Dollar Decline Essay Example | Topics and Well Written Essays - 1250 words

Dollar Decline - Essay Example THESIS STATEMENT The essay intends to describe the impact, which is imposed by decline in the purchasing power of a dollar over the individuals and their respective families. Additionally, it provides the measures that can be adopted in order to combat the declining purchasing power. Moreover, the essay would also reveal the steps that are adopted by the national leaders such as the politicians to mitigate the problem of declined purchasing power of a dollar. HOW IS THIS DECLINE IN THE PURCHASING POWER OF A DOLLAR IMPACT YOU AND OR YOUR FAMILY? With respect to the decline in the value of dollar, the citizens of the US will be facing adequate challenges in relation to their purchasing power as the prices of commodities will increase due to rise in the rate of imported commodities. Specially mentioning, the unemployment rate will also augment due to increased rate of import price for industrial sector, which will unfavorably affect the life of people by a certain degree. It may further lead to scarcity in food products. In this regard, it can be comprehended that a decline in the value of dollar will lead to price inflation and the purchasing power of the people will decrease. ... Thus, decline in the value of dollar will imbalance the economy in relation to trading activities and investments among others. In this regard, a decline in the value of dollar will adversely affect people and their family with increased commodity price and deprived living standards (Feldstien,† The Declining Dollar†; Hammer, â€Å"7 Economic Consequences of a Dollar Collapse†). WHAT CAN YOU DO, FROM A PRACTICAL DAY TO DAY STANDPOINT, TO COMBAT THIS DECLINE IN PURCHASING POWER? The decline in the value of dollar will led to inflation and eventually would decrease the purchasing power of the people. In this regard, the people in order to address or to combat such declining purchasing power are required to devise certain appropriate strategies along with plans. In this situation, people having investments in the stock markets should reinvest and convert those in valuable assets that include gold and silver among others in order to preserve their wealth. Additionally, the people can also seek towards converting dollar in certain other currency. In this regard, people are required to plan their income in accordance with their respective budgets in order to maintain a minimum living standard under such inflationary conditions. Moreover, monetary credit operations ought to be minimized in order to maintain financial stability. Respectively, people with adequate savings and stabilized financial conditions will be facilitated with the opportunity of maintaining their living standards and most vitally combating decline in purchasing power (Mehalko, â€Å"Protecting Purchasing Power in Inflationary and Deflationary Environments†). In order to combat against the decline in purchasing power, people can invest more in real along with