All Countries Should Use the Same Currency

Thanks DoctorDeku. He mentioned that he will not be focusing on a specific currency. I’d just like to reiterate that my arguments are not bound to the Euro. It is just an example because it is the only modern example we have of a universal currency. I. A Universal Currency Would Be Convenient Eliminating exchange rates is not a good idea. They deprive countries of the ability to control their economic policy. If a country is experiencing a recession, it should depreciate its currency so as to make exports look more profitable to foreigners and to discourage imports, in order to create a trade surplus. However, eliminating exchange rates ends this. Countries can no longer set exchange rates to help in recessions. If exchange rates are too high forprofitable exports, then it’s too bad for that country. The problems with this can be seen in Spain.[1] I’ll concede that using a foreign currency at home may cause tension, but no system is perfect. However, having a universal currency would not affect tax revenues. For example, a 10% flat tax on income is 10% of all income, no matter the medium. II. A Universal Currency Would Solve Dishonest Trade Tactics First of all, as the article points out, China is not suppressing its currency: “But there is little evidence the central bank is intervening on a large scale to suppress the value of the renminbi… The renminbi has been under downward pressure because Chinese businesses and households have been moving more money out of the country to diversify their investments and hedge against the possibility of a political change at home.”[2] In fact, “When a boom goes bust, devaluing currency is the least bad way for governments to rein in wages and prices that are suddenly too high. But if you use the same currency as another country that isn’t in dire straits, good luck convincing them to accept devaluation on your nation’s behalf.”[3] There’s nothing really wrong with devaluing a currency to get out of an economic recession. Finally, I see no correlation in dishonest stockmarket tactics and many currencies after reading his two articles (well reading the abstract of the first one). I ask my opponent give more information on this supposed correlation. III. A Universal Currency Would Encourage Cultural Diffusion I admit, it is a hassle to go to another country and have to use a different currency. However, it’s not the end of the world. It’s easy to get Sweden’s currency made into Norway’s (as long as you are in either country). These days, currency “vending machines” are everywhere. It is easier than ever to change your dollars into, say, Euros. Next, it is also not that big of a hassle to use money in other countries. Every time I have traveled, I have had such an easy time getting currency that I wouldn’t even consider it a hassle. It’s a price we have to pay for having the right to dictate our own economy in the ever-globalizing world. And with that globalization, it has become easier than ever to get the currency you need at the proper exchange rate. A universal currency would not encourage cultural diffusion any more than we already have it. IV. A Universal Currency Would Encourage Equality I don’t understand why my opponent thinks that we cannot clearly see another countries’ standard of living and classify people on a global scale because of separate currencies. All you have to do is divide a countries’ GDP by its population and translate that value into the currency you want through exchange rates. We do it for all countries. And again, I don’t understand why my opponent thinks that we cannot see that the US is better off overall than many countries. We don’t need a global currency to see that. That’s what GDP percapita statistics are for. In fact, by putting the world under a universal currency, it will harm smaller economies that have not taken off yet by disallowing them from devaluating their currency to expand their economy, thus making the gap bigger. Conclusion While presenting a solid case, my opponent has several fallacies in his case. For example, many of his sources only back up half or less of his argument. For example, his sources 4 and 5 mention various forms of dishonest stock market tactics, but do not attribute it to separate currencies. My opponent has never proven that point, and several other points in that fashion. He also contains a few fallacies where he thinks a universal currency will help promote equality. One, he hasn’t proven that a universal currency will help us see our position in the world better, and he hasn’t proven why a universal currency would promote equality in the first place. I even showed how a universal currency harms equality. Not one of his arguments that even make sense hold a candle in comparison to countries being able to dictate their own economic-policies; not a one-size-fits-all policy that will screw up most countries under it. That is vitally important to a countries’ well-being and eventual prosperity, no matter the size or condition.Sources [1]: http://www.nytimes.com...[2]: http://www.nytimes.com...[3]: http://www.wired.com...