More Talk of the US Dollar on the Slide

October 15, 2007 by Lisa Oshima | Consulting, Developers, Enterprise

In my last post, I talked a bit about what the decreasing value of the dollar means for social media start-ups.  Yesterday in Tech Crunch, there was an interesting article on who is “winning” and “losing” as a result of the dollar on the slide.  It is well worth a read, offering an interesting and valid short-term perspective on the impact of the fluctuation of the dollar.

I hope that we’re only seeing a short-term devaluation that will turn around in 2008 with the promise of a change of administration (and hopefully war and economic policies), but if I’m wrong, the number of “losers” (to use Tech Crunch’s term) will increase.   By way of example, most of the 3rd party mobile developers I’ve worked with abroad do business in Dollars but have to pay rent, expenses, etc. in Pounds or Euros, and they’re feeling the pinch.  If the dollar’s downward spiral continues, this could mean a decrease in innovation and/or an increase in cost of goods worldwide.

In addition, anyone (like me) who is based in the US but does business with companies abroad and/or frequently travels abroad is feeling the pinch with increased operating and travel costs.  I could go on (and on), but I’m feeling a little nauseous thinking about it, so I’ll continue to think optimistically in the hopes that things improve (or that I find a way to get paid in Pounds!).

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  • Interesting article on Tech Crunch … its a slippery slope, this can lead to a “is the current government to blame” discussion and should they be doing more to prop up the $?

  • You're right – There are a lot of forces at work with regard to the state of the dollar. While governments do play a part in a country's economic health, in most cases, a government cannot be wholly blamed or credited with the state of their country's economy (including the valuation of its currency). By the time the US election happens, we won't have had a presidential leadership change in 8 years (a LONG time by American standards). Regardless of whether a democrat or republican wins the presidential election, my hope is that a change of leadership will shake things up and instigate positive economic changes for the US.

  • Agrreed. Change is can always be a catalyst for this to shake up!



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