Whose Afriad of the Falling Dollar

There is plenty of hang wringing over what a weaker dollar portends for the US. Will it impoverish us? Reduce us to third-world status? End the US growth machine.

I am perhaps alone in thinking its one of the best things that could happen to the US. The big problem for America going forward is not growth. Its not entitlement spending. As much as I bemoan it, its not even directly our poor K12 educational system.

Its that an America with a strong university system, a strong financial infrastructure and a strong dollar has little use for strong backs. In the long run that's a good thing, but in the long run we are all dead.

Today, its a heartbreaker.

Its heartbreaking to see Americans who just don't have the financial or intellectual capital to compete in modern America fall behind.

Its also scary.

Its scary to see protectionist sentiment rise and the spectre of class warfare haunt Capitol Hill.

A falling dollar could change that. It could make American industry competitive. It will unwind the growing current account deficit - a process that while not without pain is also not without merit. It would not be such a bad thing for those of us who have done well to cut back in favor of gains among the working class.

And, it would be a great thing for that to happen through natural market mechanisms than government regulation or ill fated attempts at moral suasion.