Greenspan speaks out against anti-Chinese protection
By Alex Singleton | 24 June 2005
From Yahoo! Finance:
Federal Reserve Chairman Alan Greenspan warned Congress on Thursday not to rush to impose punitive tariffs on imports from China, saying they would harm U.S. consumers and protect "few if any American jobs."It marked Greenspan's most blunt assessment to date that currency-related legislation that has attracted support from two-thirds of the Senate would harm the U.S. economy by driving up prices for the Chinese products Americans crave.
He said a move toward protectionism in the world's largest economy could also unsettle global financial markets while doing little to protect jobs in this country.
The US should welcome cheap Chinese imports. Imports increase the value of American pay-packets and are part of the process of climbing up the economic ladder.