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Monday, April 28, 2008

Is the Dollar Too Weak or Strong?

Whenever the dollar becomes particularly strong and we can travel around the world for a song, buy foreign goods for a fraction of what we would pay here, and we become the currency standard for the rest of the world, we begin hearing concerns of the dollar being "too strong." Then when the dollar declines and we can't afford globe trekking, and certain countries start seeing our goods as "cheap", and the Euro begins to look like the future financial standard, we cry the dollar is "too weak."

This is indicative of the way it is with the media. They are never satisfied. More importantly, they don't have a clue of what they are talking about any way. Most journalists are in the bad news business, so when they find the economist that is advocating pro-weak dollar or pro-strong dollar, they simply focus on the one who provides the most negative spin on the economy.

For the record, a strong US dollar is always a good thing. It is better to be able to get foreign goods at a lower cost than here because it shows how valuable our currency is and is bolstered
by a highly productive economy (productivity, in relation to money supply is the primary factor for a dollar's value). A strong dollar is a good thing and knowing that is part of all our responsibility, since the media has abdicated reporting such.

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Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

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2 Comments:

Anonymous James from DC said...

Journalists need to learn a little simple economics. It is terrible what they write.

9:29 PM  
Anonymous Linda Brown said...

I'm getting killed at the super market. I miss the good old days of low unemployment and even lower prices.

5:48 PM  

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