4 ms·

Isn’t the dollar dominance a bit of a blessing and a curse? Labor rate in U.S. is very high compared to other countries. It inevitably brings us many benefits,

by pylua 1y ago

Isn’t the dollar dominance a bit of a blessing and a curse? Labor rate in U.S. is very high compared to other countries. It inevitably brings us many benefits, but it does feel like the U.S. and other western countries are being hollowed out. Maybe this is more of cost disease than dollar dominance. Maybe they are related in some ways?

six_four_eight 1y ago
my understanding is that yes it is, you cant make shoes in the US, but the power that comes from pretty much all finance flowing through the American pipes is a good trade off.
- Xenoamorphous 1y ago
  > my understanding is that yes it is, you cant make shoes in the US I love my US made RedWings and Aldens, just not cheap. :) (and I’m not American)
  - alabastervlog 1y ago
    Red wings and Rancourt & Company, here, plus Mexican and Spanish manufacturers (most search engines are terrible at surfacing these, you need to specify the country to find them) when I can’t find what I want in my price bracket in the US. Alden’s a bit rich for my blood. Frankly, sneaker prices are getting so damn high that for the last couple years “expensive” leather shoes and boots from manufacturers that have resisted big price hikes have been looking more and more like a bargain…
    - quickthrowman 1y ago
      > Frankly, sneaker prices are getting so damn high that for the last couple years “expensive” leather shoes and boots from manufacturers that have resisted big price hikes have been looking more and more like a bargain… Red Wing in particular has only raised prices about 10% in the past 10 years.
  - tartoran 1y ago
    Good quality comes with a price tag.
    - Xenoamorphous 1y ago
      Indeed!
- fatbird 1y ago
  The USD as the world's reserve currency means, effectively, that other nations are lending the US money at the very low interest rates that Treasuries yield. Effectively, the US gets the best and biggest line of credit in the world, with which it had (until now) financed the most incredible expansion of industrial, financial and academic prowess the world has ever seen.
  - slt2021 1y ago
    it also allows USA to export inflation to the entire world. Whole world will be experiencing inflation, thus, diluting the effect it has on the US population
- quickthrowman 1y ago
  You can get US made shoes, but they’re expensive. Made in USA New Balance pairs run $200, Red Wing boots are $350+, and Alden shoes and boots start at $700 and go up to $1,000.
- HDThoreaun 1y ago
  of course you can make shoes in the US. The problem is no one buys them because theyre not competitively priced.
maest 1y ago
> are being hollowed out. What does this mean?
- pylua 1y ago
  Rust belt. Many places where opportunity had dried up. Not just the north east, but even Tennessee. It’s low wage jobs or selling drugs, or both.
  - slt2021 1y ago
    how come immigrants from Haiti/other 3rd world countries come to the poorest rural towns in USA and make it work, while US citizens drown in drugs and crime? The opportunity is there, its just USA was supposed to use the reserve currency status to invest domestically in its own people. Instead USA made a business out of education (private schools and elite colleges). This creates a situation where only high value jobs are feasible in the USA, but the education to do these high value jobs is too expensive. Now you have to import foreign talent, as well as goods, and this leads to erosion of the country. China on the other hand, invested in its own people and developed industries domestically, rather than importing talent
    - slumberlust 1y ago
      It sounds like you're arguing we should invest more in the population's education? I'd agree with that. > how come immigrants from Haiti/other 3rd world countries come to the poorest rural towns in USA and make it work, while US citizens drown in drugs and crime? Any source(s) on this? First I'm hearing of this correlation.
      - slt2021 1y ago
        https://immigrationimpact.com/2024/09/17/immigrants-are-making-ohio-great-lets-talk-about-that/ https://immigrationimpact.com/2024/09/17/immigrants-are-maki...
  - HDThoreaun 1y ago
viraptor 1y ago
That's mixing up dominance with high value. In theory there could be a world with a lower value dollar that's still stable and used for international trade.
CountSessine 1y ago
Yes, this is the Triffin Trap or the Triffin Dilemma https://en.wikipedia.org/wiki/Triffin_dilemma https://en.wikipedia.org/wiki/Triffin_dilemma
- chatmasta 1y ago
  It seems both backwards and perfectly sensible that the country with the biggest debts is also the country with the biggest stick. It’s backwards because it seems counterintuitive to any mafia-style arrangement where the guy with the big stick is collecting the money. But it’s sensible because the safest debtor is one that won’t default, and why would the country with the biggest stick ever want to default? It’s almost like some twisted version of Mutually Assured Destruction mixed with economics and realpolitik. As long as you don’t try to collect your money, it’s safe and profitable to lend me more of it. Because of the implication…

by pylua 1y ago

six_four_eight 1y ago

my understanding is that yes it is, you cant make shoes in the US, but the power that comes from pretty much all finance flowing through the American pipes is a good trade off.

