Japanese Currency Manipulation Threatens U.S. Jobs (Rep. Joe Knollenberg)

I was surprised this week by Secretary Paulson’s lack of concern about the loss of manufacturing jobs in America and the Industrial Midwest. Michigan has lost nearly 200,000 manufacturing jobs in recent years. Japan’s currency manipulation is a major reason the American auto industry has been forced to cut jobs in states like Michigan, Ohio, Wisconsin and Missouri.

Since 2001, Japan has spent nearly $400 billion to weaken the yen. This massive intervention in currency markets provides Japanese automakers like Toyota with a $4,000 to $15,000 per vehicle subsidy on vehicles exported to America. Secretary Paulson has turned a blind eye to the serious issue of Japan’s currency manipulation. Currency manipulation has nothing to do with free trade. It’s cheating. It’s wrong. And it’s costing America a lot of automotive and manufacturing jobs. It’s time for government leaders in Washington to stand up for American manufacturing. This is a critical economic issue for the entire country, but especially the Industrial Midwest.