Should be Titled "StatistWeek"
10 November 2006
Editor, Business Week
Dear Editor:
In "Can Anyone Steer This Economy?" (Nov. 20), you conclude that it is "worrisome" that "Despite federal outlays of over $125 billion for medical research over the past five years, the U.S. has a large and growing trade deficit in advanced biotech and medical goods."
You're too quick to worry over this vague statistic. Because most U.S. imports are production goods rather than consumption goods, many of the biotech and medical goods Americans import might well be used to further the research funded by Uncle Sam. That is, it's quite plausible that the source of the trade deficit in biotech and medical goods is nothing other than the federal subsidies themselves.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
Editor, Business Week
Dear Editor:
In "Can Anyone Steer This Economy?" (Nov. 20), you conclude that it is "worrisome" that "Despite federal outlays of over $125 billion for medical research over the past five years, the U.S. has a large and growing trade deficit in advanced biotech and medical goods."
You're too quick to worry over this vague statistic. Because most U.S. imports are production goods rather than consumption goods, many of the biotech and medical goods Americans import might well be used to further the research funded by Uncle Sam. That is, it's quite plausible that the source of the trade deficit in biotech and medical goods is nothing other than the federal subsidies themselves.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
Posted by Don Boudreaux on
Friday June 29, 2007 at 5:10am