US: Getting a grip on false economy

Washington: US president Barack Obama's freshly announced policy to double US exports over the next five years will rely mainly on federal promotional efforts to yield results, rather than wait for China to let its currency appreciate, or lower the value of the dollar.

US Commerce Secretary Gary Locke

Speaking at the National Press Club on Thursday, commerce secretary, Gary Locke, said that the administration would provide a sustained, government-led effort to help American companies take exports past $3 trillion. Such an effort would reverse the Chinese paradigm, where exports are stressed and domestic consumption given the go-by.

Locke said the US government will now seek to temper the economy's reliance on the famed American consumer and instead focus on creating an export-oriented business environment.

"In the past, our economy has been fed by consumer spending based on debt," Locke said after his speech. "But we can't look to consumer debt to drive the economy...And other countries can't, either."

According to Locke, the goal of doubling exports would be "irrespective" of the outcome of currency wars.

Though the policy has been received well by business groups and industry experts, it has attracted a certain amount of scepticism.