Standard of living, meet falling US dollar – how a falling US dollar benefits banks at the expense of working Americans.
There is certainly a cost to a falling US dollar. Many Americans are living the consequences of this multi-decade long trend. The Federal Reserve has only added fuel to this trend but many families are now realizing that there does come a cost to unrelenting debt based solutions to fiscal problems. Shopping at the local grocery store I’ve noticed that some items have doubled in the last few years. Fueling up is also more expensive. The issue with living on a low dollar policy is that eventually, you end up in a low wage capitalist system. The easy money slowly inflates away especially on global items. We are seeing this in the US in various arenas especially with higher education. The end result is that the standard of living for the vast majority of Americans has fallen dramatically in the last few decades.
US dollar trend
Think about what this has done in a more practical sense:
-Energy is more expensive because it is traded on a global market (you are trying to compete with others with a declining currency)
-Education. Massive debt has devalued the dollars even further. Very few families can actually afford to pay the sticker price of tuition and need to go into debt just to finance college. Most of the middle class jobs are now in fields that require degrees since the jobs are not growing in manufacturing (that is, making actual things):
-Food gets more expensive since you are also competing globally here. Take a look at your grocery bill and compare it to your bill from 10 years ago. This stands in stark contrast to household income that has been stagnant for over a decade.
We rarely hear about the massive decline in the US dollar in the mainstream press. This is not likely to come up in any of the campaigns because the Fed and government realize they need to inflate our debt away. Who in their right mind thinks we are ever going to pay off that growing $16 trillion debt? The middle class in the US is a shrinking group.
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