Sunday, April 13, 2008


One of the big talking points by administration economic cheerleaders is that a falling dollar is really really good for the economy because it boosts exports. And that's true although we make a lot fewer things to export lately. But exports are only half of the equation. Unfortunately a lower dollars increases the price on imports:

Take a shopping trip to Costco and Walmart. Walk through the isles and see how many items are produced outside the U.S. Now remember that those items, on average, are up an average 14% over last year. Also remember that the government statistics don't report the "headline" inflation number correctly. No wonder consumers feel squeezed.

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