Let's Have A Strong Dollar?

Over the past week, I've heard a lot of calls for a "strong dollar."

Strong is good, right?

So who is a strong dollar good for?

For that matter, what is a "strong dollar?"

A "strong dollar" is a dollar with a high value relative to other currencies.

For whom is this good?

It's good for China. They get to make lots of stuff and sell it to us, because their prices are lower than our "strong dollar" prices.

It's good for Germany. They don't have to buy as much of our stuff to be able to sell us Mercedes', BMW's and Braun appliances.

It's good for India, Indonesia and Mexico.

Is it good for Americans? A strong dollar would be good for those who travel abroad. When I plan my next trip to Europe,  I want the dollar to be "strong." What I have to spend for hotels and travel, etc. will be lower.

But for anyone in the export business or in the US tourist industry, a strong dollar is bad.

It raises the price to foreigners of American goods and services.

If you are an American and make stuff for foreign markets, you don't want a strong dollar.

If you make stuff for ordinary Americans to buy, you don't want a strong dollar.

If you are a financier, who only makes deals, not product, you do want a strong dollar. It lets you outsource offshore.

It lets you drive down any salaries you have to pay in this country.

If you are in the top one percent, of course a strong dollar is good!