You may not have realized it, but if you plan on vacationing in Switzerland, don't plan on your dollar buying you as many blocks of cheese as it once did.
The dollar has been hovering around all-time lows in value versus the euro, and is not real strong against other currency, either. It seems that other countries are a little worried about our budget deficits, despite the assertion by U.S. Treasury Secretary John Snow that the U.S. is for a strong dollar.
This is proof that the spiraling deficits can have a negative effect, but don't be so sure that the Bush administration is just ignorant to this phenomenon. More likely, this is just another part of our perfect Republican economy.
Lower value for the dollar allows products exported by American manufacturers to compete better. On the other hand, imported goods cost the consumer more. If you believe in trickle-down economics (aka the rich get richer), which do you like better -- helping the corporation, or the consumer?
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