and organized labor.
“The overvalued U.S. dollar puts American family farmers and ranchers on an uneven playing field with the rest of the world,” said NFU President Roger Johnson. “If the U.S. dollar were realigned, our agricultural exports would be more competitive on the world market. Increased demand for these goods would drive up the price—a necessary change that would have far-reaching effects for agricultural communities.”
According to CPA, currency realignment has the potential to add close to $1 trillion to America’s GDP, creating more than five million new American jobs. The legislation could also raise over $2 trillion in tax revenue over the span of six years. Lowering the inflated value of the U.S. dollar also creates the opportunity for market demand to grow, thus increasing prices paid to American farmers and ranchers.
“This legislation creates a powerful new tool to fight back against foreign currency manipulators, encourage investment in American jobs, and make our exports more competitive around the world. Our farmers deserve a chance to earn a fair profit on their crops,” said Senator Hawley.