New York Wine Shop Accepts Euros

The euro is the official currency of numerous European countries, and it is widely accepted outside the euro-zone. Recently, that has come to include East Village Wines located at 138 First Avenue in Manhattan. The reason is simple; so many tourist show up in New York with strong euros in their pockets that it makes sense to accept the notes.

In the last year, the euro has gained about 12% against the US dollar, and it is around 20% higher than two years ago. The result has been a boom in European tourists coming to the US. Plain and simple, it’s cheaper to fly to the US than to some destination in Europe, and much cheaper to shop, stay in hotels, and eat out. New York is closer than most other American cities to Europe, and rumor has it there are a couple of places worth visiting there.

The store’s manager, Imran Ahmed, told New York’s Daily News reporter Elizabeth Lazarowitz that when they started accepting euros, his store saw not just an increase in tourist sales but also sales to locals who have a few euro left over from their trips. If nothing else, there is a novelty factor, “Tourists bump into us and get a kick out of it,” said Mr. Ahmed.

Behind this, though, is a sorry tale of fiscal mismanagement over the last several years. Because the US government doesn’t pay all its bills with tax revenues (that is, Americans consume more government than they pay for), it must borrow. With a soaring deficit and ballooning debt, the value of the dollar has dropped. While this is helpful to tourists from Europe and American companies that provide goods and services outside the US, it is very hard on those who have to buy things like imported oil (just about every American).

Worst of all, it didn’t have to be this way. Tax cuts need to have corresponding spending reductions over the course of the business cycle. Mr. Bush blundered badly in cutting taxes and increasing spending. Tax-and-spend Democrats can wreck this generation of tax-payers; borrow-and-spend Republicans like Mr. Bush will wreck their children and grandchildren. It’s enough to make one ask Mr. Ahmed if there’s anything particularly strong on sale.

© Copyright 2008 by The Kensington Review, Jeff Myhre, PhD, Editor. No part of this publication may be reproduced without written consent. Produced using Fedora Linux.

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