Why Would Trump Want a Weaker Dollar? January 2017
Jobs, Make America great again, trade wars with China. Trump is a leader with economic plans. Trump based on his statements is a believer in “fair free trade”. He’s said over and over again that he’s a “free trader” but he’s also stated that he believes in Free trade that is fair. That being said Trump has stated that he would have no problem starting a trade war with China. Trump is a believer that China is cheating which China is cheating however what Trump has opted to ignore is why U.S companies choose to leave the U.S in the first place.
The U.S job market is over regulated, not only is it over regulated but it’s bloated and expensive to do business in. Expensive in the way that costs to do business are too high. Now if the concept of minimum wages and workers unions didn’t exist in America, I’d be all for Trump but I think he’s confused his subjective America with the reality of the country. This is where I’m eager to see what he’s going to do when faced with opposition. The best thing for America at this time is a stronger dollar, yet if the Chinese Yuan appreciates in value the market sees this a novelty. What Trump sees however is China forcing itself to change policies. I get Trumps concept the problem however will be the American workers. if American workers were simply robots that you could tell what to do sure in theory what Trumps saying makes a lot of sense.
But how will Trump respond when faced by workers unions, and other groups when they demand higher wages, or more job security. The main problem with Trumps proposals lie in minimum wage laws. This is really the advantage the third world countries have over the U.S. It may seem like it’s currency manipulation but the truth is the problem is REGULATION. As I’m writing this in January 2017 I have a hard time visualising how Trump will deal with regulation which is an Internal problem within America. I’m not doubting Trumps abilities, I’m just questioning them. Because before he starts to do anything he’s going to have to fix the internal problems within Washington. If Trump takes the external approach to fixing America’s problems in my opinion he’s going to set himself up for economic embarrassment.
To answer the question why would trump want a weaker dollar?
Trump believes that China and other countries are “currency manipulators” My view is currency manipulation is NOT the problem OVER REGULATION within America is the problem and if Trump doesn’t deal with this problem FIRST he’s going to create an economic house of cards for the American people. It’s odd but I’ve always thought Trump was the perfect candidate to help fuel libertarianism I would hope Rand and Ron Paul take the time to point out the flaws in Donald Trump’s plans. Interesting times ahead!