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Whoever wrote this article seems to think a strong dollar is fundamental to a strong economy. But, notice where it is on this timeline the only prolonged stren
by Booktrope 6mo ago
Whoever wrote this article seems to think a strong dollar is fundamental to a strong economy. But, notice where it is on this timeline the only prolonged strengthening of the dollar that shows up. Yep, you've got it, the depth of the great depression. And, notice where the WWII and postwar weakening of the dollar led -- that's right, to in many ways the most prosperous economy the world has ever seen.
Because we try to figure out how things like "strengthening" and "weakening" of the dollar fit in, and we actually have policies much more intelligent than, weaking of the dollar! Collapse is imminent!
- hintymad 6mo agoAnd a strong currency usually means weak manufacturing. And I don't know how a country can be strong without a solid manufacturing sector. Like, when we a war breaks out, we ask our enemies to sell us components and medical key ingredients?
- fakedang 6mo agoDidn't know Switzerland was a "weak" manufacturer (currently one of the strongest currencies there is, also in wide use).
- vessenes 6mo agoThey export something else.
- izacus 6mo agoYou're on to something, aren't you? Like... Maybe manufacturing isn't the end all?
- hintymad 6mo agoYeah, I'm sure there can be exceptions. When the US was super strong in manufacturing back in the 50s, the US dollar was also strong, or at least relatively speaking? That said, the US over the years outsourced their manufacturing, closing their domestic factories. A strong US dollar seemed have played a big role in such outsourcing.
- iso1631 6mo agoIf you aren't self-sufficient in energy, food, and to a lesser extent raw materials, a weak currency means everything is expensive.