Speakership

[Solkern]

Why is a weak dollar better for our economy domestically?

It makes Americans products cheaper to buy, which in turn boost our economy. We sell more than with a strong dollar.

Or as https://edis.ifas.ufl.edu/publication/FE546# puts it:

A weak US dollar increases the demand for exported commodities, which may increase domestic revenues. A weak US dollar increases the price of imported commodities, which allows locally-produced commodities a better chance to compete in the domestic market.

Or as investopedia puts it:
An international traveler might harbor for a strong domestic currency because that would make travel to Europe inexpensive. But the downside is a strong currency can exert significant drag on the economy over the long term, as entire industries are rendered noncompetitive and thousands of jobs are lost. While some might prefer a strong currency, a weak currency can result in more economic benefits.

[Suppressed Poet]

It makes Americans products cheaper to buy, which in turn boost our economy. We sell more than with a strong dollar.

Or as https://edis.ifas.ufl.edu/publication/FE546# puts it:

A weak US dollar increases the demand for exported commodities, which may increase domestic revenues. A weak US dollar increases the price of imported commodities, which allows locally-produced commodities a better chance to compete in the domestic market.

Yeah I’m aware of the basic principles and I agree with you if you’re in the business of exports, but overall a weak dollar does more harm to our economy than it does good.

BTW: I’m currently in mandatory Regulation K training for work, and it’s making my eyes glaze over.

[Solkern]

Yeah I’m aware of the basic principles and I agree with you if you’re in the business of exports, but overall a weak dollar does more harm to our economy than it does good.

BTW: I’m currently in mandatory Regulation K training for work, and it’s making my eyes glaze over.

That’s not necessarily true, both a strong dollar and a weak dollar have positive and negative influence on the economy overall but in my opinion a weaker dollar is more beneficial to the economy than a stronger dollar. But nothing is universally agreed on and it’s all up for debate. We are the number 2 exporter in the world, and our entire economy benefits from a weaker dollar, also including tourism, a weaker dollar brings more tourist, and makes domestic tourism for Americans more attractive as well, thus increasing our economy.

Oh god I did that training a while back, I feel so sorry for you right now.

[Anebriated]

McHenry is going to stay speaker until January, they’ll pass the spending bills and more money for Ukraine/Israel in the short term. Kick the can.

[Suppressed Poet]

That’s not necessarily true, both a strong dollar and a weak dollar have positive and negative influence on the economy overall but in my opinion a weaker dollar is more beneficial to the economy than a stronger dollar. But nothing is universally agreed on and it’s all up for debate. We are the number 2 exporter in the world, and our entire economy benefits from a weaker dollar, also including tourism, a weaker dollar brings more tourist, and makes domestic tourism for Americans more attractive as well, thus increasing our economy.

Oh god I did that training a while back, I feel so sorry for you right now.

We’re also the number 1 importer in the world and have been a net importer for decades, but fair enough. There are indeed pros and cons to both. I’d still argue that for the average US consumer, a strong dollar is much more beneficial.

[Solkern]

We’re also the number 1 importer in the world and have been a net importer for decades, but fair enough. There are indeed pros and cons to both. I’d still argue that for the average US consumer, a strong dollar is much more beneficial.

A stronger dollar makes domestically produced and sold items, more expensive than imported ones, how is that beneficial to the economy? It skews the market in favor of imported products.

A weaker dollar = more jobs, and expanded business, while a stronger currency means less domestic jobs, and tighter monetary policies within companies.

[Seran]

A stronger dollar makes domestically produced and sold items, more expensive than imported ones, how is that beneficial to the economy? It skews the market in favor of imported products.

A weaker dollar = more jobs, and expanded business, while a stronger currency means less domestic jobs, and tighter monetary policies within companies.

A strong dollar is more beneficial to consumers generally, as a lower base cost for goods and the transportation therein is more likely to be passed on to consumers due to retailer competition in a cost plus environment. Since we source so much of our materials overseas, cheaper input costs for domesticly consumed products may help balance the scales however.

Conversely, a weak dollar does produce more demand overseas, but where automation is frequently surplanting manufacturing jobs that may see profit sharing or bonuses. Meanwhile, the additional expense of importing foreign made goods absolutely will get passed on to consumers.

Americans consume far more overseas sourced products than we do those manufactured domestically, so I believe a strong dollar is more beneficial overall.

[Suppressed Poet]

A stronger dollar makes domestically produced and sold items, more expensive than imported ones, how is that beneficial to the economy? It skews the market in favor of imported products.

A weaker dollar = more jobs, and expanded business, while a stronger currency means less domestic jobs, and tighter monetary policies within companies.

That’s not necessary true that it makes domestic products produced and sold more expensive. In many cases we are importing the raw materials to make those products, and having a strong dollar can (potentially) make them cheaper when sold domestically. It most definitely makes those exported products more expensive.

Generally and broadly speaking, a strong dollar hurts foreigners, export companies, and corporations with a large footprint abroad. Since our economy is generally built around US consumers & that we are a net importer, the pros outweigh the cons for having a strong dollar.

[Suppressed Poet]

A strong dollar is more beneficial to consumers generally, as a lower base cost for goods and the transportation therein is more likely to be passed on to consumers due to retailer competition in a cost plus environment. Since we source so much of our materials overseas, cheaper input costs for domesticly consumed products may help balance the scales however.

Conversely, a weak dollar does produce more demand overseas, but where automation is frequently surplanting manufacturing jobs that may see profit sharing or bonuses. Meanwhile, the additional expense of importing foreign made goods absolutely will get passed on to consumers.

Americans consume far more overseas sourced products than we do those manufactured domestically, so I believe a strong dollar is more beneficial overall.

Today must be a cold day in hell or something for me to agree (mostly) with a Seran post.

Edit: Now you have me doubting my own position and thinking Solkern might be right.

[Parkbandit]

Today must be a cold day in hell or something for me to agree (mostly) with a Seran post.

Edit: Now you have me doubting my own position and thinking Solkern might be right.

That's a fucking conundrum.

On one hand.. you are agreeing with Seran... which is troubling enough...

On the other hand.. Solkern would be right if Seran is not.

Holy fuck... your head must be spinning.

I do not envy your position.