Posted:
#1
https://finance.yahoo.com/news/trump-ultimately-want-see-strong-dollar-193743818.html
I was busy and didn't get around to this topic but I see it wasn't discussed, so I figured I'd see what everyone on Covers has to say about it. For anyone who wasn't paying attention, Mnuchin essentially tried to argue a weak dollar is good.
Personally, the way I see it is that a weak dollar is bad. That means my individual purchasing power has been reduced. It gets me less when I have it converted in other countries. How is that good? In fact, doesn't it suggest that current inflation is outpacing the value of the dollar and wage growth, which indicates too many people are living beyond their means and could cause a housing crash? That's the conclusion I came to about it.
Also, I saw someone try to counter with an argument that manufacturing and exports benefit in such an instance. Even if I take that at face value, how does that matter more than Americans being able to get the most for their money?
I was busy and didn't get around to this topic but I see it wasn't discussed, so I figured I'd see what everyone on Covers has to say about it. For anyone who wasn't paying attention, Mnuchin essentially tried to argue a weak dollar is good.
Personally, the way I see it is that a weak dollar is bad. That means my individual purchasing power has been reduced. It gets me less when I have it converted in other countries. How is that good? In fact, doesn't it suggest that current inflation is outpacing the value of the dollar and wage growth, which indicates too many people are living beyond their means and could cause a housing crash? That's the conclusion I came to about it.
Also, I saw someone try to counter with an argument that manufacturing and exports benefit in such an instance. Even if I take that at face value, how does that matter more than Americans being able to get the most for their money?
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