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Strong Dollar is good for Small Businesses

Politics / US Dollar Jul 16, 2019 - 09:40 AM GMT

By: BATR

Politics

The Trump economy has provided a much needed optimism. While confidence for the future has grown over the meager performance under Obama, the fabric of prosperity has not yet achieved universal reach. Remember that an America First economy thrives on a strong dollar. So it is unfortunate that the establishment is pushing President Trump into favoring an internationalist trading system that hinders a domestic small business economy. The corporatists on Wall Street hate independent business.

In order to combat the export of American jobs, much higher tariffs should be imposed. Raising the value of the U.S. Dollar (Federal Reserve notes) would put an end to the oversea search for the cheapest labor regime. International trade that diminishes domestic output has been the primary cause of destroying our national autonomy. For those who are in denial, admitting this fact is a major threat to their cartel of global interdependency.


What a big mistake when Trump reportedly asked aides to find a way to weaken the dollar.     

"Trump has grown increasingly frustrated with the strength of the dollar as his administration pursues its signature "America First" agenda, levying punitive duties on major trading partners. Economists said the dollar has strengthened in part because of policies such as the $1.5 trillion tax-cut package that was passed in 2017."

This assessment from Markets Insider shows just how confused the main stream business media is about the true nature of an American First policy. A Merchantry based wealth creation structure would spread the legitimate profits of commerce among small business owners and local employees. Read the Seeking Alpha article, Small Caps Love A Strong Dollar, "What many don't realize is that a strong dollar helps far more companies than it hurts, especially among smaller producers."

Another approach is put forth by Jim Daws in The American Thinker essay, What to Do about the Strong Dollar.

"One proposal to address the artificially strong dollar is the Competitive Dollar for Jobs and Prosperity Act, advocated by the Coalition for a Prosperous America.  The CPA represents manufacturers, agriculture, and labor to rebuild the economic health of Middle America that's been hit so hard by decades of globalism. 

The bill would amend the Federal Reserve Act to add a mandate to achieve a balance of trade to its current mandates of full employment and low inflation.  It would create an exchange rate management tool for the Fed called a Market Access Charge, to be levied on foreign purchases of American securities, in order to adjust the strength of the dollar.  The MAC would be collected by the Treasury and would be moved up or down to gradually to achieve a trade-balancing exchange rate within five years.  The legislation would also authorize the Fed to retaliate against nations that manipulate their currencies to gain trade advantages."

A careful assessment indicates that granting additional powers to the private Federal Reserve does little to rebuild a domestic manufacturing economy. At the core of a 'Make America Great Again' is a revival of high paying domestic jobs much like the manner that Henry Ford paid his workers a living wage so that they could afford buying the cars they produced. The only way to eliminate the trade deficit is to close the door on imports that undercut goods and merchandise made in the USA.

All the screams from the dishonest "Free Traders" who originated the detrimental shortfalls, caused much of the rise in all the red ink. Back before Donald Trump was elected President, Steven Hansen wrote the article, A Strong Dollar Is Mostly Good For The U.S., So Is Middle Class Economics.

"America has become too dependent on government and big business for employment. Small business is the engine of middle class economics. The existing regulations make it very hard for a middle class person to start and run a business. Gallup stated:

Because we have misdiagnosed the cause and effect of economic growth, we have misdiagnosed the cause and effect of job creation. To get back on track, we need to quit pinning everything on innovation, and we need to start focusing on the almighty entrepreneurs and business builders.

If the politicos are correct that tax relief and deregulation are the answers for Middle Class Economics, focus them entirely on small business so we are somewhat assured the benefits go into the correct pocket."

The rigged game of Wall Street is designed to keep small business SMALL. Raising capital to actually start an enterprise or expand a successful venture has long ago been transplanted by facilitating the export of a domestic developed business into a global multinational that thrives on tax evasion.

Add to this money-lender scheme of finance with currency manipulation and you get a controlled domestic economy. Put in place an automatic increase in tariffs when a foreign country devalues their own currency. Develop a balance in real values for trade, which protects our own companies that employs our American neighbors.

Concluding up quite nicely, Andrew Moran notes in A Weak Dollar Won’t Make America Great Again.

"Considering that half the country lives paycheck to paycheck, wages have not kept up with the cost of living, and the consumer price index (CPI) has topped 2%, Americans have received foreign aid in the form of discounted goods.

An inferior dollar would only apply added upward pressure on domestic prices. With signals that price inflation is beginning to ramp up, it is crucial the administration dumps the idea of debasing the dollar. Even using it as a trade negotiating chip is a foolish idea, especially with reports that the Chinese government is considering stopping or slowing down its purchases of U.S. debt.

Moreover, the dollar hegemony in international markets is being threatened. The likes of China, Russia, and Germany are all starting to make room for other currencies. If the greenback is losing its global prestige, then what incentive would Beijing or Moscow have to reverse their new monetary attitudes?

A country cannot be made great again by destroying its currency. The U.S. dollar already shed about 10% of its value in 2017. The president must resist the temptation of eroding it any further. Otherwise, he risks hurting the economy, the federal government’s finances, and the well-being of Americans."

Small business needs the protection of high tariffs and the purchasing power of a strong dollar. President Trump must not listen to the globalists and avoid the internationalism of the Deep State.

SARTRE

Discuss or comment about this essay on the BATR Forum

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Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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