Posted by: changholt | January 30, 2010

Obama and US exports

If you had a chance to watch the state of the union the other night President Obama slipped in a very vague announcement on how he is going to create 2 million jobs by increasing exports. International business is not his strongest skill set so I am interested in seeing how he can implement this ambitious goal.

The quote:
“Third, we need to export more of our goods. Because the more products we make and sell to other countries, the more jobs we support right here in America. So tonight, we set a new goal: We will double our exports over the next five years, an increase that will support 2 million jobs in America. To help meet this goal, we’re launching a national export initiative that will help farmers and small businesses increase their exports and reform export controls consistent with national security,” Obama said.

How can the President effect international trade? First, he needs to make sure he does NOT start a trade war like he did with tires last year. Second, he is pretty limited in the executive branch to effect foreign trade. His best asset is encouraging other developing economies, such as China and the ASEAN countries, to let their currencies float or simply re-value their undervalued currencies. This simple change alone could make increase US exports.

In the end, he stated that he would create a National Export Initiative focused on helping small businesses sell their goods overseas. As with all politics the details are still being “worked out”. How these get worked out is the key. According to the American Free Press, a lot of work needs to be done if the U.S. want to keep its title as third largest exporter. Idea is good… but unlikely to create 2 million real jobs.


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