I think this, along with augmented production systems requiring fewer workers, is why this factory is being contemplated.
I think this, along with augmented production systems requiring fewer workers, is why this factory is being contemplated.
The dollar climb has boosted American purchasing power dramatically. That is especially important for a nation that imports as much as the US does.
Americans can buy more with their wages than they could prior to the dollar climb. That covers nearly every economy the US imports from, as the dollar has gained against essentially every currency on the planet. Simultaneously, real wage growth has been outpacing inflation for years now and is set to continue to climb at an accelerating pace due to a dramatic decrease in labor slack in the last five years.
Real American wages increase with the dollar
I don't follow. I can see how the wage earners' buying power for imports improves with the dollar's rise against corresponding foreign currencies, but not a generalized wage increase.Net-net, it'd be hard to say what happens long term in the economy because that has a lot to do with long-term changes in the macro environment, if economic growth remains strong consumers will continue to make out better, if the strong dollar ultimate hurts the economy (and that isn't impossible), a weakening economy hurts consumers more than the stronger dollar.