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Can you explain how "weakening our currency" isn't equivalent to making us poorer overall? What's so bad about a strong currency?
by jquery 11y ago
Can you explain how "weakening our currency" isn't equivalent to making us poorer overall? What's so bad about a strong currency?
- aianus 11y agoI'll give it a shot. If the U.S. dollar falls 30% against the Euro, suddenly Tesla cars are 30% cheaper for rich Frenchmen to buy. Maybe now the company makes a nice profit and goes on a hiring/investment spree instead of struggling to survive. Similarly for Boeing jets vs. Airbus jets, etc.
- tmlee 11y agoA weakening currency is probably aimed to boost exports. I think in theory, say the US Dollar weakens, everything appears cheaper, exports increase. US companies will then be able to employ more people within the country and thus improves employability and domestic consumption. It makes us poor overall, if we consume imported products, travel internationally, and if the economic plan fails in which employability and domestic consumption does not increase. This can happen when other equally competitive countries counter by de-valuing their currency as well.