US Pressure on China is Misguided ( by Adam Kritzer): The US continues to pressure China to revalue the Yuan, but to no avail. Politicians spew protectionist rhetoric and cite the millions of jobs ‘lost’ to China because of its artificially cheap currency. Not all Americans, however, are pushing for revaluation. One think tank has observed that most of the pressure and propaganda originates from powerful lobbying groups, which represent American businesses losing market share to Chinese firms. Unfortunately, American consumers are not represented by equally powerful lobbying groups, which could potentially extol the virtues of an artificially cheap Yuan, which keeps prices low and inflation in check. Perhaps, after the Yuan is revalued and prices begin to rise (at Wal-Mart), politicians will recognize the fallacies in their politics.
June 4, 2005
China’s Yuan Currency and America’s Corporate LobbiesPosted by DHH under Politics and World Affairs
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