What can the average consumer do to improve the value of the US dollar?

SGT Private RallyPoint Member — Tue, 15 Aug 2017 23:10:15 -0400

Response by Sgt Private RallyPoint Member made Aug 16 at 2017 12:18 AM

Sgt Private RallyPoint Member — Wed, 16 Aug 2017 00:18:12 -0400

SGT Private RallyPoint Member Good question. There are many ways. Stop spending money on items that you do not absolutely need, and save/invest the money instead. Be a smart consumer. Go out to eat no more than once a week at lunch when it is cheaper. Do not buy desert or an appetizer unless you have a coupon. Use coupons to stretch your dollar. Keep track of where every dollar goes and what you bought and compare it to the money coming in each month. Prepare a budget and stick to it. Do something long enough and it becomes a habit. Being a frugal saver and investor are not dirt words. Do research on your investments to make sure that they are right for you. Planning and research will take you a long ways.

Response by CPT Tom Monahan made Aug 16 at 2017 5:35 AM

CPT Tom Monahan — Wed, 16 Aug 2017 05:35:55 -0400

If it's for the individual look for ways to add to the spent dollars value. Use coupons, discount programs, reward programs, and other deals. Also, buy generic and store brands so you can "stretch" your dollars. If this is a macro question involving currency, invest wisely and make your money work for you. Ben Franklin once said the best invention was compounded interest. Last, it's hard if not impossible to time any market. The international currency market is fickle and react to a bunch of unrelated variable.

Response by CPT Private RallyPoint Member made Aug 16 at 2017 7:24 AM

CPT Private RallyPoint Member — Wed, 16 Aug 2017 07:24:17 -0400

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Response by MAJ Private RallyPoint Member made Aug 16 at 2017 9:48 AM

MAJ Private RallyPoint Member — Wed, 16 Aug 2017 09:48:09 -0400

Simply put, not very much. The value of the dollar has more to do with our economy as a whole rather than what you or I do on a daily basis. Exporting more goods and services than we import helps strengthen the dollar. When the economy grows and unemployment falls the dollar strengthens. Inflation plays a part. Oil prices play a part. Etc. Etc. The dollar rises and falls based on a lot of factors that are pretty much outside of our control. I guess one could argue that if we all bought American it would help our GDP and thus strengthen our dollar but will most consumers spend more on products made in the USA to help strengthen the dollar? Probably not.

The economy is a complex thing and can be impacted by wars, hurricanes, who get's elected president (not only by what they do in office but just the fact that this guy beat that guy), and even rumors. You and I doing something means little. All of us together doing something could make a difference but we'd have to all have the same goal and the same determination to reach it. We could buy only American cars, use less oil, spend less, etc. We'll all have to pick one or two and stick with it for a while in order to see change.

Response by SGT Tony Clifford made Aug 16 at 2017 11:38 AM

SGT Tony Clifford — Wed, 16 Aug 2017 11:38:45 -0400

I'm not sure what you mean. Do you mean to make your money go further?

Response by AN Christopher Crayne made Aug 16 at 2017 12:00 PM

AN Christopher Crayne — Wed, 16 Aug 2017 12:00:34 -0400

If this is what you have in mind with your question, I hope it was informative.

If your summer vacation plans include travel abroad, you’ll enjoy increased spending power due to the U.S. dollar’s inflated value. The dollar’s value has been on the rise for the past year, and is currently 10 percent higher than it was at the beginning of 2014.

Just how does this impact the retail industry? Here are a few ways this growth will impact shoppers, businesses and policymakers:

Buying power — The stronger U.S. dollar compared to other country’s currencies right now makes imports less expensive, and U.S. companies and consumers benefit from lower priced imports. This gives an added boost to household buying power, which is also benefiting from the lowest gasoline prices in six years and larger job gains.
Interest rates — Lower prices put downward pressure on inflation, which should keep interest rates from rising. The Fed is anxious to get interest rates back to normal, but the lack of inflation may forestall action by the central bank to raise its rates. Moreover, the expectation that the Fed will raise interest rates later this year also helps push the value of the dollar up.
Export challenges — On the flip side, the strong dollar does create some significant challenges for U.S. businesses. U.S. exporters will find their goods are now higher in price than those overseas. This could result in reduced demand and cutbacks in domestic employment and spending. Again, this could be offset by the benefits of cheaper intermediate goods and inputs, lifting pricing pressure and essentially giving some consumers more money to spend on retail goods.
Foreign shoppers — International travelers who often shop in large U.S. cities like Miami, San Francisco and New York may not spend like they did when the U.S. dollar was weaker and they got more bang for their buck.
Corporate earnings — The stronger dollar will disappoint corporate earnings at many large U.S. corporations that generate an average 40 percent of profits from abroad — revenues that are tracked in foreign currencies. If foreign currencies decline in value, these companies report lower earnings as the foreign currencies are exchanged for dollars, perhaps making their stock prices less attractive.
"The dollar’s strength [shows] that we are moving in the right direction, toward a stronger, growing economy."
Jack Kleinhenz
NRF Chief Economist
Economically speaking, the reasons behind the growth in value for the U.S. dollar are many. Simply put, the stronger dollar is a direct result of a strong American economy — creating a stronger retail environment — even as global economies continue to struggle. Other important reasons for the historic growth include:

The growth in U.S. economic activity has outpaced other international economies and makes the United States an attractive place for foreign investors.
The United States responded to the financial crisis with a transformative and unprecedented monetary policy and reducing its budget deficit by cutting federal spending. These aggressive policies put the U.S. economy on track by stimulating growth and cutting the deficit, contributing to the new strength in the dollar.
U.S. interest rates are higher than other major countries, and it appears our interest rates will remain higher as central banks in other countries lower interest rates in an effort to stimulate economic growth.
The value of the U.S. dollar and its effect on the U.S. and global economies is complicated. Nevertheless, the dollar’s strength does show that we are moving in the right direction, toward a stronger, growing economy.

Imports Exports Global Trade

Response by 1SG Private RallyPoint Member made Aug 16 at 2017 12:03 PM

1SG Private RallyPoint Member — Wed, 16 Aug 2017 12:03:35 -0400

Wait six months to buy the things you want vs what you need.
The shiny new cell phone? Give it 6 months and see what it costs.
A brand new car? Buy one coming off a one year lease.
They will work just as well 6 months later.
"Everything is worth what the purchaser will pay for it" - Publius Syrius (One of my favorite philosophers)
Once you subscribe to the notion that inflated prices are OK to pay, you become part of the problem and prop up the inflated prices.
See also "debt is the slavery of the free".

https://en.wikiquote.org/wiki/Publilius_Syrus

Publilius Syrus - Wikiquote

Publilius Syrus, (fl. 85–43 BC), was a Latin writer, best known for his sententiae. He was a Syrian who was brought as a slave to Italy, but by his wit and talent he won the favour of his master, who freed and educated him.