In his State of the Union Address President Obama said that, as part of his plans to “create jobs” his focus was going to be on increasing exports. Of course our exporting industries cannot sell anything that foreign consumers aren’t willing to buy. So how do we insure that products made in the US are competitive in foreign markets? Well it appears that Obama’s plan is to continue the Fed’s inflationary weak dollar policy, a policy that the he endorsed by reappointing Ben Bernanke as Fed Chair. The weaker the dollar is against foreign currencies, the cheaper US goods are in foreign markets. It is in essence a subsidy to foreign consumers paid for with a tax on American consumers. This is because the weaker dollar makes imports, and therefore the American made products that compete with them, more expensive to Americans. It lowers the cost of living for foreigners and raises the cost of living for Americans. American producers could truly become more competitive internationally by increasing the efficiency of production. But this is obviously not what the president has in mind. In fact most of what he has done and proposes to do will dramatically increase the cost of production in the US–this includes the cap and trade tax, the government takeover of health insurance, and increased unionization through card check. The Obama/Bernanke weak dollar policy may increase imports but only by imposing a hidden tax on American consumers and, in the long run, by reducing the real competitiveness of American industry.