By Mark Perry
Donald Trump doesn’t like what he calls China’s “currency manipulation.” He outlines his dislike for China’s monetary policy in today’s Wall Street Journal and presents his plan to address that “manipulation” on “day one of a Trump administration.”
I’ve taken the liberty of editing some of Trump’s op-ed to present the opposing and positive side of China’s currency policy, here’s my version:
New Title: “Ending China’s Currency Manipulation Generous Subsidy of American Consumers and Businesses”
New Sub-title: “China’s de facto tariff on imported goods appreciation of the US dollar has cost saved the U.S. billions of dollars and supported millions of jobs.”
Unfortunately, deal-maker extraordinaire Mr. Trump wants China to stop giving us such a good deal, and plans (if elected) to impose new taxes on Americans buying products from China…....Revised Text: Economists estimate that the yuan is undervalued US dollar is overvaluedanywhere from 15% to 40%. Through manipulation of the yuan appreciating the US dollar, the Chinese government has been able to tip the international trade balance in their direction our favor by imposing a de facto tariff on all imported goods selling American consumers and businesses imported Chinese goods at a 15-40% discount. Imagine the favorable impact thesetrade practices and low prices have had on our weakened manufacturing base, our agriculture industry and every small business unable to compete internationally. nation’s consumers, businesses, and manufacturers.
Read the rest here.