Comments on: The US dollar’s decline in value may cause more harm than good for the US economy http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/ for students and teachers of AP and IB Economics Sat, 22 Nov 2008 11:21:23 +0000 http://wordpress.org/?v=2.6.3 By: jenniferchoi http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3165 jenniferchoi Mon, 29 Oct 2007 14:21:13 +0000 http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3165 It is intresting to know that a weaker dollar may help achieve a more balanced current account between America and its trading partners. But for people living in America, the decline of USD value is a bad thing, as Caleb said. And it is really interesting to see how change in the value of USD affects us, poeple living in Shanghai,China, and the people living in all around the world. It is intresting to know that a weaker dollar may help achieve a more balanced current account between America and its trading partners. But for people living in America, the decline of USD value is a bad thing, as Caleb said. And it is really interesting to see how change in the value of USD affects us, poeple living in Shanghai,China, and the people living in all around the world.

]]> By: Jeff Ye http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3154 Jeff Ye Mon, 29 Oct 2007 10:41:09 +0000 http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3154 I was surprised a while back when i found out that 1 USD was worth less than 8 RMB. This initially made me a little happier because you could get more USD with your RMB, and it was especially beneficial because i went back to the U.S. last summer. However, i didn't think about the reprecussions on American economy, and how prices of imported goods would rise. I probably won't enjoy this change when i go back there for college. I was surprised a while back when i found out that 1 USD was worth less than 8 RMB. This initially made me a little happier because you could get more USD with your RMB, and it was especially beneficial because i went back to the U.S. last summer. However, i didn’t think about the reprecussions on American economy, and how prices of imported goods would rise. I probably won’t enjoy this change when i go back there for college.

]]> By: Hansen Gu http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3151 Hansen Gu Mon, 29 Oct 2007 09:31:45 +0000 http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3151 It is interesting to read the first quote there about Asian living standards. For us living in Shanghai, whose parents are paid in RMB, it's a good thing. However, come winter break and some of us return home to the States, we might see the repercussions. And yes Philip I agree, it is interesting to see how the American dollar affects so many countries and aspects of life. It is interesting to read the first quote there about Asian living standards. For us living in Shanghai, whose parents are paid in RMB, it’s a good thing. However, come winter break and some of us return home to the States, we might see the repercussions. And yes Philip I agree, it is interesting to see how the American dollar affects so many countries and aspects of life.

]]> By: Philip Trampe http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3145 Philip Trampe Mon, 29 Oct 2007 01:21:56 +0000 http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3145 I think its really interesting to see how much the American dollar actually effects the rest of the world. It really puts into perspective how big an impact a superpower like the USA has on the economies of the other countries of the world. i guess its good for us out here in China though who want to buy our goods from the states however it's not really something for the Americans to cheer about if they plan on buying foreign goods. I think its really interesting to see how much the American dollar actually effects the rest of the world. It really puts into perspective how big an impact a superpower like the USA has on the economies of the other countries of the world. i guess its good for us out here in China though who want to buy our goods from the states however it’s not really something for the Americans to cheer about if they plan on buying foreign goods.

]]> By: Caleb http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3128 Caleb Sun, 28 Oct 2007 13:58:09 +0000 http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3128 The decline of the dollar is definately a bad thing. America has long since started outsourcing many of their jobs overseas and in general has a service based economy. More harm is done to Americans by weakening the dollar because the outsourced jobs are now costing firms more and more money, and that causes an inflation of prices in their goods, or it causes layoffs and mass unemployment within the U.S. even more so than the unemployment caused by imballanced exports to imports. The decline of the dollar is definately a bad thing. America has long since started outsourcing many of their jobs overseas and in general has a service based economy. More harm is done to Americans by weakening the dollar because the outsourced jobs are now costing firms more and more money, and that causes an inflation of prices in their goods, or it causes layoffs and mass unemployment within the U.S. even more so than the unemployment caused by imballanced exports to imports.

]]> By: Melanie http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3120 Melanie Sun, 28 Oct 2007 13:17:12 +0000 http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3120 it is amazing how the decline of the American Dollar can affect so many other countries. Well i suppose it was "America's Century". American consumers are on the losing end though, as compared to many asian countries, America is incredibly expensive. With prices and inflation on the rise, would the majority of the U.S population become poorer? it is amazing how the decline of the American Dollar can affect so many other countries. Well i suppose it was “America’s Century”. American consumers are on the losing end though, as compared to many asian countries, America is incredibly expensive. With prices and inflation on the rise, would the majority of the U.S population become poorer?

]]> By: HowardJing http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3116 HowardJing Sun, 28 Oct 2007 12:07:59 +0000 http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3116 I guess now would be a good time for Americans to invest in the Euro before the price disparity increases even more, and sell their investments when the Euro becomes even higher than it is now. I guess now would be a good time for Americans to invest in the Euro before the price disparity increases even more, and sell their investments when the Euro becomes even higher than it is now.

