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The last option to stop the outsourcing of American jobs: a dollar collapse.

Zalatix

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Putting the unlikelihood of international hyperinflation of the US dollar aside...

Please explain scenarios in which a collapsed dollar would result in a maintained or increased rate of American jobs being outsourced abroad. How would this be possible?

Furthermore, what country would try to keep pegging their currency if the US dollar cratered?
 
An official devaluing of the currency would do it without "international hyperinflation". I really do not care if people peg their currency to the dollar or not.

How it works is that labor becomes relatively cheaper through the exchange rates so foreign investors invest in manufacturing expansion in the US.
 
Putting the unlikelihood of international hyperinflation of the US dollar aside...

Please explain scenarios in which a collapsed dollar would result in a maintained or increased rate of American jobs being outsourced abroad. How would this be possible?

Furthermore, what country would try to keep pegging their currency if the US dollar cratered?

horrible idea,your basically advocating increasing jobs by making every poor and devaluing the currency.raw materials do not drop in price reguardless of currency,neither do things like food which are bought and sold internationally as commodities.

end result you would only make labor cheaper,but make the american people poorer.so in effect a car that costs 30k would drop due to decreased labor costs,but the materials to make it would still be set by international supply and demand,therefore a massive devaluing of currency would give americans a smaller paycheck than now,and make goods too expensive for them to buy.

ofcourse poor currency works so well,as seen with china,where the average worker would have to save formonths to buy an iphone,just the shear cost of materials alone would make such almost unbiable nomatter how cheap the labor producing it.
 
horrible idea,your basically advocating increasing jobs by making every poor and devaluing the currency.raw materials do not drop in price reguardless of currency,neither do things like food which are bought and sold internationally as commodities.

end result you would only make labor cheaper,but make the american people poorer.so in effect a car that costs 30k would drop due to decreased labor costs,but the materials to make it would still be set by international supply and demand,therefore a massive devaluing of currency would give americans a smaller paycheck than now,and make goods too expensive for them to buy.

ofcourse poor currency works so well,as seen with china,where the average worker would have to save formonths to buy an iphone,just the shear cost of materials alone would make such almost unbiable nomatter how cheap the labor producing it.
So which do you want? Half the populace unemployed or imported goods that are too costly to buy?

You are running out of other options.

Oh and what makes you think we ran out of raw manufacturing materials in America?
 
So which do you want? Half the populace unemployed or imported goods that are too costly to buy?
Are there any options in the middle which you have excluded?

Oh and what makes you think we ran out of raw manufacturing materials in America?
This is like the people who say we should drill in the US so that we can get cheaper oil.
Things which have an international market have their prices set by that marketplace.
 
So which do you want? Half the populace unemployed or imported goods that are too costly to buy?

You are running out of other options.

Oh and what makes you think we ran out of raw manufacturing materials in America?

half the country isnt unemployed,nor is in fear of.second why would america sell raw manufacturing materials cheaper than their international value.countries like china sell their steel cheaper because its of lower grade,not because their currency has less value.selling raw materialsfor less than their true value is like trading a dollar for a quarter.


finally degrading currency has never been a good idea for any industrialized country,as it lowers buying power,makes goods both foreign and domestic more expensive,and risks a currency war in which every country races to the bottom to be the poorest in order to gain the most manufacturing,while losing everything else.
 
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