Declining Dollar: The Impact of Inflation and the Search for Alternatives

Since 1970, the US dollar has witnessed a significant decline in purchasing power. This erosion is primarily driven by inflation – a gradual increase in prices that erodes wealth over time. With the U.S. no longer tied to the gold standard since 1971, the government enjoys more flexibility in controlling money supply, leading to increased inflation and a corresponding decrease in the dollar’s value. This trend impacts everyday expenses such as groceries, housing, and transportation, highlighting the need for alternative stores of value that can better protect wealth against this continuous decline.