Raymond Richman - Jesse Richman - Howard Richman
Richmans' Trade and Taxes Blog
Seven Options for Tackling Trade with China
In a June 23 commentary (Five Options for Tackling Trade with China), Bloomberg Businessweek's Economics Editor Peter Coy laid out five options for tackling trade with China. He included two options that would be effective:
He also discussed three options that don't work:
Meanwhile, he ignored both of our balanced trade proposals:
He dismissed each of the effective options by claiming that Krugman's proposal would violate WTO rules, even though it would not, and that Fletcher's proposal would "undermine America's claim to leadership of the global trading system." He completely missed the special WTO rule for trade deficit countries that all of the effective proposals are based upon (see How Import Certificates could balance Trade and Budget).
Peter Coy has done a service by laying out several of the options. Unfortunately, he thinks that America's leadership position in the world depends upon our being an advocate for economic suicide. America could regain its leadership position by becoming a growing economy as an advocate of balanced trade.
Journal of Economic Literature:
Atlantic Economic Journal: