Reserve Currency Status Benefits US Institutions, Not Regular Folk: Prestowitz

Paul Greaney
By Paul Greaney
September 19, 2022Fresh Look America
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Clyde Prestowitz is the founder and president of the Economic Strategy Institute, a former counselor to the secretary of commerce in the Reagan administration, and the author of “The World Turned Upside Down: America, China, and the Struggle for Global Leadership.”

He says the enhanced Russia–China alliance could lead to unexpected benefits for the American people—at least in an economic sense. The U.S. dollar is the world’s reserve currency, and while that benefits American institutions, it doesn’t do a whole lot for the American worker, according to Prestowitz.

If Russia and China forge ahead with a parallel economic system, sans greenback, that could weaken the dollar’s global standing. And while that may force Congress to trim its budget, it could make America a more competitive manufacturing hub.

Prestovitz explained his views to NTD at the 2022 National Conservatism conference.

“[Having reserve currency status] benefits the financial institutions of the United States. It does nothing for the average guy. And it does nothing for the underlying infrastructure.”

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