Guardian economics again

Getting it the wrong way around:

The US is by far the largest importer, and its demand has been hammered. The current strength of the dollar will go some way towards offsetting the fall in American consumption. A more valuable dollar makes it more attractive to export to the US.

No, a stronger dollar makes it more attractive to import into the United States. People paid in USD now get more hours of other peoples’ labour for the same amount of their own.

The end effect is the same, more exports to/ imports into the US. But if you get cause and effect the wrong way around you’re never going to make sense of things.

2 thoughts on “Guardian economics again”

  1. One day, maybe many years from now, The Guardian will finally get one statement on economics correct. Unfortunately they will then be called “Nazi’s” and “Tory mouthpiece” and be forced to flee to the fun side of the internet to join us.

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