3 ms·
The downside will be permanent higher interest rates, as well as intolerance for the rest of the world to continued trade imbalance with the US. Real wages in
by pfdietz 2y ago
The downside will be permanent higher interest rates, as well as intolerance for the rest of the world to continued trade imbalance with the US. Real wages in the US will go down to compensate, making the US more competitive, but the dollar will not be so immune to fiscal shenanigans as it has been. The US will be unable to maintain the same level of real spending on government programs.