3rd World Status; Is That Where America is Headed?
Good Morning Middle America, welcome to your King of Simple News Network, where the news that concerns Middle America is reported daily while we still have a Middle America to report to.
The following is an article that I wrote in November of 2007. Isn’t it amazing how things don’t change?
This is one of those mornings that I wish I were blissfully ignorant. I find myself understanding far too much about America’s precarious condition.
Abu Dhabi Investment Authority, an Arab investment group, bought a stake in Citibank yesterday. The Chinese, Arabs, East Indians, Japanese et al, loan us approximately $3 Billion per day in an attempt to keep us treading water. More than 3 Million jobs have been lost in industry and farming continues its slide to corporate ownership.
There are between 12 and 15 million known illegals in the Untied States. Medicare is slated to fail within 10 years. Personal savings remain negative for the third consecutive year (never before seen in our history). The first of 78,000,000 baby boomers become eligible for social security in about a month.
The national debt has increased by 1000% in the last 25 years to $9 Trillion (today $13 TRILLION) and we have become the largest debtor nation on earth. Middle America is being selectively wiped out by our own countries trade policies. What have we done?
Many, many years ago a good friend who is very bright and very realistic, explained to me that the U.S. could become a third world economy in the blink of an eye. I wanted to believe that he was crazy; but I knew better.
He explained that once a person loses his or her job, it’s a short trip to 3rd world status. That being said, employment then, is all that separates us from that unfortunate state. That, and the social safety net that currently exists to supposedly create a floor for the level that one could sink.
But wait…who supports that safety net? The remaining job holders; so with no jobs is there a safety net? The short answer is no. (Consider that unemployment insurance has now been bankrupt and the federal government is supporting that program with borrowed money. States are cutting back on nearly all social programs as they slip further into the red).
I want you to do something for me. Come on, pacify me for just a moment. I want you to pretend that you are unemployed. Not only unemployed, but unemployable, as in there are no jobs available. How long would it be before you reached third world status?
Don’t just dismiss this as, “It won’t happen to me.” That is what the 25,000 people being furloughed (as we speak) from Chrysler thought. Or the 30,000 from GM. I could go on, but it’s plain that industry is leaving the U.S. daily. See the first paragraph of this post.
What would you do? Where would you go? I can tell you; in a short time you would go broke and reach third world status. Scary huh? But you say you’re in management and life is good. Here’s a prediction and I hope I’m wrong. I believe the next huge round of layoffs in the U.S. will be in upper middle management. Companies in trouble (like say banks) that will jettison their heaviest baggage first.
Please remember that the #1 job in the U.S. is that of a sales clerk. Number two? A cashier. The base employment model in the U.S. is not creating wealth, it is creating debt!
Think about all that I’ve just said. These may be dark thoughts, but unfortunately, all too true. Third world status is just a pink slip away. And what are your main stream politicians doing for you? They’re helping you pack for the trip!
We need a radical leadership change. Consider Congressman Ron Paul, or another candidate that expresses some hope for Middle America. [End 2007 article].
While I often retro back to articles that I have written in the past, I don’t intend to depress you, but only to demonstrate that this train wreck has been occurring for some time and will continue to do so. So how did I know in 2006 what we were in for? I had a darned good 8th grade math teacher and a pretty fair science instructor.
“If you find you’re on the wrong train, get off at the next stop; it’s a much shorter trip back home.” Live simple, live well.
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I would like to disagree with your pessimistic take on things; however, I’m afraid you’re right.
If the States and Federal Government quit spending, our economy would crash overnight. Hopefully they are smart enough not to pull the plug too fast. Those who advocate balancing the budget right now had better be careful about what they wish for. Better to slow the descent, even if it is ultimately futile, than to hit a brick wall at high speed. The former might be survivable, the latter most certainly not.
This is not unlike a high-speed car crash. The longer the distance you have to dissipate the force of the crash, the more likely you are to survive. So keep that money coming Uncle Sam.
If we keep the economy running at low speed, we might be able to jump out and survive (transition.) However, if we come to a screeching halt without having made any preparations, we have a broken economy that no longer runs, and are essentially stranded without the means to survive.
I don’t really see any choice here, we need to buy time and make a quick transition.
There is a city in Los Angeles County, CA that just laid-off 100% of its workforce. Police, Fire, Road Crews, Parks and Recreation, etc…. How’s that for cuts?
http://latimesblogs.latimes.com/lanow/2010/06/sheriffs-dept-to-patrol-maywood-while-city-employees-now-face-lay-offs.html
When will the next domino fall in Los Angeles County? There’s another 100+ people unemployed and most likely unemployable in LA.
Yeah, they’re going to privatize everything. Big companies will turn this country into a huge ghetto, police state and profit center. It’s all well underway. Every politician and mainstream pundit is preaching austerity. We’ll end up eating soyulent green.
It’s a shame that we have arrived at this juncture, as we had 40 years to prepare and the Great Depression as a sterling example of what not to do.
As private business and government continue to cut costs and employees, the spiral to the bottom intensifies.
As Greg stated, be careful what you wish for.
Government and economists term this falling economy as a down business cycle. What it really is of course is a positive feedback loop in counter rotation.
The sad part is that if we miraculously pulled out of this death spiral, we would immediately lay the ground work to repeat the performance. We practice unbridled debt capitalism and the results are always the same once zenith for that system is reached, which occurred in 1970.
Until such time as we have leadership that stands up in front of this nation and says, “The Biggest Lie Ever Believed is that infinite growth is possible in finite world.”
Until that speech is made there is zero chance of correcting our ills.