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A clear route to recovery: Exports
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President Obama has smartly suggested that a new export strategy could support 2 million very good American jobs, more than created by his stimulus initiative. The United States already sells about $1.5 trillion worth of goods and services annually to the rest of the world, which creates about 10 million high-paying jobs. Every $1 billion of additional exports will produce about 7,000 very good jobs. Robust export expansion would also reduce our large trade deficits and resultant need to borrow abroad to finance them.
Last week the president suggested an ambitious but realistic goal of doubling exports over the next five years. An effective U.S. export strategy must focus on four variables: the exchange rate of the dollar, trade agreements, our own export controls and tax policy.
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