(1888PressRelease)
June 25, 2007 - New York, NY : CHINA FINANCE CENTRE, the New York based multimedia and trade exposition center expanding business ties between China and the United States, has proposed that Congress be required to issue Economic Impact Statements with all new legislative measures.
The proposal was first outlined on Monday in CFC’s weekly China Business Watch publication in reaction to a current Congressional move to force China to increase the value of its currency. The bill’s sponsors theorize that increasing China’s exchange rate will make its exports more costly, and slow the movement of US manufacturing to the country. CFC has noted that this represents a serious misunderstanding and oversimplification of the economic consequences of such a new law, which many economists say could spark a regional crisis and worldwide recession. Such an economic meltdown followed Japan’s increase in its exchange rate in the late 90’s.
It is CFC’s position that Congressional members sponsoring such legislation should be required to prepare and submit a detailed Economic Impact Statement in support of their proposal. Under CFC’s plan, the impact study would outline the likely projected results to the U.S. economy and taxpayers should the legislative proposal be enacted into law.
The group notes that the submission of such Economic Impact Statements would assure that predictable economic consequences of the legislation would be fully considered and debated by the Congress and the public.
Also, the sponsors’ assessments and projections would become part of the record, providing a basis for political accountability should economic disruptions occur following passage of such measures.
The CFC legislative proposal and issues of China Business Watch are available at www.chinafc.net.
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