The dollar has buying power because the government says it has buying power. There is not enough gold on this planet to back every figure of money on this planet. The values of money is directly based on the trading power of the country issuing the money. Since the US is a global trade leader yes the dollar has a lot of spending power
While the value of a dollar has dramatically decreased over the past decade or so the fact is that it is still alive and kicking. It's common knowledge that the economy isn't the greatest, but as Americans we have proven that if we have it we will spend it. In this market, the only way to increase the power of a dollar is to spend it and spend it wisely. Hopefully one day it will once again be the strong worldwide standard for trade and business, but until that point it's holding on white knuckled.
The dollar is the foundation in which we base prices world wide in whatever currency we like. Without the foundation of the single dollar and its importance we would be sent back to the trading era. One dollar may seem like not much but there is a brotherhood out there that join this single dollar and make it a powerful currency. Many stores have items that sell for a dollar in which they satisfy our basic needs. As they accumulate we see more and more what a dollar can do and in this day and age with the economy the way it is a dollar does have buying power.
A dollar still has buying power, especially at the supermarket, where you can purchase carrots, rice, bananas, beans, pasta, and canned goods for under a dollar. It is important to not think of the dollar bill as the penny. People throw away pennies but it is not time yet to consider throwing away dollar bills.
Yes, a dollar still has buying power. undoubtedly it does not have the same buying power it had years ago or even last year! The economy is struggling all over the world but it is just part of the cycle that will correct itself eventually, with a little help however.
You have the POWER to BUY stuff with it, hence the United States dollar or any dollar for that matter has BUYING POWER.
The same cannot be said for some countries's currencies *cough* *cough* zimbabwe *cough* *cough*.
Of course, there is some level of inflation in the US which is only natural for any economy. However, its not hyperinflation.
A dollar is one hundred pennies. A dollar can buy things. It still has buying power. Also I love all of the arguments on this one lol. They're pretty darn funny. Why is this even a question. I would think the logic in this would be obvious. So yeah lol.