It has advantages and disadvantages but for the most part this economy was built on a strong dollar. That change upsets a lot of things like raising the cost of oil and etc.
In a global economy having a weak dollar means that while you move more volume in exports, you pay more for imports. Leads to inflation, and you pay more for everything.
Dunno, sounds great to me. Who doesn't love buying less with the same dollar?
edit - though I will admit it's not nearly as bad if the US is a net exporter...but I don't think they are.
[QUOTE="The_Mac_Daddy"]The weak dollar is actually better for the American economy. People get confused with the terms "weak" and "strong" dollar. xaos
Please elaborate on how less being paid for our exports and paying more for our imports is better for the economy...I'm wondering about that conclusion myself....
No one wants to spend more than they need to for things, when the US dollar is weak, people that have currency in US Dollars end up paying more for goods that are produced overseas than they do when the dollar is strong.
And I like going to canada or mexico and getting more play money than real money. :)
The weak dollar is actually better for the American economy. People get confused with the terms "weak" and "strong" dollar. The_Mac_Daddy
The USA is a consumerist country first and foremost. Canada, on the other hand, has primarily been an export-based country hstorically, although they also keep a handle on consumerism.
The USA should have a strong dollar so their residents can consume. Canada should have a weaker dollar so its export business isn't hurt.
[QUOTE="The_Mac_Daddy"]The weak dollar is actually better for the American economy. People get confused with the terms "weak" and "strong" dollar. xaos
Please elaborate on how less being paid for our exports and paying more for our imports is better for the economy...
People instinctively believe that a weak dollar is a sign of economic trouble and that a strong dollar is a sign of a robust economy (and is something to be proud of). This, I believe, is a case of language bewitching the intelligence. If we did not use the terms "weak" and "strong" but instead used the terms "export favoring" and "import favoring," people would be less hysterical about this issue. There is no correct value for the dollar relative to the other currencies of the world. Moreover, the fact that the dollar has fallen a lot relative to the euro over the last 5 years or so says nothing (repeat: NOTHING) about the strength of the US economy relative to the economies of Europe. By any measure, the US economy has outperformed the economies of Europe for the better part of 15 years (including the Bush years), yet the value of the dollar has fallen anyway.
[QUOTE="xaos"][QUOTE="The_Mac_Daddy"]The weak dollar is actually better for the American economy. People get confused with the terms "weak" and "strong" dollar. The_Mac_Daddy
Please elaborate on how less being paid for our exports and paying more for our imports is better for the economy...
People instinctively believe that a weak dollar is a sign of economic trouble and that a strong dollar is a sign of a robust economy (and is something to be proud of). This, I believe, is a case of language bewitching the intelligence. If we did not use the terms "weak" and "strong" but instead used the terms "export favoring" and "import favoring," people would be less hysterical about this issue. There is no correct value for the dollar relative to the other currencies of the world. Moreover, the fact that the dollar has fallen a lot relative to the euro over the last 5 years or so says nothing (repeat: NOTHING) about the strength of the US economy relative to the economies of Europe. By any measure, the US economy has outperformed the economies of Europe for the better part of 15 years (including the Bush years), yet the value of the dollar has fallen anyway.
A strong dollar is still better relative to other countries.:|
[QUOTE="xaos"][QUOTE="The_Mac_Daddy"]The weak dollar is actually better for the American economy. People get confused with the terms "weak" and "strong" dollar. The_Mac_Daddy
Please elaborate on how less being paid for our exports and paying more for our imports is better for the economy...
People instinctively believe that a weak dollar is a sign of economic trouble and that a strong dollar is a sign of a robust economy (and is something to be proud of). This, I believe, is a case of language bewitching the intelligence. If we did not use the terms "weak" and "strong" but instead used the terms "export favoring" and "import favoring," people would be less hysterical about this issue. There is no correct value for the dollar relative to the other currencies of the world. Moreover, the fact that the dollar has fallen a lot relative to the euro over the last 5 years or so says nothing (repeat: NOTHING) about the strength of the US economy relative to the economies of Europe. By any measure, the US economy has outperformed the economies of Europe for the better part of 15 years (including the Bush years), yet the value of the dollar has fallen anyway.
It by itself may not at times say something about the economy (it does at times) but it certainly effects the health of the economy. Industries don't just up and "oh I guess we're exporting now"and chug along.
I'm just kind of playing the devils advocate here..
both sides kind of make sense so in all honesty i don't really know what is better. I guess it's better for some people but worse for others?
The_Mac_Daddy
Its certainly better for people who trade in other currencies; tourists for instance. I've noticed a real spike in Asian and European tourists here in SF.
I'm just kind of playing the devils advocate here..
both sides kind of make sense so in all honesty i don't really know what is better. I guess it's better for some people but worse for others?
The_Mac_Daddy
For the most part it is better for it to be stable. Countries and industries are not balanced between exports and imports to where fluctuations can simply be absorbed easily and proportionally. The economies adjust and do what works for the strength or weakness of their currency.
I'm just kind of playing the devils advocate here..
both sides kind of make sense so in all honesty i don't really know what is better. I guess it's better for some people but worse for others?
xaos
Its certainly better for people who trade in other currencies; tourists for instance. I've noticed a real spike in Asian and European tourists here in SF.