]]> By: Trevor Sun http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3100 Trevor Sun Sun, 28 Oct 2007 05:40:48 +0000 http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3100 That really sucks for American citizens who now face higher prices but I guess they had it coming ever since they went into Afghanistan. All those years of spending gone into the war effort in Afghanistan and Iraq and what do they have to show? Didn't find any weapons and Iraq's future is looking grim. But at least other countries are benefiting from this, and after all those years the Canadian dollar is worth more. booya That really sucks for American citizens who now face higher prices but I guess they had it coming ever since they went into Afghanistan. All those years of spending gone into the war effort in Afghanistan and Iraq and what do they have to show? Didn’t find any weapons and Iraq’s future is looking grim. But at least other countries are benefiting from this, and after all those years the Canadian dollar is worth more. booya

]]> By: Chris Seah http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3093 Chris Seah Sat, 27 Oct 2007 10:00:20 +0000 http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3093 This is interesting. It is true that a depreciation of the U.S. dollar versus the Euro bodes well for American industry in Europe. However, WITHIN the US itself, foreign products would become more expensive due to the new exchange rate! While residents of Europe enjoy lower-priced American-made cars or iPods, for example, Americans would be subject to higher prices on foreign cars, which constitute a large part of the U.S.'s auto industry. Long story short: Weak US dollar = Good for world that likes to buy American goods... Bad for Americans who want foreign goods. Nyaah. This is interesting. It is true that a depreciation of the U.S. dollar versus the Euro bodes well for American industry in Europe. However, WITHIN the US itself, foreign products would become more expensive due to the new exchange rate! While residents of Europe enjoy lower-priced American-made cars or iPods, for example, Americans would be subject to higher prices on foreign cars, which constitute a large part of the U.S.’s auto industry.

Long story short: Weak US dollar = Good for world that likes to buy American goods… Bad for Americans who want foreign goods. Nyaah.

]]> By: kevin ma http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3089 kevin ma Sat, 27 Oct 2007 02:52:50 +0000 http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3089 Like everyone said, the USD losing its value will lead to a more balanced in trade. However, it will affect the American citizens greatly. As the USD loses its value, the american citizens are getting poorer. I agree with Charlie that it is not a good tradeoff. I think it is safer to have a fixed value for your currency like China. Like everyone said, the USD losing its value will lead to a more balanced in trade. However, it will affect the American citizens greatly. As the USD loses its value, the american citizens are getting poorer.

I agree with Charlie that it is not a good tradeoff. I think it is safer to have a fixed value for your currency like China.

]]> By: Charlie.Gao http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3088 Charlie.Gao Fri, 26 Oct 2007 11:37:30 +0000 http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3088 my parents were talking about how the dollar was slowly declining and how that sucks because my parents get paid with usd rather than rmb, and once u convert the usd into rmb, you get less than what you would have gotten a year ago. and although there will be a more balanced trade, i predict that unemployment in america will slowly begin to rise and that really isnt a fair tradeoff. my parents were talking about how the dollar was slowly declining and how that sucks because my parents get paid with usd rather than rmb, and once u convert the usd into rmb, you get less than what you would have gotten a year ago.

and although there will be a more balanced trade, i predict that unemployment in america will slowly begin to rise and that really isnt a fair tradeoff.

]]> By: Conrad Liu http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3080 Conrad Liu Thu, 25 Oct 2007 17:53:57 +0000 http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3080 Yeah, it's kinda scary how, like many others said, one change in value in one type of currency like the U.S. dollar can have a huge impact on many other affairs of economics. I'm sure there are more exploitations that people will be using if the USD really starts to depreciate in value. Yeah, it’s kinda scary how, like many others said, one change in value in one type of currency like the U.S. dollar can have a huge impact on many other affairs of economics. I’m sure there are more exploitations that people will be using if the USD really starts to depreciate in value.

]]> By: timothysun http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3076 timothysun Thu, 25 Oct 2007 16:28:10 +0000 http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3076 I always had an idea from this. I was wondering if, since for example, Person A's salary was in USD, that he deposited it all into RMB, and when the USD was at its minimum, the person switches to USD. Then, he would make some money. But I think the banks probably have outsmarted me already, by adjusting this. I find that the war in Iraq is much to blame, though, for this inflation. At least we're not in the situation of Hungary post-WWII. I always had an idea from this. I was wondering if, since for example, Person A’s salary was in USD, that he deposited it all into RMB, and when the USD was at its minimum, the person switches to USD. Then, he would make some money. But I think the banks probably have outsmarted me already, by adjusting this.

I find that the war in Iraq is much to blame, though, for this inflation.

At least we’re not in the situation of Hungary post-WWII.

]]> By: judychen http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3070 judychen Thu, 25 Oct 2007 14:38:20 +0000 http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3070 I have read an article about the decline of USD before, and it even said the value of USD won't go up soon in the future. I think the USD's decline in value really hurts America since USD has always been people's preferring currency to deposit. I have read an article about the decline of USD before, and it even said the value of USD won’t go up soon in the future. I think the USD’s decline in value really hurts America since USD has always been people’s preferring currency to deposit.

]]> By: Alice Su http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3060 Alice Su Thu, 25 Oct 2007 13:27:03 +0000 http://welkerswikinomics.com/blog/2007/10/23/the-us-dollars-decline-in-value-may-cause-more-harm-than-good-for-the-us-economy/#comment-3060 It's interesting how one single factor- declining value of American currency- can lead to soo many effects in not only the American economy, but in that of the whole world. It may be true that the USD's decline in value will lead to a better balance in trade as US exports more; however, the increased cost and loss that this inflicts on the U.S. economy is definitely not worth it. It’s interesting how one single factor- declining value of American currency- can lead to soo many effects in not only the American economy, but in that of the whole world. It may be true that the USD’s decline in value will lead to a better balance in trade as US exports more; however, the increased cost and loss that this inflicts on the U.S. economy is definitely not worth it.

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