NPR Warns that Not Raising the Debt Ceiling Will Increase Net Exports and Create Jobs

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Friday, 22 July 2011 04:07

That was the local news spot at the top of the hour on Morning Edition (WAMU). The anchor said ominously that a failure to raise the debt ceiling would lower the value of the dollar. Of course those who know economics all gave a big cheer at that one and immediately sent a note to their representative in Congress urging default (okay, not those of us who live in DC).

Anyhow, the extent of confusion on the dollar in the media is truly incredible. Do you want our goods to be less competitive in international markets? Then you want a higher valued dollar. It's pretty much that simple. Alright, it's not quite that simple. If you have enough political power so that the government largely protects you from foreign competition (e.g. doctors, lawyers, economists) then you might want a high dollar because this will depress the wages of people who work for you. I suppose the concern for the fall in the dollar tells us about NPR's audience here.