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A stronger dollar combined with a lack of a middle-class that can actually use the dollar's strength to consume more stuff means trouble.
by horsecaptin 11y ago
A stronger dollar combined with a lack of a middle-class that can actually use the dollar's strength to consume more stuff means trouble.
- pessimizer 11y agoA stronger dollar is what destroys the middle class by crushing exports: http://www.tradingeconomics.com/united-states/balance-of-trade http://www.tradingeconomics.com/united-states/balance-of-tra... (click MAX) http://www.usatoday.com/story/money/business/2015/05/05/trade-deficit-march/26883119/ http://www.usatoday.com/story/money/business/2015/05/05/trad...
- bcg1 11y agoPerhaps worse for people in the US than a potential drop in exports (we've had a negative balance of trade for a while, irrespective of dollar strength) is the effect on corporate earnings for US companies that make money abroad. A strong dollar wreaks havoc on their balance sheets (since they need to report their earnings in dollars) and can absolutely lead to falling share prices as well as domestic job cuts.