The decline of the US dollar and the rise of BRICS nations’ currencies is a result of internal forces that have weakened the dollar’s standing on the global stage. Here’s how it plays out:
The elite in America, for years, benefited from a system where the dollar reigned supreme, allowing them to extract wealth from other nations while maintaining control at home. But now, those powers—whether through reckless spending, debt accumulation, or political mismanagement—have caused the dollar to lose its value and global influence. This has opened the door for nations like Brazil, Russia, India, China, and South Africa (BRICS) to create their own financial system, a new currency that challenges the dollar’s dominance.
Why don’t the American elites replace this collapsing system with something better? Simple. They still benefit from it. Even as the dollar weakens, they maintain their wealth and power within the existing structures. The masses, the working-class people, suffer from inflation and economic instability, but the elites cling to their privileges.
The situation fits the framework that political scientists have used to explain institutional change. First, there’s a battle over resources and decision-making. The elites control most of it, and the rest—ordinary people—have little say. Second, the masses only gain some leverage when they can mobilize and demand change, like we’re seeing with dissatisfaction over inflation and economic policies. But third, and most importantly, there’s a commitment problem: even if the elites see the damage being done to the system, they are unwilling to hand over decision-making power. Instead of transitioning to something more sustainable, like a balanced economy or a new global system that benefits all, they hold on until the situation becomes unsustainable.
Meanwhile, the BRICS nations are taking advantage of this weakness. By creating alternatives to the dollar, they’re building their own economic powerhouses. While the US dollar was once unchallenged, its destruction from within has given rise to a new order—one that the elites in America may not be able to stop, even if they wanted to.
