How The Falling Dollar Affects Americans

[Deja Q]

http://www.cbsnews.com/stories/2007/09/24/business/main3291233.shtml

U.S. Consumers' Standard Of Living May Drop, But Demand For American Labor Will Rise

How will this affect housing prices and Americans' ability to pay them back?

It's a known fact that if parents lack the time to raise their children, nobody else will. TV sure as hell is no substitute for parenting. The schools say it's not their business to do so. As a result, our kiddies may or may not become worthy for a labor pool, if they're not going to take time to learn or reason to authority.

And if India and China can make big, prosperous middle classes by making buggy applications, third rate support, and toxic products, why must our standard of living drop? And will this newfound need for American labor allow the same sloppy nature accorded India and China?

And isn't our economy based on our ability TO purchase things? To my knowledge, least 67% of our economy depends on this.

And since one's credit report is a determining factor for employment, if a person loses their job and has to live off a credit card for a while (eep!), after x amount of rejected job applications because of that alone... *sigh* Something isn't quite right...

:shrug:

[DaveJ]

1. The article implies it's not that bad for most people

It looks like this may affect people who live the high life more than 'average' Americans.

"For consumers who like to buy European automobiles or French cheeses, it means their standard of living will go down as they pay more money for these goods. But for American workers on the assembly lines at places such as Boeing or Caterpillar, it means their employers' products will be more in demand."

It makes sense to me.

[gateley]

2. I don't agree. I'm stunned every time I go to the grocery store. nt

[pitohui]

3. you cheese eater you!

all kidding aside, i just want to cry every time i've gone shopping for groceries since katrina

it's obscene how they've used this to jack up the prices

[Deja Q]

4. Good point.

:blush:
I certainly read that article the wrong way...

[pitohui]

6. you didn't read it wrong, toad, the other person believes the propaganda EOM

,

[DaveJ]

8. Hey, as the 'other poster' I'd like to say

The person I'm responding to probably wants it both ways, a smaller trade deficit and a higher dollar. How would that work exactly?

[pitohui]

9. the strong dollar policy seemed to work fine in the clinton era

bush is the one who implemented the soft dollar policy, i would ask you to consider the source and then to ask yourself if you are better off now that you were in clinton's day

i'm sure not better off now, i think it's pretty clear that most average to low income people are MUCH worse off

[DaveJ]

10. I was in college most that time. But I see what you're saying

However, I'm not attributing the economic problems to the soft dollar, but to free trade and war spending most of all. Things are getting better for me now, as of about 2 years ago, which coincides with the country becoming more Democratic. The small business I work for (owned by Democrats) also seems to be doing well. It depends on the industry I guess, but I had to make changes to what I expected in my career. I also want to start my own business so I'm not going to depend on an employer to get rich (or upper class).

[Deja Q]

12. Who, me?

Nice of you to accuse me upfront. :sarcasm:

[DaveJ]

13. I wasn't talking about you whatsoever

Sorry if you got that impression. My writing can often be confusing. I was being snide, not toward you, but the person I was responding to.

[pitohui]

5. well don't drink the kool aid

it's nice that their employer's products will be more in demand but since good health care is less available, pensions aren't so reliable as they used to be, and wages don't keep up with inflation, then the only person benefited is the employer, not the worker, who now can't even afford to buy his medicines in canada!

bush promoted a soft dollar policy because the very rich investor benefits, not because joe sixpack does

joe sixpack still has to buy medicine and eat food and scolding people for eating cheese (a basic food) is not really gonna get it

[endarkenment]

7. We don't manufacture much and China's Yuan is at least partially linked to our dollar.

So I don't buy the 'demand for american labor' bit. The Chines manufacture nearly everything these days and that is just not going to change in the near future.

An interesting note on the consumer part is that those damn foreigners tend to keep their prices fixed on the stuff they import into our domestic markets, if they can, in order to keep us consumers consuming. They can only do that for so long though, eventually the hollowing out of the dollar will have its effect.

Tourism will benefit, and eventually service oriented industries that were off-shored may come back home but that home coming will be a celebration of our living standard have descended to parity with India. I ain't going to crack open the champagne over that milestone.

[gateley]

11. All I know is RIGHT THIS MINUTE salaries haven't increased, workers are having

to pay utility bills whose rates have increased, food prices that are higher, buy gasoline on the same take home pay as before. That's as far as I can see this. I worry about those who can barely make it month to month. I can't even get my head around what needs to be done in the future or why it has become this way. America. Go figure.