The Strong Dollar Is Keeping America Down

Fight disinformation: Sign up for the free Mother Jones Daily newsletter and follow the news that matters.


Ana Swanson writes today that China’s devaluation of the yuan is hardly unique. Everyone is devaluing these days:

Since hitting a low point in mid-2011, the U.S. dollar has risen by about a third against a basket of global currencies; in just the last year, it is up 20 percent. Patrick Chovanec, chief strategist at Silvercrest Asset Management, says the dollar’s strength already shaved around two percentage points off U.S. economic growth in the first quarter of this year.

The dollar is up against both the euro and the yen thanks to our relatively strong economy. “Relatively” is the key word here: the American economy may be doing better than a lot of others, but it’s still growing at the fairly unimpressive rate of 2-3 percent annually.

This highlights a problem for the next president that won’t be solved by bluster: there’s a limit to how much our economy can grow if the rest of the world is mired in a slump. This is one of the reasons the Fed should stay cautious about raising interest rates. It’s not just that the recovery remains fragile; the entire global economy remains fragile. This is not a good time for experiments just to appease inflation hawks.

LET’S TALK ABOUT OPTIMISM FOR A CHANGE

Democracy and journalism are in crisis mode—and have been for a while. So how about doing something different?

Mother Jones did. We just merged with the Center for Investigative Reporting, bringing the radio show Reveal, the documentary film team CIR Studios, and Mother Jones together as one bigger, bolder investigative journalism nonprofit.

And this is the first time we’re asking you to support the new organization we’re building. In “Less Dreading, More Doing,” we lay it all out for you: why we merged, how we’re stronger together, why we’re optimistic about the work ahead, and why we need to raise the First $500,000 in online donations by June 22.

It won’t be easy. There are many exciting new things to share with you, but spoiler: Wiggle room in our budget is not among them. We can’t afford missing these goals. We need this to be a big one. Falling flat would be utterly devastating right now.

A First $500,000 donation of $500, $50, or $5 would mean the world to us—a signal that you believe in the power of independent investigative reporting like we do. And whether you can pitch in or not, we have a free Strengthen Journalism sticker for you so you can help us spread the word and make the most of this huge moment.

payment methods

LET’S TALK ABOUT OPTIMISM FOR A CHANGE

Democracy and journalism are in crisis mode—and have been for a while. So how about doing something different?

Mother Jones did. We just merged with the Center for Investigative Reporting, bringing the radio show Reveal, the documentary film team CIR Studios, and Mother Jones together as one bigger, bolder investigative journalism nonprofit.

And this is the first time we’re asking you to support the new organization we’re building. In “Less Dreading, More Doing,” we lay it all out for you: why we merged, how we’re stronger together, why we’re optimistic about the work ahead, and why we need to raise the First $500,000 in online donations by June 22.

It won’t be easy. There are many exciting new things to share with you, but spoiler: Wiggle room in our budget is not among them. We can’t afford missing these goals. We need this to be a big one. Falling flat would be utterly devastating right now.

A First $500,000 donation of $500, $50, or $5 would mean the world to us—a signal that you believe in the power of independent investigative reporting like we do. And whether you can pitch in or not, we have a free Strengthen Journalism sticker for you so you can help us spread the word and make the most of this huge moment.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate