Sunday, May 31st, 2015
The rich people who run this country loved to bang on to the poor about how we were crippled by a high Australian dollar. What they never pointed out was that a low Australian dollar makes just about everything we wear, eat and manhandle more expensive. The average Australian punter is an importer.
A high Australian dollar makes for lower import cost – consider your dollar exchange on Amazon purchases. Most business in the World is done in US dollars. So, while exports are expensive – imports are more affordable.
A low Australian dollar makes exporting more viable. We can sell things cheaper on the International market. Primarily we’re talking about poor old mining magnates. Yes, I know there are a lot of smaller businesses exporting and that international trade is important. But the bottom line is a lowering Australian dollar makes life for the average punter more expensive.
There’s a trade-off. We need a dollar priced low enough to be competitive, while we have it high enough we can afford goods and services from overseas.