Didn’t that used to be, like, twenty cents?
Alternate title: I sure am glad Japan isn’t an oil-producing nation.
Not being an economist, my understanding of what that means is somewhat limited. As the dollar loses value, foreign goods become more expensive for us, but our goods become less expensive for them. Travel to the U.S. becomes cheaper, but U.S. travel to other countries becomes more expensive.
Right?
So that’s not all bad, really. Seems to me the rest of the world should be a little concerned about the dollar right now – not just us.
Of course, if foreign goods are relatively more expensive, domestic goods will be, too, unless every stage of manufacture occurs entirely in this country. Even then, domestic goods will remain steady in price relative to foreign goods, and since foreign goods are more expensive, we’re still less wealthy overall.
Which is bad.
How am I doing? Am I babbling incoherently about something I clearly don’t understand?
There’s also the whole national pride thing. The American dollar being the envy of the entire world, and all that. And I’m sure there’s some larger geopolitical reasons that a weaker dollar is worse for us, better for others: China; India; the Democratic Party.
Hey, that’s a cheap shot. Heh. Yeah.
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