Econ: United States Dollar and Dollar Essay

Submitted By pamolicious
Words: 443
Pages: 2

The American dollar is greatly strengthening in many ways. Oil was the main contributor of this strength increase. However, US inflation is going down because of this rise since European and Japanese are going down. This makes travel cheaper for Americans but more expensive for those abroad, luckily, 10% increase in the US dollar only really adds up 0.2% drop in abroad visitors. This article directly connects with Generally Accepted Economic Goals for a few reasons. Economic growth can prevalently be seen in the increase of the US dollar and with the decrease of foreign money. This coincides with Economic Efficiency partially because of the dollar increase and partially because of the decrease in the cost of oil. Both of these coinciding brings more money to the pockets of Americans therefore, giving them more money to spend, in which creates a far more efficient economy as a whole. This article also connects with the balance of trade. Foreign and domestic trade is effected by the dollar rising because our dollar is worth more in other countries and we have more to spend here at home. So, the products we buy we will start to buy more and more of them.

Unfortunately, I do not agree wholly with this article. Inflation doesn't take into account food and whether or not the economy is actually improving or whether Americans have just giving up reporting it is not discussed in this article. Food in America has increased on average 50 percent in our grocery stores. They don't report this in the article however, this makes me wonder why? Why hide true inflation? I believe the reasoning behind it is to give Americans a false sense of security. Rent