US cannot get above water
The United States has rallied from tough times in the past. A Great Depression, many recessions, two World Wars, a Cold War, and many challenges in between. This crisis is more difficult. In each of those prior instances, the country had a strong manufacturing base, and a variety of industries which produced goods which the world wanted. Not only do we not have this today, but we even have to import our grapes from foreign countries.
A massive deficit can be overcome with a tax base. This current debt appears to be insurmountable, even by experts. “American deficits will not return to what are widely considered sustainable levels over the next 10 years. In fact, in 2019 and 2020 — years after Mr. Obama has left the political scene, even if he serves two terms — they start rising again sharply, to more than 5 percent of gross domestic product. His budget draws a picture of a nation that like many American homeowners simply cannot get above water.” “Unless miraculous growth, or miraculous political compromises, creates some unforeseen change over the next decade, there is virtually no room for new domestic initiatives for Mr. Obama or his successors. Beyond that lies the possibility that the United States could begin to suffer the same disease that has afflicted Japan over the past decade. As debt grew more rapidly than income, that country’s influence around the world eroded.”
We might already be seeing the effects, if we look closely enough. Last week, the Brookings Institute revealed that 30% of Americans are already living in poverty. Poverty grew at twice the rate of U.S. population growth from 2000 – 2008, and now encompasses 39.1 million Americans. “This research doesn’t include 2009 since full data hasn’t come out yet. When it does, expect a huge up-tick in poverty rates given since that’s when the real brunt of the recent crisis hit ‘Main St.’.”
Isn’t this an important piece of information? I didn’t see it on any of the news networks.
