How does the dropping dollar affect us? Is it good or bad?

The dollar has fallen extremely low compared to other currencies. It has fallen so low that the Canadian dollar is even higher than the USD. The fallen dollars has some advantages and disadvantages. People who like foreign goods will now have to pay more money. But for businesses, their products will be demanded more. Prices have risen up such as a barrel of oil used to cost $22 now it costs $80 a barrel. Imports are now more expensive, the fallen dollar adds to the inflation rate. The low cost of the dollar has caused people to spend more money on foreign goods than they used to spend. Many people start to hold back their money because they don't want to spend a lot and for safe keeping.

The government is currently working on making the dollar even lower, yet the U.S. Treasury Secretary Henry Paulson Jr. said “a strong dollar is in our nation's best interest." The fallen dollar has caused the interest rates to go higher. But the low dollar would make U.S. exports more competitive and imports would lower due to the rising prices. As foreigners come to the U.S. they would be able to buy more because their currency is higher than our currency. The lower dollar is disadvantageous and advantageous.

Source:
http://findarticles.com/p/articles/mi_qn4180/is_20071107/ai_n21102014
http://www.csmonitor.com/2007/0924/p01s05-usec.html?page=1