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The See Saw Dollar And The Average Family

Nov 27, 2007
A lot of changes are happening as the dollar declines in value and countries begin to unload. All of this economic impact means little to the average person if they don't see a change in their own pocket book. The question then arises what is going to happen to everyone who doesn't have millions of dollars in the bank.

As the dollar declines some changes occur that the average person may not immediately realize. Before the average person actually experiences any changes to their lifestyle a few things must happen first. The dollar must decline to the point that other countries will want to switch currencies to something like the Euro. As more American dollars are released into the system due to this switch the value of the American dollar will continue to decline.

When this decline starts you will find that the purchasing power of many Americans will decline with it. What a dollar could buy today will require more then a dollar tomorrow. That means that the average American who walks into a store will have to pay more for their clothing, televisions, and other "bread & butter" issues. As the purchasing power declines the lifestyle of the average family will decline.

When fewer imports are being purchased because of the high cost America loses its overall purchasing power. American businesses were able to keep products low and make advantageous deals because they could purchase and sell nearly all of the products the bought to the American public. When the dollar declines and the prices rise these deals are more difficult to make and in the end the prices rise higher. As prices rise higher the few products people purchase.

The average American worker may also find that his job is threatened as large department stores and businesses that can't sell their products start making layoffs. This reduces the amount of purchases society can make and even further starts the decline in society. Other Americans that see people losing their jobs begin to hold onto any money they have. As they tighten their spending the damage becomes even greater.

Americans will also find that foreign policy will become more difficult and nations will become more brazen against American interests overseas. They will demand change to the status quo, call for fiscal changes to steer them away from the American economic machine, and start focusing on different trade strategies. Where the money goes the mouth goes with it.

Despite this terrible news there is a silver lining in the cloud. As the American dollar declines the labor and the products of the U.S. become cheaper. Since the country maintains a semblance of its great manufacturing past it can come back with a vengeance. The high quality of American products will do well in a global economy that is addicted to cheap goods. So the cycle ends.

The American family may have to get along with a lot less but will maintain its resolve through a very trying era of American existence. It is not the first time the country has come through such problems and will likely continue to succeed in the future. The mountain to climb will not be easy as new economics threats from countries like China grow.
About the Author
Murad Ali is a three time published author, an HR professional, a business professor and helps businesses get visitors at http://www.article-agent.org . For more articles visit http://www.thenewbusinessworld.blogspot.com
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