- The Washington Times - Thursday, December 16, 2010

Patrice Hill wrote a fine piece in the Dec. 13 edition on America’s trading relationship with China (“U.S. free-traders sour on China,” Page 1).

China is importing food (rice), raw materials (iron, copper), oil and more, so raising the Chinese currency against the U.S. dollar will lead to price increases in China’s internal markets. Chinese leaders will not allow this, as it may cause unwanted political unrest.

A solution almost elegant in its simplicity has been proposed by author Giora Bsor, one he calls the labor balance tax. Mr. Bsor’s thesis is that of the three primary costs of goods sold, only labor has yet to be globalized. The cost of capital and raw materials have already been. This balancing of labor costs is critical to the establishment of a truly global economy.

Mr. Bsor proposes the implementation of an international customs formula that would adjust the imbalance between salaries in the exporting country and those of the importing country - in this case, the gap between the salaries of American and Chinese workers in the same industry.

CELIA CURRIN

New York, N.Y.