The Sinking Value of the American Dollar: My Perspective

America's dollar, the currency in which all Americans are paid and use to pay their bills and buy things to enjoy their lives, is sinking in value. One hundred dollars now will only buy less than half of what it would buy a few years ago. How will this affect the world as a whole? How will this affect our nation? How will this affect us as individuals?

The affects of a falling dollar are sharp; it will make America once a leading nation in terms of economics into a third world country. This statement seems brash but it is true; a falling dollar will make America a third world economy because we have a huge deficit to other countries and we have no way of paying this debt when our currency is being made worthless. Furthermore, when a currrency falls it means that manufacturing in America in theory will increase because it will be cheaper to sell our products abroad to other countries. In theory a drop in currency value is believed to work but it will never work because the corporate world in America will never keep jobs in America as long as they can find a cheaper places to build and produce and there are alot of nations in the world that can still causes job outsourcing here in America. It will also not work because we have shifted from beign a manufacturing society to being a service driven and information based society; in other words America no longer makes products as we did after World War II in the 1950's we now are service driven and information based which means we have no products to sell in large numbers to validate a drop in currency to this degree. Why will a person in Europe buy products from America when they can afford to pay for the product in Europe when the Euro is strong to sustain a good stantard of living; even if they want to be cheaper and buy a cheaper product they can buy a product from Africa; people in Asia are the same.

The prestige of America will drop; we with a weak dollar will have a weak economy and a weak say in international levels; will be begin to follow the way of the old Soviet Union; we will have a powerful military and a weak economy. If such an economic practice continues it will effect the military in a decades time.