This is the Cato Daily Podcast for Wednesday, October 5, 2011.

I'm Kila Brown.

Many members of Congress want to punish China for how it values its own currency,

but there are good reasons to believe that it won't

achieve its main goals, that China will retaliate, and that part of the blame can be laid at

the feet of big spenders in Washington.

Dan Eekinson, Associate Director for Trade Policy Studies at the Cato Institute, offers

his thoughts.

Let's get this out of the way first. Trade is good. Trade is a good thing, yeah. I'm in favor of it.

Most people should be in favor.

Policymakers should be in favor.

They're rhetorically in favor of it.

But by trade, many of these policymakers mean only exports.

Imports are just as crucial.

Exports may be help on the revenue side of U.S.

business, the equation, the profit equation for U.S. businesses, but we also have to look,

we also have to look at the cost side and imports are the cost side,

imports, free access to imports or better access to imports reduces the cost of production

and reduces family operating expenses.

Because of the focus on exports, the fact that China's currency has not appreciated as quickly as U.S.

policymakers would like, certainly we're in something of a down economy right now.

They seek to, many members of Congress seek to punish China for failing to do so. What are some problems with that?

...