How far will your dollar go?

The strength of the dollar against other major currencies determines how much you can buy. If the US dollar is stronger, then something you buy from another country gets cheaper.

If the US dollar is weaker, then another country, with a strong currency, gets a cheaper deal when buying anything made in America.

What is the chart telling us?

• Late 1970’s the dollar value spikes.
• Mid 80’s the dollar drops in value.
• American purchasing power grows all the way through the 90’s.
• Drops like a rock in the 2000’s.
• Then just after 2010 American purchasing power climbs again.

Why is the dollar going on this ride?

There could be any reason. What do you think?

-Ben King