In the world of floating exchange rates, myriad factors influence currency movements each day, and there is no economic or political consensus on how to value currencies. Investors tend to rush into the dollar when global uncertainty spikes. Heavy selling of a currency is often provoked by political instability or fiscal imbalances and ballooning debt. The strong U.S. dollar today is partly a result of capital inflows in the wake of tax reform. That’s a sign of economic strength.
Democrats do not in general advocate cuts to entitlements for affluent people, either. And, in fact, some of the most popular items on the current Democratic agenda are wealth transfers to people who are relatively well-off and in some cases very well-off. The most prominent example of that is the proposal to pay off Americans’ college loans for them. The wage premium for college graduates has fluctuated a bit over the years, but college graduates on average still earn much more than non-graduates, and they end up about twice as wealthy. Most of the borrowers with college loans are able to repay them out of a relatively small portion of their incomes, and the people who are the most burdened by their student loans are, counterintuitively, those with the least debt: We see those shocking stories about recent graduates with six-figure debt burdens, but borrowers with $5,000 or less in student debt are almost twice as likely to be in default as those with $100,000 or more.