Value of a dollar.

[Sis]

Perhaps all the America bashing has something to do with it? If our leaders hate us, what faith can the rest of the world have?

We were doing well during Vietnam, too. The economy went bonkers when all the guys came flooding back into the marketplace.

[Chérie]

There's a certain amount of substative proof that funding a war actually boosts an economy.  Just look at WWII. 

I am aware of that Nate. There is a slight difference in WWII  and Desert Storm II. With the second World War, there was an end in sight. 

First, it depends on what point of WWII you were talking about.  There wasn't always an "end in sight" in that war either.  Prior to Hiroshima/Nagasaki, there was no indication that Japan was going to accept the terms of the Potsdam declaration, and they had given every indication that they would fight to the last man.

Either way, it doesn't negate positive economic benefits during wartime.  Jobs are created and certain businesses grow during war time. 

I've yet to see one economist declaring that the war is the cause for the deflation of the dollar.

We shouldn't base our hopes of a good economy on war though.

To me that doesn't make for a stable economy...

[bishopnl]

We shouldn't base our hopes of a good economy on war though.

To me that doesn't make for a stable economy...

No, I agree..but actually, until recently, the economy has been pretty strong (despite the perceptions of most Americans). 

But I'm not advocating war as a means to boost the economy...just saying that I don't really think it's effects are always economically negative, either.

[Chérie]

Yeah, nor did I think you would believe that the loss of lives would be more worth it for the good of the economy. 

[M‡¢ĦÆŁ Ҝ]

..but actually, until recently, the economy has been pretty strong (despite the perceptions of most Americans).

In relation to other currencies, the dollar has been on a fairly steady decline for almost a decade with a sharp decrease in the past year.  Here is what I have personally experienced in exchange rates against other currencies.

Between March 1998 and March 2000 I saw the U.S. Dollar gain strength against the Portuguese Escudo.  In '98 it was $1.00 = 200$00.  By '00 it was $1.00 = 250$00 (numbers are rounded).

Then in March 2000, I moved to Germany and initially saw a strong dollar against the Deutsch Mark with $1.00 = 2.25DM.  The Dollar stayed strong for most of my first year in Germany, with a sharp drop at the beginning of 2001.  A year after moving to Germany, the Dollar had dropped to around $1.00 = 1.90DM.  By December 2001, it had dropped even more with $1.00 = 1.60DM. 

In January 2002, Europe switched to the Euro.  It started off around $1.00 = 1.25€.  Within six months the exchange rate dropped to making $1.00 = 1.00€.  Now the exchange rate is $1.00 = 0.62€.

While the decrease of the U.S. Dollar has been more drastic in the last eight months, it has been decreasing for seven years.

In terms of dollars, my rent has gone from $700 in April 2000 to $1,532 in April 2008 without my landlord ever raising my rent.

[bishopnl]

Michael,

I wasn't speaking of the value of the dollar...I was speaking of the economy as a whole.

Until the last six to eight months, most economists were saying that the economy as a whole was quite strong.

[Chérie]

Michael is the military compensating you for your loss?

If they aren't, do you forsee having to move back to the base?

[M‡¢ĦÆŁ Ҝ]

Michael is the military compensating you for your loss?

If they aren't, do you forsee having to move back to the base?

I do get a housing allowance and a cost of living allowance.  Those help, but they don't cover everything.  I have to convert Dollars to Euros to pay for things such as water, heating oil, electricity, phone, etc. which all add up pretty fast.  If I wasn't moving back to the U.S. in July, I would probably move on base to save money.  As it is, the AF won't let me move on base with less than 12 months remaining.  Not only that, but base housing has less than half the living space my current house has (base housing is apartment style units).

[BenJammin]

I received the following in an e-mail a few days ago and thought it pertinent to this thread.

America voted for change in 2006, and we got it.

A little over 2 yrs ago:

• Consumer confidence stood at a 2 1/2 yr high...
• Regular unleaded gasoline sold for $2.19/gallon...
• The unemployment rate was 4.5%...

Since voting in a Democratic Congress in 2006, we have seen:

• Consumer confidence plummet...
• The cost of regular unleaded gasoline soar to an average of $3.28/gallon (an increase of $.583 from 1 yr ago)...
• Unemployment has risen to over 5% (a 10% increase)...
• American households have seen $2.3 trillion in equity value evaporate (stock and mutual fund losses)...
• Americans have seen their home equity drop by $1.2 trillion...
• 1% of all American homeowners are in foreclosure...

Americans voted for change...and they got it.

BenJammin

[Chérie]

Obviously we can point fingers and blame, at each other all day long. I don't think thats the solution either.

[jdcord]

Not to veer too far off course, or anything, but the whole "wars help stimulate an economy" thing has been soundly debunked (with facts and statistics) by many economists over the years.  Just like this current war, wars slow an economy down, they don't stimulate it.

[bishopnl]

Not to veer too far off course, or anything, but the whole "wars help stimulate an economy" thing has been soundly debunked (with facts and statistics) by many economists over the years.  Just like this current war, wars slow an economy down, they don't stimulate it.

Jd,

I'm going to have to disagree with you.  My wife is an econ major at Washington University here in St. Louis....one of her papers just last year dealt with war and technology...she had multiple sources from various economists, and several of them agreed that war does help, in several ways, to boost the economy.  So I don't think that has been "debunked."