Sunday, December 02, 2007

The Dollar Is Falling, and That’s Good News


More counter-intuitive economics- how is a weak dollar a good thing? For another, more global view, read this.

12 comments:

J said...

it sounds like the author of this article is trying to make people believe that the state of the economy is better than it really is so that they will not hold back from investing...
i still think a weak dollar is worse than a strong one. and contrary to what this guy argues, i think the fact that china "owns" so much of the US economy is bad as well...it DOES put us at their mercy.
also, i found it interesting that that only 16 percent of the US economy is imports--how can that be? we only manufacture bowing airplanes and some cars, right? i'm confused...
all i know is that the housing market is down, the value of our currency is down as is our reputation in the world, our exports are non-existent, and a lot of us cannot afford health care...and the only thing that is up is the price of oil--so there is a lot more bad news than good news.

J said...

it sounds like the author of this article is trying to make people believe that the state of the economy is better than it really is so that they will not hold back from investing...
i still think a weak dollar is worse than a strong one. and contrary to what this guy argues, i think the fact that china "owns" so much of the US economy is bad as well...it DOES put us at their mercy.
also, i found it interesting that that only 16 percent of the US economy is imports--how can that be? we only manufacture bowing airplanes and some cars, right? i'm confused...
all i know is that the housing market is down, the value of our currency is down as is our reputation in the world, our exports are non-existent, and a lot of us cannot afford health care...and the only thing that is up is the price of oil--so there is a lot more bad news than good news.

Anonymous said...

I never thought our weakened dollar could help the US. Even though we have become more reluctant to go to Europe, it is still cheaper for us to invest in Mexico. Since China keeps its currency weak on purpose to give all of its people jobs, the US are still buying from them with cheap prices. The exporting division is also more appealing to other countries. The weak dollar is making our economy grow like in the 1980’s.

Anonymous said...

Having a weak dollar is not too bad for our economy. When ever our dollar decreases, all Americans talk about is how the economy is failing and how everything is going wrong. Even for people like me, who often travel to Europe and lose money to the Euro, our decreasing dollar is good. Since more middle class people can now sell their products at a more productive cost, there will be an increase in the number of Americans who can afford upper-class luxuries. This should work out to help our nation's economy.

Anonymous said...

I guess the falling dollar isn't to bad if it mean other countries are improving. But didn't the federal reserve make the dollar decrease more with low rates, I just hope it doesn't decrease to much. It is kind of scary that China has 1.2 trillion dollars. I wish I had that much money.

Anonymous said...

Our week dollar is an obvious benefit for foreigners, and for however much it benefits us, will it still be for the good if it keeps falling and becoming weaker? Although it may be good for some reasons, i still believe there are many possible consequences we should still worry about as a result to the fall of the american dollar

Anonymous said...

Its hard to predict what will come with the fall of our currency. It could definitely be bad in many ways but there have also been good times when the dollar value has fallen. It is possible that a recession could be upon us but also could be seen as a time of opportunity. With the fall of the dollar our exports become very competitive and help to still expand our economy. Still with the decline of our dollar our economy remains to be very successful.

Anonymous said...

Its hard to predict what will come with the fall of our currency. It could definitely be bad in many ways but there have also been good times when the dollar value has fallen. It is possible that a recession could be upon us but also could be seen as a time of opportunity. With the fall of the dollar our exports become very competitive and help to still expand our economy. Still with the decline of our dollar our economy remains to be very successful.

Anonymous said...

Many people may see the falling value of the dollar and become fearful of investing in American goods. However, the weakened dollar isn't really all that bad. It has helped encourage our exports to rise once again and expand our economy. Also, more middle-class people can sell their products at a more productive cost, they will be able to afford the goods that used to be strictly for the upper-class.

Anonymous said...

When the dollar falls it isnt as bad as people think. when the dollar falls exports look much greater to buy and our economy expands. This will help the working class people make more money. Overall i believe that the falling dollar would help our economy.

Anonymous said...

our weak dollar benefits other countries. eventhough we have a weak dollar our good ecenomy makes up for it.

Anonymous said...

The weak dollar as explained in the article makes it seem like it isn't bad, but actually helps the economy in some way and helps the economy of other countries. But the reputation and bargains in europe aren't very good for americans anymore. But this article is from Dec. and now that the economy may go into or might already be in recession, would any part of the article saying that the falling dollar is good change? and would all the american assets held by the chinese affect us.