So on the anniversary of the Euro, an interesting article:
http://www.france24.com/en/20111230-europe-eurozone-ten-year-anniversary-rise-fall-euro-sovereign-debt-crisis
D. and I were discussing this recently and recalling the advent of the Euro in 2002. Initially, the exchange rate was about .90 to the dollar, but within 12 months it was on par, then 1.10 to the dollar, and it has never retreated. I follow the currency daily and keep thinking that the correct value should be about 1.25 but even with several EU countries basically insolvent with Germany and France bailing out the failing EU states, the Euro remains stronger than the dollar. Perhaps it is related to their decisions, necessary and unpopular, to raise taxes, reduce some benefits (i.e. raising retirement ages), etc. Although the US has a much higher retirement age for obtaining government benefits, we simply refuse to raise taxes, and bizarrely cut taxes on wealthy folks who can clearly afford to pay more, gut taxes on corporations etc. Makes no sense to me. Trickle down economics has failed since it was implemented in 1981 as we have seen the growing disparity between rich and poor in our country, loss of manufacturing jobs, and so many struggling just to survive.
When a business needs to survive it not only cuts costs, but also sometimes raises prices. It doesn't give away the store. Just seems like common sense to me.
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