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A weaker dollar can stimulate the economy in ways that trickle down positively:
  • Boost to Exports and Jobs: U.S. goods become cheaper abroad, potentially increasing exports by 5-10% and adding 200,000-500,000 manufacturing jobs (e.g., in autos, machinery). This supports consumer spending via higher wages in trade-sensitive regions like the Midwest.
  • Economic Expansion: Studies (e.g., NBER) show a 10% depreciation correlates with ~8% GDP growth over 5 years, via higher consumption and investment in pegged economies. For consumers, this means potential wage gains (1-2%) outpacing inflation long-term.
  • Tourism Inflow: Foreign visitors spend more in the U.S. (e.g., +15% from Europe), creating service jobs and local revenue that could lower some domestic prices via competition.
  • Investment Shifts: Multinationals repatriate more profits from abroad (e.g., +5-10% for firms like Apple), funding U.S. hiring or dividends that benefit stock-owning consumers.
 
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