Corporations Are Among the Chief Drivers of Protectionism
8 November 2006
Editor, The Washington Post
1150 15th St., NW
Washington, DC 20071
Dear Editor:
General Motors' chief economist complains that an allegedly undervalued yen gives Toyota "a $3,000 advantage on small cars and $9,000 on Lexus luxury cars" ("Toyota's Global Profit Surges," Nov. 8). GM's economist is mistaken.
If the yen is undervalued, the advantage goes chiefly to American consumers. An undervalued yen enables these consumers to buy cars for thousands of dollars less they would otherwise have to pay. GM whines, of course, but American consumers should applaud all the way to the bank.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
Editor, The Washington Post
1150 15th St., NW
Washington, DC 20071
Dear Editor:
General Motors' chief economist complains that an allegedly undervalued yen gives Toyota "a $3,000 advantage on small cars and $9,000 on Lexus luxury cars" ("Toyota's Global Profit Surges," Nov. 8). GM's economist is mistaken.
If the yen is undervalued, the advantage goes chiefly to American consumers. An undervalued yen enables these consumers to buy cars for thousands of dollars less they would otherwise have to pay. GM whines, of course, but American consumers should applaud all the way to the bank.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
Posted by Don Boudreaux on
Thursday June 21, 2007 at 8:50am