But wouldn't that help the US economy with the larger influx of tourism? People who don't live here spending their money here...
A weak currency is bad if you're a consumerist country like the US. Poor countries like China or India benefits from it, since they're able to sell more stuff.
I'm just kind of playing the devils advocate here..
both sides kind of make sense so in all honesty i don't really know what is better. I guess it's better for some people but worse for others?
The_Mac_Daddy
Its certainly better for people who trade in other currencies; tourists for instance. I've noticed a real spike in Asian and European tourists here in SF.
But wouldn't that help the US economy with the larger influx of tourism? People who don't live here spending their money here...
No, because they are paying less for the same goods and services, reducing the profitability per tourist.
I'm just kind of playing the devils advocate here..
both sides kind of make sense so in all honesty i don't really know what is better. I guess it's better for some people but worse for others?
The_Mac_Daddy
Its certainly better for people who trade in other currencies; tourists for instance. I've noticed a real spike in Asian and European tourists here in SF.
But wouldn't that help the US economy with the larger influx of tourism? People who don't live here spending their money here...
Over the very long haul MAYBE, but not in proportion to other losses for a LONG time, and even that isn't a sure thing.
It's a good thing because Foreign businesses and people will now buy more of our stuff because it is cheaper now, bad cause we gotta pay more for their stuff, but their business will boost our economy.
It's a good thing because Foreign businesses and people will now buy more of our stuff because it is cheaper now, bad cause we gotta pay more for their stuff, but their business will boost our economy.ShadowFlood
[QUOTE="ShadowFlood"]It's a good thing because Foreign businesses and people will now buy more of our stuff because it is cheaper now, bad cause we gotta pay more for their stuff, but their business will boost our economy.The_Mac_Daddy
See, that's what I was thinking...
The thing is we don't sell them that much stuff as it is, even with a weak currency. It is not enough to overcome the negative effects of a weak currency.
It's a good thing because Foreign businesses and people will now buy more of our stuff because it is cheaper now, bad cause we gotta pay more for their stuff, but their business will boost our economy.ShadowFlood
The stuff America exports is on a completely different level than China's, and is not as heavily dependent on prices. If the American dollar weakens, it will only result in less profit since industries are simultaneously outsourcing to other countries.
I'm just kind of playing the devils advocate here..
both sides kind of make sense so in all honesty i don't really know what is better. I guess it's better for some people but worse for others?
xaos
Its certainly better for people who trade in other currencies; tourists for instance. I've noticed a real spike in Asian and European tourists here in SF.
i doubt thats because of the weak dollar. most likely its because its the last month of summer.
I'm just kind of playing the devils advocate here..
both sides kind of make sense so in all honesty i don't really know what is better. I guess it's better for some people but worse for others?
MetallicaKings
Its certainly better for people who trade in other currencies; tourists for instance. I've noticed a real spike in Asian and European tourists here in SF.
i doubt thats because of the weak dollar. most likely its because its the last month of summer.
No, I've lived here for 5 years and it's SIGNIFICANTLY more than before; now there are Chinese tour buses parked outside my apartment, 3 and 4 at a time, and there were never any before.
No, I've lived here for 5 years and it's SIGNIFICANTLY more than before; now there are Chinese tour buses parked outside my apartment, 3 and 4 at a time, and there were never any before.xaos
Maybe they just found out in China you live there.....:o
I'm just kind of playing the devils advocate here..
both sides kind of make sense so in all honesty i don't really know what is better. I guess it's better for some people but worse for others?
xaos
Its certainly better for people who trade in other currencies; tourists for instance. I've noticed a real spike in Asian and European tourists here in SF.
i doubt thats because of the weak dollar. most likely its because its the last month of summer.
No, I've lived here for 5 years and it's SIGNIFICANTLY more than before; now there are Chinese tour buses parked outside my apartment, 3 and 4 at a time, and there were never any before.
was it the fung wah bus??
speaking from experiance being in europe this summer when the dollar was poop. i didn't enjoy paying $10 for a diet coke....
[QUOTE="xaos"] No, I've lived here for 5 years and it's SIGNIFICANTLY more than before; now there are Chinese tour buses parked outside my apartment, 3 and 4 at a time, and there were never any before.LJS9502_basic
Maybe they just found out in China you live there.....:o It's a conspiracy! :cry:
speaking from experiance being in europe this summer when the dollar was poop. i didn't enjoy paying $10 for a diet coke....
comp_atkins
Softdrinks are always a bad idea in Europe anyway ;) Worse in some countries but they're always expensive. I go with the local wine or a espresso if I need caffeine.
speaking from experiance being in europe this summer when the dollar was poop. i didn't enjoy paying $10 for a diet coke....
duxup
Softdrinks are always a bad idea in Europe anyway ;) Worse in some countries but they're always expensive. I go with the local wine or a espresso if I need caffeine.
yeah. drank mostly water and wine all week by my gf was itching for a coke fix..
speaking from experiance being in europe this summer when the dollar was poop. i didn't enjoy paying $10 for a diet coke....
comp_atkins
Softdrinks are always a bad idea in Europe anyway ;) Worse in some countries but they're always expensive. I go with the local wine or a espresso if I need caffeine.
yeah. drank mostly water and wine all week by my gf was itching for a coke fix..
I think in France I bought a $4 sprite once. That was long before the days of the euro.
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