March 3, 2008

In Praise Of A Strong Dollar

There’s no doubt that Republicans are looking weak on the economy, and the economy is turning into a more important issue in the election than the war. Larry Kudlow convincingly argues that a strong dollar should be a centerpiece of McCain’s economic platform. A strong dollar is anti-inflationary, and inflation is the biggest danger facing us with regards to the upcoming recession – bigger than the foreclosure crisis, which will correct itself in a year or so if the government does nothing about it. A strong dollar makes trade more favorable to the U.S. and therefore makes trade deficits easier to balance. A strong dollar makes Americans richer. And it sounds patriotic.

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