“Of course unions support causing the dollar fall relative to China’s currency, but it’s a good idea anyway. It might solve our imbalance of trade without having to resort to tariffs.”
I do not think relatively small movements of the dollar will have any impact on trade. It seems inevitable that the RMB will rise against all major currencies especially the dollar. Large movements will bring inflation. Unions will place onerous demands on US businesses so I do not see movement of jobs back here. More likely, production will be moved to other low cost production areas.
“I do not think relatively small movements of the dollar will have any impact on trade”
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.
This article by Andy Grove (founder of Intel) is sort of related to our topic: