so we should destroy our economy to save theirs? wouldn't it be easier to just seal the border to illegal entry?
Equalizing our dollar with something like the Peso would actually save ours in the long run. The value of the USD is an arbitrary value anyways. It's not even close to be actual. And the inflation numbers they use are arbitrary as well.
And no one would be losing any value if the USD's value was reset.
Which would you rather have.
1. $100 that buys $10 worth of stuff
2. $10 that buys $10 worth of stuff
If you got paid 80% LESS per week and it paid for the same exact things that you pay for now, what would it matter?
Here's where it does matter. (2 examples)
ATM, Mexicans come to the USA and get paid something like $10 per HOUR. Where as in Mexico, they're making $20 per DAY. (minimum wage in MX is $7 per DAY (not hour)
If $20 per day was a decent wage here also, what would be the benefit of coming here? Free healthcare? They have that in Mexico.
Example #2. American companies outsource jobs because it's much MUCH cheaper to pay the above foreign wage, than what Americans have to have here, just to stay afloat. And so, we lose jobs. There's a lot of industries that have left this country simply because the overhead is just too high for them to compete on the global market.
We not longer make many clothes, no TV's or cell phones anymore. There's only 1 computer company still here in the USA. The list of industries that have left or outsourced a LOT of our jobs is (in the last decade or two) is a long one.
Reducing the amount of wages will bring a LOT of those jobs back. Those companies could afford to manufacture here again, and still compete globally.
Let's do some math, shall we?
1 company of 500 employee's. 40hr week. (Benefits not included)
American company at the national blue collar wage average.
$25.66 per hour X 40hrs = $1026.40 X 500 employees = Per week $513,200. X 50 weeks $25,660,000.
Mexican company with the same criteria: (A manufacturing employee in Mexico usually earns around
22,700 MXN per month (USD 1135.75).
$1135.75 per month X 500 employees = 567,875 X 12 months = 6,814,500
$25,660,000 - $6,814,500 is a savings of $18,845,500.
If the USD was equalized, and that same $1135 per month bought you the same as what $4,400 bought, then what difference would it make to anyone here in the USA? But it would make a huge difference in where American companies could manufacture. In fact, it would be cheaper to manufacture here in the USA, because they could save on shipping charges they paying to bring those products to the USA.
It's a win win for the USA, no matter how you slice this.