Quote:
Originally Posted by Nixon
A weak dollar has been pushed as the solution to the trade deficit by the Bush administration. Bush policy affects BMW owners by intentionally making BMW's more expensive in relation to Fords, Chevy's, and Dodges. This is not a mistake, or the will of the market. This is a calculated Bush monitary policy decision to use a devalued dollar to push sales of US cars and other US products by giving US manufacturers a market advantage against companies like BMW.
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You obviously know what you're talking about and have a firm grasp on economic principles.
What I'm left wondering is: What IS the "right" thing for the president - any president - to do with regard to this situation? If the president pushes a strong dollar, thereby making BMWs more affordable to all of us here on this board, the Big 2.8's UAW employees are going to scream bloody murder and claim that the government is not doing enough to "protect their jobs".
Now, I personally think that that's a problem that the domestic auto makers need to solve on their own by designing, building and supporting products that can compete in the free market - WITHOUT government intervention in economic policies artificially propping their companies up. But it is easy for me to take that stance. Not so easy for the president of the United States, who has a constituency made up of the entire nation, to take that stance. If our next president is a Democrat, you can bet that the current policy of a weak dollar will be continued in order to protect all of those UAW employees who donate money to Democrat candidates.