Week 3 EOC

Should America have a strong or weak dollar? This is a question that does not have a simple answer. When times are great we want a strong dollar so we can import more foreign goods and a lower exchange rate, the down fall to this however is that we are spending more money on foreign goods rather than circulating the money into our own economy. Eventually after having a strong dollar for so long inflation will occur and our dollar will weaken. The weak dollar has its downfalls such as higher oil prices which in turn raise the price of fuel and we end up paying more for foreign goods. On the positive the weak dollar encourages us to spend more money in the U.S. and allows other countries to purchase more goods from America which will help our economy. Having a strong dollar or weak dollar both have their positive and negative attributes but once the dollar has been weak for so long I believe we long for it to be strong again. I say this because I have never heard anyone say during good economic times that they wish for a weak dollar yet in poor economic times we strive to be where we once were. In the end we want to be able to pump money throughout the nation to stimulate the economy and with a strong dollar that money is coming from the American people spending more of their hard earned cash and during a weak economy that money is coming from foreign countries purchasing our goods. I think it’s more fun for all of us when we are the ones being able to spend the money with a strong dollar, this also allows the money to be spent on shopping and restaurants which puts the money into the hands of the working middle class who can pay their bills and in turn go out and continue to spend.