On the bright side, this will make our products cheaper for other countries to buy increasing our exports and make it more expensive to buy overseas goods.
That sounds like a banana republic.
Right. The flip side of that scenario is that American products will be made in heavily automated plants with very few employees anyway.
“On the bright side, this will make our products cheaper for other countries to buy increasing our exports and make it more expensive to buy overseas goods.”
Hi—Your point is a good one but must be hedged a bit.
This is the traditional argument, that is, devalue the dollar and the cheaper price increases exports. But, if you are largely a service economy you aren’t exporting as many goods as manufacturing economies. If your raw materials are imported, your costs rise and any advantage is reduced. If there is foreign competition for your products and despite the dollar devaluation, the competition still has a labor cost advantage (think China), then you can’t win that game until your labor costs go much lower than is possible.
The devaluation argument doesn’t have the power it had before globalization.