From The Heritage Foundation and AEI:
International Trade/Finance
Why We Should Thank the Chinese Currency Manipulators
by Mark J. Perry
American Enterprise Institute
December 05, 2011
China’s currency manipulation is a form of foreign aid, and to the direct advantage of millions of U.S. consumers, especially low-income groups, and to the direct advantage of thousands of American companies buying inputs from China. Forcing China to revalue its currency would benefit some American manufacturers competing with China, but would significantly harm those American consumers and businesses currently buying undervalued imports. On net, there would be more harm to American consumers than benefits to American manufacturers, which would reduce our overall standard of living. We should be thankful for China’s foreign aid to Americans through an undervalued yuan, overvalued dollar, and undervalued goods that collectively save American consumers and companies billions of dollars every year.
URL: www.american.com/archive/2011/december/why-we-should-thank-the-chinese-currency-manipulators
International Trade/Finance
Why We Should Thank the Chinese Currency Manipulators
by Mark J. Perry
American Enterprise Institute
December 05, 2011
China’s currency manipulation is a form of foreign aid, and to the direct advantage of millions of U.S. consumers, especially low-income groups, and to the direct advantage of thousands of American companies buying inputs from China. Forcing China to revalue its currency would benefit some American manufacturers competing with China, but would significantly harm those American consumers and businesses currently buying undervalued imports. On net, there would be more harm to American consumers than benefits to American manufacturers, which would reduce our overall standard of living. We should be thankful for China’s foreign aid to Americans through an undervalued yuan, overvalued dollar, and undervalued goods that collectively save American consumers and companies billions of dollars every year.
URL: www.american.com/archive/2011/december/why-we-should-thank-the-chinese-currency-manipulators
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