Washington's Knucklehead Economics.

The article presents an editorial criticizing the United States President George W. Bush administration for its economic policy. Congress is ready to slap punitive tariffs on China. Capitol Hill seems ready to ditch the Central American-Dominican Republic Free Trade Agreement (CAFTA). So-called antidumping suits brought by industries allegedly injured by imports are proliferating. Treasury Department officials have persuaded themselves that our trade deficit with China is a disaster and is the result of China's currency having been pegged to the dollar at an allegedly low fixed rate since 1995. Trade with China enables our high-technology companies to stay on the cutting edge of innovation by focusing more resources on design and new breakthrough products. Washington's economic idiocy is also on display with CAFTA, which involves the U.S., five Central American nations and the Dominican Republic. Currently some 80% of these countries' goods come into the U.S. duty free, while many U.S. exports to them still face stiff tariffs. CAFTA would generate economic growth for its members.