Why is it that our dollar has lost so much value?

Question

Why is it that our dollar has lost so much value?

Answer 1

A country's currency is tied to its productive capacity. If it produces $1,000,000 per year in products and services, it should have $1,000.000 in currency to handle the transactions. The US government prints the dollars that relate to these transactions. When the government prints more money than is necessary to support non-economic transactions, for whatever purpose the value of the currency decreases. A product is worth $5.00 but the dollars are only worth $4.00 in buying power because there are too many $ in the economy. The more extra-money that is printed by the government the greater the decrease in value. The government is currently printing extra money to cover the war, the credit crises, etc.

Answer 2

Our economy is going to SH*T!!