Business

Weaker US Economy, Weaker Dollar
by Petra Calovkova

United States and their economy situation is being shaken. But that does not bring along only problems for the country itself, but also the currency is different, which influence also many other people throughout the whole world. Reasons for weakening US economy are numerous. Just to name a few of them, US government is running a budget deficit of $158 billion, they National Debt is around $9.13 trillion, and that will probably lead to increasing of taxes. Furthermore, the global warming is turning their Wheat Belt into desert and so their wheat production is still lower. Universities in United States are expensive and also skilled professors are sometimes a problem, causing less and less graduates, who would be able to succeed on the global market. Generation of babyboomers is retiring recently, so there are less skilled workers. Furthermore, China's economy is growing faster and became a center of a global economy. It is no longer a position of US. The business language is becoming to be rather Mandarin Chinese than English. That is also connected with less investors from foreign countries who are now moving to China. Also wars lead by US are costing them incredible amount of money. It will be soon $1.6 trillion. But that also means care about the soldiers who are injured, governments pays the treatments, those who die there but also those who survive and have benefits for their future. Weaker economy is tightly connected to a weaker dollar. American motorists have to pay more because nations producing oil are setting the prices higher in order to compensate the dollars lower value. US citizens have to spend more money on foreign products, that is followed by higher living costs, and they cannot afford to travel as they could in the past. In addition, US companies have more troubles to enter the foreign market. On the other hand, they find less competitive pressure when keeping prices low in a foreign countries. It is advantageous for tourists to visit US and also do their shopping there. That means that there always will be people who would suffer from the lower value of a dollar and a weaker US economy, but also some, who will take advantage of it. Therefore if you still have some dollars at home, you would be better off when traveling there then trying to exchange them for a different currency.

by Petra Calovkova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

posted by Blog TechSource @ 3:06 PM