Eastphalia, US

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Home Vintage Political Cartoons The Value of a Dollar

The Value of a Dollar

 

 

In 1947, the post-war boom hadn't quite gotten its footing yet, the U.S. was just out of an expensive war, and the world economies were trying not to fall apart as some of the most powerful countries in the world tried to rebuild.    It was also only a few years after the loss of the gold standard, which allowed the value of the dollar to fluctuate in hopes of catching a depression before it gets too far along.   The comic above showed the duality of the U.S. dollar in people's minds: people in the United States are seeing their once powerful dollar shrunk to a fraction of its original value, but outside the U.S., the dollar wasn't looking to bad.

The outcome of this attitude helped feed the dollarization of international economies; in the end, they want to trade with the U.S., so why back your currency with archaic gold (supplies of which were beginning to dwindle compared to the size of the world economy) when you're dealing with the U.S., who'd much rather trade in dollars?   The Bretton Woods system put this system into practice, making the U.S. dollar the world's favorite monetary exchange rate.  The system fell apart when the gold standard was abolished entirely by Nixon in the 1970s, but that didn't stop foreign currencies from being pegged to the dollar for years, some until today. The U.S. dollar is still a strong currency for international trade, but the past ten years haven't been kind to the U.S. economy: the Euro is looking to have the trio of Economy, Foreign Diplomacy, and Foreign Politics bowing to its anthropomorphic moneybags.

 

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