Not stating my opinion yet.
2007-09-07 01:48:51 · 5 answers · asked by searcher_2005 2 in Social Science ➔ Economics
The exchange rate is not a measure of relative wealth because the value a of currency unit is arbitrary. If you used the US penny to compare instead of the dollar it would have no effect on how rich or poor we are. The recent shift in the exchange rate however does decrease the well being of people in the US because imports will cost more and our labor is worth less in the world market. To compare countries economic wealth GDP per capita is usually used. See
http://www.nationmaster.com/graph/eco_gdp_percap-economy-gdp-nominal-per-capita
2007-09-07 03:41:26 · answer #1 · answered by meg 7 · 0⤊ 0⤋
In most cases the currency exchange rate has little to do with the wealth(well being of a nations people) of a country. My first trip to Jamaica in the early 1970's had me paying about 1.20$ US for 1J$, the country was extremely poor. Last time I went there it was 1$US for 46$J and on the streets 1$US to 50J$ and the country had the appearance of a much more prosperous people on the street. Japan has an exchange the is hovering around 105Y to 1$. Inflation is a better indicator of economic strength(Zimbabwe). The average Canadian isn't poorer than the average American because of currency value. The average Canadian is poorer because the Canadian government steals a great deal of the average Canadians income through confiscatory tax policy.
2016-05-18 21:13:15 · answer #2 · answered by valencia 3 · 0⤊ 0⤋
Not necessarily. Having a low dollar value is very good for exporting goods as to the US, they are a bargin. It can be good for tourism also.
I remember when the canadian dollar was stronger than the US dollar, I had to travel there on business. All I can say, is thank goodness the company ways paying for my trip because the hotel bills were outrageous. But if the CD is lower now, I might just consider a trip to Windsor.
2007-09-07 01:58:03 · answer #3 · answered by Fancy That 6 · 0⤊ 0⤋
Evidently you haven't seen the exchange rate lately...the Canadian dollar and the American dollar are pretty close to the same right now. Before the Bush administration it was a 50% exchange rate...now I don't think it's even 5%. The US is the country that's becoming poor right now!!!
2007-09-07 01:58:25 · answer #4 · answered by auntcookie84 6 · 0⤊ 1⤋
Canadians are better off Regardless of the value of our dollar or theirs because they have FREE health care--see the documentary SICKO!
Americans are the poorer and unhealthier to boot!--sucks for us.
Further-- France, Cuba and England also have FREE health care for all their citizens.
visit http://wwunited.org
2007-09-07 03:41:24 · answer #5 · answered by Anonymous · 0⤊ 0⤋