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Higher Costs Are Not a Source of Prosperity

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Here’s a letter to The Economic Times:

The U.S. Treasury is jawboning Beijing to raise the price of the renminbi relative to that of the U.S. dollar (“Chinese currency significantly undervalued: US report [2],” Oct. 16) …. which is to say that the U.S. government is pleading with Beijing to force Chinese producers to raise the prices they charge for the goods they sell to Americans.

Gee whiz, if ever I had cause to doubt what I learned from my high-school civics teacher about the glories of American democracy, I might start to suspect that Uncle Sam sometimes pursues policies that make ordinary Americans poorer.

Donald J. Boudreaux
Professor of Economics
Martha and Nelson Getchell Chair for the Study of Free Market Capitalism at the Mercatus Center
George Mason University
Fairfax, VA  22030