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Originally Posted by chickentribs
I was responding to your assertion that a weak dollar was a good thing because it would stimulate US exports due to increased purchase power for the EU and Asia. My point was that the rise in our import costs would wipe out any benefit realized on exports seeing how we import at about a 2:1 ratio.
Fair enough about assuming your support for Bush carte blanche. Sorry.
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I would assume that the rising costs of imports would cause an increase in domestic sales, as businesses went to cheaper domestic goods. This would in turn cause less reliance on imports.
And you could counter that many Asian countries still have goods priced far cheaper than domestic, and have government policies that heavily regulate imports regardless of price, and would not increase trade to those nations anyways.
And here I would agree, and then say that the US, EU, Great Britain, and Japan should focus on curtailing the trade irregularities that occur when dealing with countries who don't have the worker protections found in Western industrialized nations (and I know Japan isn't in the west, but their economy functions more like other western economies than the "developing" nations found throughout the majority of Asia).