The Myth That Weak Exports Are Caused By A Strong Dollar

The Dollar is not strong, so why make arguments based on that falsehood?

“Baker: "The reason that the United States consistently runs large trade deficits is that its currency is overvalued."

The currency cannot be adjusted and then become some magic wand that makes trade deficits vanish. Here's an analogy. Imagine if Florida and Michigan had their own separate currencies. Could Michigan debase its currency and steal a large share of the orange market away from Florida? No, because Michigan could not deliver a supply of oranges from their soil and climate. No amount of currency trickery could change Michigan's supply problem.

America once had a 'soil' that could produce not only enough consumer goods for her own population, but goods that were competitive in overseas markets. No more. First America lost overseas markets, then America lost its ability to supply itself ( all by design, of course, thanks to the hijacking of our government by parties who think internationally, not nationally ).

How do we we back out of this trap? First, our internal supply chain must be rebuilt, so Americans have a choice between homegrown and imports. Then, American consumers must unlearn all the lies they were told about globalization and relearn the principle of 'buy American, put Americans to work, build America'. Then, if we have the patience to retrace our steps back out of the folly of fake free trade and make a new marriage between the US consumer and the US manufacturer, only then will it be time to worry about how much we export.