Do Americans really care, or even think, about the falling dollar?
During my daily shopping chores I’ve heard people complain about gas prices… and taxes. However, I’ve never heard anyone (in person, on the street) complain about a falling dollar.
Amongst financial intelligentsia – yes, the dollar comes up in conversations. There, and of course on the internet.
My suspicion is that most Americans will react negatively when hearing about a “weakening dollar” not so much out of economic theory, but rather as a reflex; in a sense it sounds to the ear as if America is losing face (if I may use an Eastern concept.)
The weak dollar has helped the balance of trade problem, and were it not for oil we would have made serious progress by now in balancing our payments.
Inflation itself (and not a falling or rising dollar) when manifesting strongly does, I agree, tend to ruffle the feathers of the electorate. However, Obama’s popularity does not seem to me to be based on any fear of inflation or sense of loss in value of one’s savings.
