Is America becoming a third world country?
Posted on Sunday, August 22, 2010 at 11:37 AM
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The main characteristics common to Third World countries are a high level of debt, an income distribution concentrated to the top 1% of the population, and an economy based on export of raw materials and import of manufactured products. (Source: Swans Commentary).By those yardsticks the United States is slowly slouching toward Third World status.
46 of 50 states are on the verge of bankruptcy, our cities are going dark at night, our asphalt roads are being returned to nature and sharp budget cuts are leaving our students without teachers and supplies, or even a full-time education.
Just this month, in shocking scenes of mass desperation, 30,000 people showed up to apply for public housing in East Point, Georgia for 455 available vouchers. The despair and chaos suggested a Third World nation, not the United States - but it was the United States.
Perhaps we shouldn't be so surprised. After all one out of every eight American adults and one out of four children now survive on government food stamps. And according to the US Department of Agriculture, 50 million Americans were unable to buy enough food to remain healthy at some point last year.
These are shameful numbers for the world's richest nation.
But none of this should be a mystery. Since 1975, practically all the gains in household income have gone to the top 20% of households.
Whilst the conservative right keeps its voters hypnotized with the latest shell game involving God, Guns and Gays, the ordinary citizen has had his wallet pilfered or her purse snatched, over and over.
Of the $1.7 trillion in tax cuts taxpayers received through 2008, high-income households received by far the largest - not only in amount but also as a percentage of income - which dramatically shifted the concentration of after-tax income toward the top.
The income gap is expanding now not because the middle class is losing income, but because the incomes of the wealthiest are skyrocketing.
'If income growth had been shared equally among all income groups, the families at the bottom would have $6,000 per year more than they do now, and the middle would have $13,000 more,' says the Center on Budget and Policy Priorities this month.
It's a fact universally acknowledged that the most dramatic wealth gap in American history literally exploded during the eight years of the George W Bush administration. Now the top 1% owns a third of Americas wealth and 50% of its bonds. In fact, the gap between the top 1% and everyone else hasn't been this bad since the Roaring Twenties.
Meanwhile the real average earnings for middle class Americans have not increased in 50 years.
That's half a century.
Republican tax cuts have significantly increased the wealth gap, of course. Income tax just keeps getting lower and lower for the rich. It's a champagne and caviar party that never ends, if you're one of the elite few with a golden ticket, that is.
If you aren't in the top 1% of America's earners, you're pretty much screwed.
If the 80% of American households are unable to take back the power that they have gradually conceded, then it will continue like this for the vast majority, who have become the financial minority.
Republican tax cuts have significantly increased the wealth gap, of course. Income tax just keeps getting lower and lower for the rich. It's a champagne and caviar party that never ends, if you're one of the elite few with a golden ticket, that is.
If you aren't in the top 1% of America's earners, you're pretty much screwed.
If the 80% of American households are unable to take back the power that they have gradually conceded, then it will continue like this for the vast majority, who have become the financial minority.
Voting for your prejudices and against your pocket book, just like all those broken asphalt roads, is leading us nowhere fast.
65 comments
manofaran | Aug 25, 2010, 08:04 AM EDT
Good article.
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grandmaguns | Aug 24, 2010, 11:42 PM EDT
Why do you demonize people who have wealth? Look at the Gates, Buffets and many others with money who are giving so much to charity. You have a reverse discrimination against people who worked hard to save, educate themselves and help the less fotunate.
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lindatiffany | Aug 24, 2010, 07:56 PM EDT
That is exactly right.
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McNabb1966 | Aug 24, 2010, 07:23 PM EDT
It's the economy, wingnuts...
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hollabackgurl | Aug 24, 2010, 06:33 PM EDT
I'll be fascinated to see if the Tea Party's blame the Immigrants, Muslims, Sociaists, Gays and the The Dark Lord Obama plan actually works in November. It seems so last century. It's so laughably unrelated to modern life. We'll see.
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Searlit | Aug 24, 2010, 04:45 PM EDT
I like this article, too. It gets down to the brass tacks!
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McNamara31 | Aug 24, 2010, 03:43 PM EDT
Cahir, Good article. During bad economic times the "powers that be" always use diversion from the true problems at hand. It's easier to make the masses believe the problems are caused by the "those people" of the day, than the deregulation, greed and pillage of the investing and banking communities that totally broke America financially, and have "no ethic's" about it.
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Laura Wilson | Aug 24, 2010, 10:40 AM EDT
Yes we are because ALL the Illegals are comming in by the 100's and SUCKING The US dry.
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McNabb1966 | Aug 24, 2010, 09:36 AM EDT
The idea that the problem is tax cuts rather than gross over spending by state governments is laughable. But class warfare is so much fun that the Left just can't resist it. But since reality is optional for Lefties here's the solution: All the wingnuts should go rent REDS and DR. ZHIVAGO and have a good cry. Sorry, we're not having another Bolshevik revolution anytime soon. But if you've got a better country than the USA in mind, don't let us stop you from relocating...
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cartersmate35 | Aug 24, 2010, 09:12 AM EDT
A very good....and TRUE, article. As one in the working class, although retired, I KNOW first hand that Americans are at the point where, if born in the working class level, you will most likely, die there! The upper 2% of this country want and have control, and they are now the party of NO! They will not work with the working class, have no sympathy for those in DIRE need, much less we who work to support their blatant greed!
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JOHNTOBIN | Aug 24, 2010, 08:41 AM EDT
To longislander1940.Surely you are not claiming that fourty percent of the population of the USA are illegal citizens?
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Watchman | Aug 24, 2010, 07:42 AM EDT
My wife and I pay $12,000 for our health coverage, which so far has proved disappointing, to say the least, at the point of delivery. Our mortgage costs us $12,000 a year and our "maintenance" another $12,000. A nice symmetry, you'd have to say. So, given that we also pay federal, state and city taxes, we don't have a whole lot left over from our earnings. But close to where we live are individuals whose income exceeds $10 million a year – and they are far from being among America's richest citizens. Cahir is right. His excellent piece hits many nails right on the head. Sadly, those nails are being driven into the coffins of many families across this "great nation".
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moarts51 | Aug 24, 2010, 12:55 AM EDT
excellent editorial here
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longislander1940 | Aug 23, 2010, 10:36 PM EDT
To JOHN TOBIN: If you have an emergency such as a cough some people go to the emergency room. You are not paying 13,000. 40% of the citizens are the illegals that dont belong here.Unfortunately we accept everyone, except the people that will contribute to this country. The people who have money earned it the hard way, they worked for it. so if your at the other end OH WELL, get a job.I'm worked and now collect social security and a small pension and can vacation and eat. I never asked for welfare or food stamps and my parents came here legally.
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