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Additional Details
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Wu | What does the weak dollar do for the US economy/ world economy? |
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The DoomsdayClock
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Weak Dollar means... Importing is expensive of US, foreign products cost more, exporting is Cheaper for other countries, our products are cheaper. Vacation is expensive abroad for americans, Vacation for foreigners in the US is cheaper.
It also makes it easier for foreign countries to pay their debts back, they pay in dollars, if the dollar is weak, their currency has more value and they save money...
The Euro € is taking over as a world currency, is used be all members of the european union except England and is accepted everywhere on earth, more favorably than american dollars in many cases. |
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phoephus
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For people in the U.S.-Imports and commodities cost more, interest rates go up.
World economy-Stuff from U.S. is cheaper. Some countries actually fix the value of their money to the Dollar so their money becomes weaker too. |
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Anita Johnson
 |
makes imports more expensive, so people in the USA buy more homemade stuff. it also makes exports cheaper for other countries to buy so it makes it easier to sell elsewhere in the world.
the big downside is when you travel abroad. your dollar just does not go very far. |
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I see you
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In the USA it costs us more money to buy the same things we used to buy. Our bills , like the mortgages we have on our homes for 30 years or more, stay the same, or costs more interests too.
Work many hours, a lot can only afford to eat fast food and watch TV - can't afford vacations, healthclub memberships, golf, skiing, or other activities that would make them stop being overweight. Caught in owing for house and car, salaries dropping in comparison for more than twenty years...sound familiar? |
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squeezeplay00
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A weak dollar makes American products cheaper to the rest of the world thereby increasing American exports. |
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customdreammachines
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our fries are gonna be 2 dollars instead of 1. |
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justanotherengine
 |
weak huh ? It's the most stable economy on the planet, the dollar may fluctuate but, it's still the most reliable bank in the world. U.S. Currency is accepted world wide, much better than "Visa" ! |
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jxt299
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It makes US exports to the rest of the world cheaper, so more competitive and it makes it cheaper for foreigners to visit here. It also makes imports to the US (oil and food mainly) more expensive and makes it more expensive for Americans to travel abroad, and more expensive to maintain armies abroad. A strong dollar is better, I think. |
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captmhunt
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Americans don't seem to understand the Dollar is just the same as any other commodity... corn.. beans.. wheat... dollars... they are the same on the world market. If the price of corn goes up on the world market you can sell a bushel of corn for more money than if it goes down in price... just common sense.
The Dollar is the same... the value of the Dollar floats against most other currancies in the world. If you have a dollar and it is worth 0.60 ¢ and the EURO is worth $1.20, then it would take 2 dollars to buy one Euro... or vice versa.
The cheaper the dollar, the cheaper American goods cost in foreign currancies and the more attractive Americans goods are in real terms and the more goods would be sold. BUT... it the value of the dollar goes up, then the cost of American goods would become less attractive to foreign buyers and less would be sold.
If you think about this, you can see what happens when the value of the Dollar fluctuates wildly.
As a practical answer, I can no longer afford to live in Europe because my dollar (the monitary unit my retirement is paid in) is worth about half what it was worth 20 years ago.
When I moved to England for university, the exchange rate was $1.25 to the British £ but the exchang rate now is $1.86 to the £, so you can see that $12,500 THEN would buy 10,000 £ and it would take $1.86 NOW to buy the same 10,000 £
I hope this explains it... Just remember... the dollar is a commodity and it's only worth what someone is willing to pay for it. |
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Monsh
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makes it stronger |
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