Promoting Trade Without Mentioning Currency Values:WSJ Wins Journalistic Incompetence Medal

The WSJ is shooting for a Pulitzer for journalistic incompetence. It ran a piece discussing the Obama administration's efforts to boost the economy with increased exports and never once mentioned the value of the dollar. The value of the dollar is the main determinant of the price of U.S. exports in other countries. If the dollar falls in value, the price of U.S. exports declines measured in the currency of other countries.

It is hard to understand how the WSJ could run a piece discussing exports without ever mentioning currency values. This would be like General Electric planning its model line without ever considering the prices it charges for its products.

Perhaps this analogy is not too far from reality. The article concludes with an exhortation for increasing exports from GE CEO Jeffrey Immelt. Immelt is cited as saying that exports constitute 7 percent of U.S. GDP. Actually, the U.S. exports almost 11 percent of its GDP, a figure that is 50 percent higher.

--Dean Baker