weak dollar = more U.S. jobs?

Wouldn't it make sense that as the dollar becomes more devalued versus say the Euro, European companies would be more inclined to move factories to the U.S. to take advantage of tax incentives plus a weaker dollar in regards to manufacturing?

 

Look at the performance of the US Dollar since 2000
then look at the unemployment levels in the USA

There's your answer.

A weak Dollar is not in our interests...

 

Yes, but the weakening of a currency never translates into prosperity for that country.

 

Well I'm not saying it has a direct or immediate correlation since there are other factors over a period of time, I'm speaking over a longer period of time.

All the layoffs that are happening now aren't because the dollar has weakened. In fact many U.S. companies are saying they are beating earnings based on exports, which shows that if it wasn't for a weak dollar, even more people would probably have been laid off due to a lack of exports.

 

Yes, which is why China pegged their currency to the USD.

 

In order for it to regain manufacturing jobs, it must weaken against Asian currencies that have taken the jobs in the first place. Those currencies are pegged to the dollar, and their governments are weakening them at near the same rate as the USD is weakening.

So there's no manufacturing costs to be saved.


edit: krazykarl beat me to the punch.

 

That's not your answer, because you haven't held every other variable out there constant. There do exist such things as confounding variables.

I could just as easily say that there would be even fewer jobs out there if the dollar held all of its value since 2000.

 

Boy, we're a bored group of guys aren't we. Bunch of messages within 2 minutes.

 

You are correct. You could say that.
I wouldn't.

I'm not saying it's an exact science, but rapidly depreciating currency cannot be good for employment.

 

The U.S economy is based on debt... finding people to finance it will get harder as the USD falls, especially if it doesn't mean revert soon...

And in order to create U.S jobs, the economy needed a lot of debt to create less and less jobs..... its clear that a low USD doesn't work out.

The idea that somehow the U.S will owe less money if they devalue or let it fall doesn't pan out either, because the first comment is much more of an immediate and thorny issue than servicing the longterm US debt.