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The issue is the cost of producing goods has risen, and the cost of labor has stayed the same within the U.S. While we may ship more goods because of the price levels others are getting off of us right now, you have to deal with the shrinking margins and unless you are willing to raise your prices abroad you have to ship more to realize the same revenue. Without tax penalties for US corporations that produce overseas and ship back into the US, there is no reason for them to be here. You want to operate on a cost level from the stronger currency market to reduce operating costs., and then get the benefit of selling from the weaker currency market without paying the import taxes for your raw goods. Euro companies are having difficulty competing with the drop in real price of US firms, but they are not losing jobs to us.
The Euro labor market has historically run a higher unemployment rate, but the level is more stable than ours in its reaction to economic indicators.
I guess my hope is that the Fed and Bush will get serious about incentives - be they stick or carrot - to U.S. companies to get the jobs back here. The "jobless recovery" our economy has enjoyed isn't helpful to unemployed workers.
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Oft expectation fails...
and most oft there Where most it promises
- Shakespeare, W.
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