Impact of the Dollar on U.S. Competitiveness: Hearing Before the Subcommittee on Economic Goals and Intergovernmental Policy of the Joint Economic Committee, Congress of the United States, Ninety-ninth Congress, First Session, March 12, 1985
United States. Congress. Joint Economic Committee. Subcommittee on Economic Goals and Intergovernmental Policy
U.S. Government Printing Office, 1985 - Balance of trade - 65 pages
What people are saying - Write a review
We haven't found any reviews in the usual places.
Other editions - View all
abroad advantage American approximately average basis billion Brinner California capital CD CD compared competitive competitors Congress corporate cost cost of funds countries Data deficit dollar domestic effects equipment example exchange rate Exhibit exports Federal fiscal policies foreign future give given global going greater growth hearing higher impact imports incentives income increase industries inflation interest interest rates investment Italy Japan Japanese Jefferson Joint Economic Committee less levels look loss lost lower major manufacturing market share measure monetary policy nearly OECD output percent period plant present problem Products profits programs raised rates recession recovery reduce relative rise savings sector Senator Bentsen Senator Proxmire spending statement stimulus strength strong subcommittee surplus tax credit trade deficit trading partners U.S. competitiveness United Vice Chairman
Page 12 - In the years following World War II, the United States developed a dominant share of world trade.
Page 16 - But our manufactured goods have also tended to become commodities in the sense that they must be increasingly sold on the basis of price alone, rather than on the basis of distinctive quality or technical superiority. Even in our own domestic market, a remarkable image change has occurred vis-a-vis Japanese goods: the American consumer frequently associates "made in Japan" with sophistication in engineering and finish, and "made in America
Page 20 - A strong dollar is good if it is justified by the productivity of the nation. A currency with a relatively high value allows the United States to import goods more cheaply and provides a direct benefit to the consumer. But if the dollar is priced so high that producers cannot manufacture comparable goods at comparable cost, then jobs will be lost.
Page 9 - The state of being bound emotionally or intellectually to a course of action or to another person or persons. 1. The act of competing, as for profit or a prize; rivalry. 2. A test of skill or ability; a contest: a skating competition. 3. Rivalry between two or more businesses striving for the same customer or market.
Page 39 - US attempts a transition toward greater fiscal restraint, our trading partners should be encouraged to shift moderately toward stimulus in taxation, expenditure, and financial policies. The best global configuration would be a net shift toward fiscal restraint and a simultaneous net shift toward greater liquidity. The former would expand the global supply of savings; the latter would cut the costs of funds and support final demand to encourage the private investment demand for these funds.
Page 35 - The major thrusts of deficit reduction should come through lower growth in the entitlement programs such as Social Security, a reduction in the inflation-indexation of the personal income tax, and a hard-nosed look at the defense budget in areas such as retirement benefits. Reductions in these indicated expenditure and transfer programs and higher personal taxes will increase the national savings and investment pool: for every dollar the deficit is reduced through such steps and...
Page 13 - The first message from the data is that we are no longer dominant in global markets. Market share has fallen to near parity with Germany and Japan, countries with gross national products only one-quarter to one-third the size of the United States. In the competition for global sales, the US share* of adjusted total exports by major industrial nations fell from 28...
Page 33 - High interest rates have a doubly negative effect on American competitiveness; they strengthen the dollar in foreign exchange markets and make US goods less competitive; they also reduce American investment, which is absolutely necessary to maintain the quality of our goods and the productivity of our workers. American fiscal and monetary policies must be very carefully adjusted to enhance investment and future growth Exhibit 20 Persistent Federal Deficits Imply Scarce Long-term Funds 10-yeğr Current...
Page 2 - In summary, given our natural resources, the United States is not nearly as competitive internationally as it has been in the past or could be today. Our position is handicapped by the overvalued dollar, inadequate capital formation, and insufficient bargaining pressure on our trading partners to grant reciprocal access to their markets and technologies.