Americas Descent into poverty

The United States destroyed economically, socially, politically, legally, constitutionally and environmentally. A country that exists today — now not even the shell to that in which I was born. In this article I will talk about the economic collapse of America. In the following I want to consider other aspects of American collapse.

In economic terms, America is sinking into poverty. As said Peter Edelman, "low-paid jobs become a pandemic." Today, the "free and democratic" America, "the world's sole superpower," a quarter of the workforce is employed in jobs with pay less than 22,000 dollars, and it's — the poverty line for a family of four. Some of these low-paid — young college graduates, burdened with student loans who share housing with three or four like-that are in the same desperate situation. Others — single parents with medical problems, or have lost their jobs because of homelessness.

Others may be holders of a doctoral degree and teach at the university as an adjunct professor for 10 000 dollars a year or less. Education is still touted as the way out of poverty, but more often it is let into poverty and listings for enlistment.

Edelman, who studies these issues, according to the report that 20.5 million Americans have an income of less than 9,500 dollars a year, which is half of what is defined as the poverty level for a family of three.

At 6 million Americans are the only source of income — it's food stamps. This means that 6 million Americans are living on the streets, under bridges, or with relatives or friends. Heartless Republicans continue to advance the well-being, but, says Edelman, "mostly well-being disappeared."

As an economist I believe that the official poverty line is obsolete. The assumption that three people can live on 19,000 dollars a year, far-fetched. Given the price of rent, electricity, water, bread and fast food, one person can not live in the U.S. for 6333 dollars 33 cents a year. In Thailand, probably, as long as the dollar did not collapse, it is possible, but not in the United States.

As shown by Dan Ariely (Duke University) and Mike Norton (Harvard University) on the basis of empirical data, 40% of the U.S. population — and 40% of the poorest — are owned by 0.3%, a point three percent of personal wealth in America. Who owns the remaining 99.7%? The top layer of the population is 20%, owns 84% of the wealth of the country. And those who make up three-or four-fifths — mostly American middle class — have only 15.7% of the national wealth. This unequal distribution of income unprecedented in the economically developed countries of the world.

At one time, faced with the unequal distribution of income and wealth inequality, which, obviously, is a major challenge for economic policy and political stability, as well as macro-economy, the Democrats demanded redress, and the Republicans have been forced — albeit reluctantly — to agree.

But not today. Both political parties are selling themselves for money.

Republicans believe that Americans are suffering from poverty is not enough to help the rich. Paul Ryan and Mitt Romney intends to cancel all programs designed for those who are Republicans deride as "freeloaders." "Freeloaders" — is the working poor and the former middle class, whose jobs were put into offshore in order to guide companies could receive multi-million dollar compensation for the cost of wages, and their shareholders could make millions of dollars on capital gains. While a handful of directors enjoys yachts and girls from the "Playboy" tens of millions of Americans can barely make ends meet.

In the political propaganda of "freeloaders" — not just a burden on society and the wealthy. They are leeches who force honest taxpayers to pay for their many hours of comfortable doing nothing when they are enjoying life, watching sports on TV and catch trout in the rivers, while they drag their belongings in baskets from the supermarket and sell their bodies for another burger.

The concentration of wealth and power in the U.S. today has gone far beyond what are my professor and teacher of the economy could have imagined in the 1960s. In the top four universities in the world, which I visited, the opinion prevailed that competition in a free market would prevent the large inequality in the distribution of income and wealth. As I understand it, this belief was based on ideology, not on reality.

Congress, acting on the basis of this false "faith in the perfection of the free market," deregulated the U.S. economy in order to create a free market. The immediate effect was the practice of resorting to any illegal action earlier to monopolize, to commit financial and other fraud, in order to destroy the industrial base revenues of U.S. consumers, as well as redirect the income and wealth in the hands of the "one percent."

The "democratic" Clinton administration, as well as the Bush and Obama won over by the ideology of the free market. Clinton's transition towards the "Big Money" essentially stopped the program of aid to families with dependent children. But this betrayal of distressed Americans were not enough to satisfy the appetite of the Republicans. Mitt Romney and Paul Ryan want to cut back or eliminate all programs that are a means of saving the distressed Americans from hunger and homelessness.

Republicans argue that the only reason that Americans need is what the government spends taxpayers' money to subsidize Americans who do not want to work. According to the ideas of Republicans, while we work hard, and sacrifice their leisure time that can be devoted to the family, the "rabble sitting on benefits," enjoying idleness provided by our tax dollars.

This is a ridiculous belief — widespread among corporate executives that maximize their profits at the expense of transfer to offshore jobs of millions of Americans out of the middle class — has left Americans in poverty, cities, counties, states and the federal government has no tax base, leading to failures in the state and municipal levels, as well as to the colossal fiscal deficit at the federal level that jeopardizes the purchasing power of the dollar and its role as a reserve currency.

The economic destruction of America has enriched the mega-rich at many billions of dollars, allowing them to enjoy life and expensive applications to it, wherever they wished.

Meanwhile, away from the French Riviera, the Ministry of National Security is stored enough ammunition to hold disadvantaged Americans under control.

Paul Craig Roberts served as assistant Treasury secretary for economic policy and a member of the editorial board of the Wall Street Journal, was a columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has held positions at a number of universities.

warandpeace.ru

See also United States — the plague of the modern world

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