How the Dollar Hurts the People but Benefits Banks and the Government

How the Dollar Hurts the People but Benefits Banks and the Government

The U.S. dollar is the backbone of the global economy, but the way it is controlled and manipulated often harms everyday people while benefiting banks and the government. From inflation to monetary policy, the financial system is designed to maintain power at the top while shifting the burden to the average citizen. Let’s explore how this dynamic plays out.

1. Inflation: The Hidden Tax on the People

Inflation is often framed as a natural part of economic growth, but in reality, it erodes the purchasing power of the average person. As the Federal Reserve prints more money or injects liquidity into the economy, the value of each dollar decreases.

• Who Suffers? Regular people see their savings lose value, their wages buy less, and the cost of living rise faster than their income.

• Who Benefits? The government benefits because it can pay off its massive debts with devalued dollars. Banks benefit because inflation encourages borrowing, allowing them to collect more interest on loans.

2. The Federal Reserve & Monetary Policy

The Federal Reserve controls interest rates and the money supply, primarily to serve economic stability—but often at the cost of ordinary citizens.

• Low interest rates encourage borrowing but discourage saving. While banks get access to near-zero interest money, consumers pay high rates for loans and credit cards.

• Quantitative easing (QE)—when the Fed injects money into the financial system—pumps up stock prices, benefiting Wall Street while making it harder for ordinary people to afford assets like homes.

3. Debt Dependency: Keeping People Trapped

The modern economy runs on debt, and banks profit from keeping people in a cycle of borrowing.

• Credit cards, student loans, and mortgages all carry interest payments that funnel money from individuals to banks.

• The government also benefits by using debt to fund its spending while expecting future taxpayers to foot the bill.

4. The Dollar’s Global Power and Its Consequences

The U.S. dollar is the world’s reserve currency, which gives the government immense control over global trade and finance. However, this power comes at a cost to the average person.

• When the dollar strengthens, U.S. exports become more expensive, leading to job losses in manufacturing.

• When the dollar weakens, imports become more expensive, increasing costs for consumers.

5. Bailouts & Corporate Welfare

During financial crises, banks and large corporations receive government bailouts, while regular people struggle with unemployment and foreclosures.

• 2008 Financial Crisis: Banks received trillions in bailouts while millions of Americans lost their homes.

• COVID-19 Response: Large companies benefited from massive stimulus programs, while small businesses and workers got short-term relief.

Conclusion: A Rigged System

The dollar, controlled by the government and banks, serves as a tool to extract wealth from the working class while preserving power at the top. Inflation, debt, and financial manipulation ensure that while banks and the government thrive, everyday people struggle to keep up. Understanding this system is the first step toward demanding a fairer economic future.

What do you think? Have you felt the impact of this system in your own life? Let’s discuss!