“Because a strong dollar lowers the price of imports and raises the price of exports, it gives foreign companies an advantage over American competitors and can drag down U.S. employment.” Those are the words of Noam Scheiber, a business writer for the New York Times. The 19th century political economist Frederic Bastiat would have had some fun with Scheiber’s confidently stated, but untrue assertion.
The idea that nirvana would follow Treasury devaluing the dollar is a tad simplistic, and blind to the unseen that Bastiat always urged economic thinkers to keep top of mind. Maybe Scheiber just faced a hard deadline.
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