“The Coalition for a Prosperous America” releases what it burbles as a “Groundbreaking CPA Study…” entitled “Quantifying Economic Growth and Job Creation from a Competitive Dollar”. Don’t be fooled by all the footnotes and the numbers. At the basis of the analysis is the aphorism: “Neither a borrower nor a lender be”.
Here’s how the email from CPA described the study:
A new study of the US economy fromthe Coalition for a Prosperous America (CPA) economics team shows that the US dollar is overvalued by 27 percent. Adjusting the dollar to a competitive level would yield large benefits to the economy, including an estimated $1 trillion in additional GDP and up to an additional 6.7 million new jobs over six years.
Here’s the basic picture we’re working with:
Figure 1: Real value of US dollar