Thursday, November 20, 2014
Cat Potts, Chapter 11, Question
We have all heard the phrase "mo' money, mo' problems" thrown around at some point or another. I think that as a society, we are more concerned with the amount of money that we have rather than what it is actually worth. In Chapter 11, Wheelan raises the interesting idea of what the value of money really means, and that low value isn't always a bad thing. For example, on page 251, Wheelan describes a scenario in which the American dollar value declines. However, in foreign markets, this can actually be beneficial- the prices of our goods (such as Ford cars) looks better compared to that of markets in which the value of the dollar is stabilizing or going up. Therefore, the sales of Ford cars increases, the company makes money, thus raising the amount of money of the company and, if I'm tying this together correctly, the national GDP. Americans have a tendency to panic when we're not in first place, but if you stop and think about it, sometimes being a little behind can actually be a good thing.
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