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!).