Asian Loan Crisis

Re “Will the Real Crisis Please Stand Up,” Commentary, Jan. 25:

For decades the American government’s encouragement of American investment in Asia effectively weakened domestic labor unions and with them, the middle class. These investments were artificially propped up by shaky business loans to the tune of hundreds of millions of dollars. Now we, the taxpaying middle class, are being asked to guarantee the IMF bailout to save the fortunes of the very people who made these sloppy investments and loans.

Robert Borosage raises the concern of rising deficits and lost jobs, especially in the auto industry. Most of the automobile parts are already made in Asia, making the auto industry a big winner as the price of parts goes down. If Borosage were really interested in saving American jobs he would be pressing for small-business loan guarantees, training programs and investment credits here at home. Deficits can be more effectively controlled by shifting the focus of taxation from income to sales.

THOMAS L. RODGERS JR.

Los Angeles