Quote:
Originally Posted by MikeWaters
Ok genius, I don't see how that has anything to do with a weak dollar. Other than it argues that a weak dollar HURTS the poor. It's saying cheap chinese imports have helped the poor.
A weak dollar makes those cheap imports more expensive, thereby HURTING them.
Please correct me where wrong.
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~Sigh~
We import a lot more from China than export. That causes inequality because working jobs and income are shipped to China while CEOs benefit.
If you read the article closely, trade with China accounts for 1/2 the inequality caused by all trade. Therefore, studying China gives you a good sample.
The study says, it also makes goods cheaper for the poor.
But making goods cheaper for the poor offsets only 1/3 of the inequality from lower wages/lost jobs.
So our trade deficit (importing more than exporting) has on net created more inequality. The poor on net worse off.
If imports are cheaper, we get more imports and less exports. Lower prices for the poor aren't enough to offset their lower incomes.
If the dollar is weaker, we get more exports, hence the opposite effect.