Economic Ideas

When is 60 a Good Grade?

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  1. Anonymous says:

    Obama has said that he wants to double US exports, but the fact that we are better at creating the types of goods you mentioned makes this not as simple as depreciating our currency or pressuring countries like China to appreciate theirs (both of which we’re doing). Things like health care technology, aircraft, and space-related equipment tend to require inputs we import from abroad. That is significant because when the US devalues its currency (though this is never official policy, of course) its effect on our exports is not as simple as if we were still exporting buttons or other simple products. At a minimum, a lower US dollar promotes simple exports, which tend to have lower paying jobs, more than complex exports. How much the US’s technologically advanced exports benefit depends on the increased cost of raw materials they get from abroad.

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