|
I saw this on another board. Thought it kind of showed the hidden tax we're paying on imports due to Bush's fiscal polices. Talk about a gas tax....
"The economy, and how well it is doing will affect the upcoming election. So I thought I'd see how our dollars are holding up.
The Euro expanded in Europe on 01/01/2002, and I thought that might be a good place to make a comparision between the Euro and the Dollar (as well as the British Pound and the dollar).
1 Euro bought 0.903098 dollars on 01/02/02
1 Euro bought 1.0361 dollars on 01/02/03
1 Euro bought 1.2592 dollars on 01/02/04
1 Euro buys 1.1923 dollars on 04/13/04
1 British pound bought 1.4451 dollars on 01/02/02
1 British pound bought 1.5975 dollars on 01/02/03
1 British pound bought 1.7902 dollars on 01/02/04
1 British pound bought 1.816 dollars on 04/13/04
Now what do these figures tell us? They tell us that a Euro was worth about 90 cents in January of 2002, but is now worth about 1.19. It tells us that the British pound was worth 1.44 in January of 2002, but is now worth a 1.81.
In other words the values of foreign currencies has strengthed while the dollar has dramatically weakened. How does that affect us? Well, primarily in terms of buying power and specially in terms of imports....gas prices anyone?
You got it. Those prices going up and up are reflections of our weakening dollar abroad. We've lost 47 cents on the pound on a little over two years and about 29 cents on the Euro. That means we pay more for Opec imports because our dollar doesn't buy as much.
Now with wages stagnant, we in essence are paying a hidden tax for the devalued dollar. And that dollar is primarily devalued because of the massive deficit spending of this administration."
|