September 30, 2011
I’ve seen a lot of China bashing, blaming China for our trade deficits and how the economy is all China’s fault. What a load of crap. Anyone who has studied Hayek and/or watched Milton Freidman’s videos on economics knows better. It’s OUR fault we have a trade deficit. Our government keeps trying to pick winners and losers through federal legislation and it raises the cost of doing business in the US which raises the cost of our products and makes them less attractive abroad. It also causes our companies to open branches in countries like India where the atmosphere is more conducive to business.
Sorry for the mini-rant. Less government is the answer but business-as-usual legislators don’t have a shared interest in reducing their “control” over the country. Grrr.
Here’s a Cato article on China’s bad currency legislation.