The Weak Dollar

I'm a car guy. In reading BBC Channel 4 an interview with GM Executive Bob Lutz I overturned this important economic tidbit:

Lutz explains that GM and other US giants have managed to hold their own against the Europeans and immensely strong Asians in recent times, largely thanks to the weakness of the American currency.

The falling dollar has been badmouthed quite a bit and for some good reason. After all a weaker dollar means imports into the US cost more and that isn't a good thing for maintaining our material quality of life.

But there is definitely a good side to the falling dollar, it makes American products more attractive on the international market. I don't think America's prolonged drop in industrial capacity is a good thing. Having an industrial base in heavy industry and consumer products is good and a falling dollar helps us with that.

I don't know that the weak dollar is a good thing, but I do think it is a cloud with a definite silver lining.

UPDATE: Ok I'm sort of a car guy. Not enought to, say, debate the finer qualities of various all-wheel drive schemes. But enough to know that engine output must be judged by more than horsepower alone.