Republican economic policies are almost always wrong

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Tsar
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Republican economic policies are almost always wrong

Post by Tsar »

Can someone explain to me why Republican Presidents always make the dollar extremely weak? Honestly...Trump, Bush, and many other Republican Presidents. Gold also rises under Republican Presidents. Is it because their policies are mainly for the rich and corporations but they don't really do anything significant for ordinary people? People say inflation will weaken the dollar but it has done the opposite under Obama and Biden. That's because most economic theories assume a normal economy. The economies of the US, EU, and UK aren't normal because they're interconnected and help support each other. Japan actually has a greater economy than most of the EU nations if it's debt is ignored. The major currencies of the world ensure none of the major currencies will fail and they seem to protect the currencies of some weaker puppet nations or former colonies. Therefore, traditional economic theory applied to 2021 will be wrong about half the time if applied to the Major 4 Economies. This means the Republicans have the wrong views about inflation, increasing the monetary supply, budget deficits, and other economic policies.
"What one should really fear is not a competent enemy, but an incompetent ally." - Napoleon Bonaparte
gsjackson
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Re: Republican economic policies are almost always wrong

Post by gsjackson »

The traditional view of the subject is that the manufacturing industry (assuming the U.S. still has one to speak of) has always been a Republican constituency. They want the dollar weak so the favorable exchange rate will allow them to sell their stuff abroad. Whether or not this analysis still applies during the insane, reality-turned-on-its-head times in which we live, I don't know.
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Tsar
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Re: Republican economic policies are almost always wrong

Post by Tsar »

gsjackson wrote:
November 25th, 2021, 5:48 am
The traditional view of the subject is that the manufacturing industry (assuming the U.S. still has one to speak of) has always been a Republican constituency. They want the dollar weak so the favorable exchange rate will allow them to sell their stuff abroad. Whether or not this analysis still applies during the insane, reality-turned-on-its-head times in which we live, I don't know.
I don't think US manufacturing can actually compete because since European and Japanese recovered a decade or two after WWII and many other nations have their own factories now, it's not really possible for any nation to greatly compete. The idea of a dollar helping manufacturing is a myth because most products aren't even manufactured in the US and most products abroad are manufactured abroad for those markets and most US manufacturing stays in the US (and some goes to Canada).

Maybe US alcoholic beverages are somewhat common to find abroad but those are things that might get sold anyway. Military manufacturers that can sell to allied nations in NATO or Israel don't need to be concerned about price.

I don't really see how a weaker dollar would actually help US manufacturers.
"What one should really fear is not a competent enemy, but an incompetent ally." - Napoleon Bonaparte
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