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Reply #7: Something to consider when the taxes issue comes up that is often lost in the conversation [View All]

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Home » Discuss » Archives » General Discussion: Presidential (Through Nov 2009) Donate to DU
rpannier Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-03-08 01:34 AM
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7. Something to consider when the taxes issue comes up that is often lost in the conversation
The weak dollar policy of the Bush Admin that would be continued under mcbush is the same as raising someone's taxes.
When the dollar drops, prices on food, domestic products, hygiene items, clothes, services, etc goes up.

example:
The cost of food and gas has spiked. Part of the reason is demand, but another part is the weakness of the dollar. When the value of the dollar drops on the international market, the cost of everything imported becomes more expensive (which is probably 60% or more of what she buys -- made in China).

I hope this helps you a little.
I choose this as one of my examples because there is very little understanding about how money works. It hasn't been vetted on conservative talk radio because it's too complicated an issue to dumb down into 5 words or less.

But when the dollar drops it has the same effect (or worse) of raising someone's taxes because their purchasing power goes down.

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