Xenoamorphous 1y ago
> my understanding is that yes it is, you cant make shoes in the US I love my US made RedWings and Aldens, just not cheap. :) (and I’m not American)
- alabastervlog 1y ago
  Red wings and Rancourt & Company, here, plus Mexican and Spanish manufacturers (most search engines are terrible at surfacing these, you need to specify the country to find them) when I can’t find what I want in my price bracket in the US. Alden’s a bit rich for my blood. Frankly, sneaker prices are getting so damn high that for the last couple years “expensive” leather shoes and boots from manufacturers that have resisted big price hikes have been looking more and more like a bargain…
  - quickthrowman 1y ago
    > Frankly, sneaker prices are getting so damn high that for the last couple years “expensive” leather shoes and boots from manufacturers that have resisted big price hikes have been looking more and more like a bargain… Red Wing in particular has only raised prices about 10% in the past 10 years.
- tartoran 1y ago
  Good quality comes with a price tag.
  - Xenoamorphous 1y ago
    Indeed!
fatbird 1y ago
The USD as the world's reserve currency means, effectively, that other nations are lending the US money at the very low interest rates that Treasuries yield. Effectively, the US gets the best and biggest line of credit in the world, with which it had (until now) financed the most incredible expansion of industrial, financial and academic prowess the world has ever seen.
- slt2021 1y ago
  it also allows USA to export inflation to the entire world. Whole world will be experiencing inflation, thus, diluting the effect it has on the US population
quickthrowman 1y ago
You can get US made shoes, but they’re expensive. Made in USA New Balance pairs run $200, Red Wing boots are $350+, and Alden shoes and boots start at $700 and go up to $1,000.
HDThoreaun 1y ago
of course you can make shoes in the US. The problem is no one buys them because theyre not competitively priced.

maest 1y ago

> are being hollowed out. What does this mean?

pylua 1y ago
Rust belt. Many places where opportunity had dried up. Not just the north east, but even Tennessee. It’s low wage jobs or selling drugs, or both.
- slt2021 1y ago
  how come immigrants from Haiti/other 3rd world countries come to the poorest rural towns in USA and make it work, while US citizens drown in drugs and crime? The opportunity is there, its just USA was supposed to use the reserve currency status to invest domestically in its own people. Instead USA made a business out of education (private schools and elite colleges). This creates a situation where only high value jobs are feasible in the USA, but the education to do these high value jobs is too expensive. Now you have to import foreign talent, as well as goods, and this leads to erosion of the country. China on the other hand, invested in its own people and developed industries domestically, rather than importing talent
  - slumberlust 1y ago
    It sounds like you're arguing we should invest more in the population's education? I'd agree with that. > how come immigrants from Haiti/other 3rd world countries come to the poorest rural towns in USA and make it work, while US citizens drown in drugs and crime? Any source(s) on this? First I'm hearing of this correlation.
    - slt2021 1y ago
      https://immigrationimpact.com/2024/09/17/immigrants-are-making-ohio-great-lets-talk-about-that/ https://immigrationimpact.com/2024/09/17/immigrants-are-maki...
- HDThoreaun 1y ago

viraptor 1y ago

That's mixing up dominance with high value. In theory there could be a world with a lower value dollar that's still stable and used for international trade.

CountSessine 1y ago

Yes, this is the Triffin Trap or the Triffin Dilemma https://en.wikipedia.org/wiki/Triffin_dilemma https://en.wikipedia.org/wiki/Triffin_dilemma

chatmasta 1y ago
It seems both backwards and perfectly sensible that the country with the biggest debts is also the country with the biggest stick. It’s backwards because it seems counterintuitive to any mafia-style arrangement where the guy with the big stick is collecting the money. But it’s sensible because the safest debtor is one that won’t default, and why would the country with the biggest stick ever want to default? It’s almost like some twisted version of Mutually Assured Destruction mixed with economics and realpolitik. As long as you don’t try to collect your money, it’s safe and profitable to lend me more of it. Because of the implication…