Elizabeth Warren’s New Plan is Calling to Lower the US Dollar
In the most recent economic update, Elizabeth Warren, a Democratic presidential candidate, revealed her plan to create jobs and boost the economy by artificially managing the US dollar.
Her plan was released on Tuesday. According to this plan, managing the US dollar would help domestic manufacturing and export. As manufacturing increases, more jobs will become available. The export would raise US profits, adding to the development of domestic manufacturing.
Donald Trump agrees with the plan. In 2017, he blamed the strength of the US dollar for the US exports dropping. Though the current political events have not been helloing the US economy as well. The trade war with China and new sanctions on Iran have made a big impact on the US economy as well.
Additionally, the US trade war affected the whole world. According to the economic update, the Federal Reserve continuously kept increasing the rates to keep the US the least hurt. It is true that during the biggest global economy setbacks, the dollar has been the safest currency for investors. But Warren considers managing the US dollar to be the healthiest option for the US economy.
According to Warren, foreign investors and central banks have been driving up the US dollar for higher profits. Due to this, American exports have been dropping and the economy was affected gravely.
“If we can aggressively intervene in markets to protect the interests of the wealthy and well-connected — as we have for decades with bailouts and subsidies — then we can damn well use all the tools at our disposal to protect the interests of American workers,” said Warren in her proposal.
Unlike the Japanese Yen, the US dollar is a free-floating currency. The dollar only fluctuates in a defined range. Turning it into a managed currency would make a major change for the market. Since in most of the markets the US dollar is the driving currency, many markets might be expected to suffer major losses.
Other countries will most likely see benefit from the managed US dollar. The foreign economies are expected to stabilize with the dollar opening up new markets for US exports. Warren’s Patriotic Economy plan aims to benefit the US the most but includes other countries as well.
Other Policies Proposed by Elizabeth Warren
Another economic update involves Warren’s other proposed policies. Warren is also calling for replacing the Commerce Department with the Department of Economic Development. The goal is to merge the Patent and Trademark Office, Small Business Administration and undertake the power on export. Additionally, the new department would be in charge of research and development initiatives.
“This new governmental department will have a single goal: creating and defending good American jobs,” said Warren in one of her proposals.
Warren released another policy blueprint, called the “Green Manufacturing Plan”. She is seeking to invest over $2 trillion in the next decade in clean-energy research, domestic manufacturing, and exports. Most of her policies concentrate on working-class Americans.
Her economic proposals have been receiving a lot of attention. Warren is trying to build momentum in the overcrowded field of candidates for the Democratic nomination. Early polls show her behind the former Vice President Joe Biden and Vermont Senator Bernie Sanders.
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