“If foreign-produced goods become more expensive in America, isn’t that going to stimulate domestic manufacturing? The loss of manufacturing jobs here in America has been a tragedy of the last several decades.”
Andy Grove is calling for a trade war. I do not want a trade war.
The idea that the currency is causing the trade imbalance is misguided. Currency may be a factor but only one factor. We have so many issues with competitiveness. The issues have gotten much worse with rat control. The rats are trying to give the unions much more power. The rats have passed many laws that increase production and employment costs. The rats have other proposed laws (such as the Equal Pay Act) that will be a yoke around employment and production in this country.
The currency will be changed regardless of action here. China wants to increase the value of its currency over time although perhaps not in the short term. We need to focus on our competitiveness issues.
A trade war, when your country’s production output sucks, is a *BAD* idea.