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eleanoraquitaine · #8 (**permalink**) 03-26-2008, 10:23 AM

Quote:

Second, there is linkage between the President and the falling dollar at this point. Iraq has a large role in the relative strength of our market. The war has cost by the most conservative estimates, at least 800 billion dollars. That debt is perceived as instability, as weakness. Instability causes investors to shy away from potential markets. The Iraq war belongs to Bush, therefore some of the weakness of the dollar can be attributed to his decisions. As the dollar falls in a globalized market, real cost of imported goods rises, which causes your own dollar to fall even shorter. Volatility in the price of oil has certainly been affected by increased instability in the middle east due to our invasion of Iraq. Bush's choice to invade Iraq has weakened the dollar.

This is a valid point. However, the weakness of failing to do anything about Saddam's regime would certainly have affected the price of oil as well, especially given Saddam's efforts to gain greater control of world oil supplies through military invasion and in the larger context of the rise in global islamofascism. Bush has favored tax cuts and pro-business policies which counter the cost of the Iraq war. And, money spent in Iraq is an investment that will clearly pay off in beneficial trade agreements and opening up a large, new, democratic market for us.

The best way to improve our economy is by helping the middle class and restoring the American dream by drastically reducing entitlements, taxes, and federal, non-defense spending.