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Showing posts with label American Decline. Show all posts
Showing posts with label American Decline. Show all posts

Thursday, March 15, 2012

America's shame


America now has
the highest poverty rate, both generally and for children;
the greatest inequality of incomes;
• the lowest social mobility;
• the lowest score on the UN’s index of “material well-being of children”;
• the worst score on the UN’s Gender Inequality Index;
• the highest expenditure on health care as a percentage of GDP, yet all this money accompanied by the highest infant mortality rate, the highest prevalence of mental health problems, the highest obesity rate, the highest percentage of people going without health care due to cost, the highest consumption of antidepressants per capita, and the shortest life expectancy at birth;
• the next-to-lowest score for student performance in math and middling performance in science and reading;
• the highest homicide rate;
• the largest prison population in absolute terms and per capita;
• the highest carbon dioxide emissions and the highest water consumption per capita;
• the lowest score on Yale’s Environmental Performance Index (except for Belgium) and the largest ecological footprint per capita (except for Denmark);
• the lowest spending on international development and humanitarian assistance as a percentage of national income (except for Japan and Italy);
• the highest military spending both in total and as a percentage of GDP; and
• the largest international arms sales.
Our politicians are constantly invoking America’s superiority and exceptionalism. True, the data is piling up to confirm that we’re Number One, but in exactly the way we don’t want to be—at the bottom.
*****

The American political system is in deep trouble for another reason—it is moving from democracy to plutocracy and corporatocracy, supported by the ascendancy of market fundamentalism and a strident antiregulation, antigovernment, antitax ideology. The hard truth is that our political system today is simply incapable of meeting the great challenges described here. What we have is third-rate governance at a time when the challenges we face require first-rate governance.

America thus confronts a daunting array of challenges in the maintenance of our people’s well-being, in the conduct of our international affairs, in the management of our planet’s natural assets, and in the workings of our politics. Taken together, these challenges place in grave peril much that we hold dear.

The America we must seek for our children and grandchildren is not the America we have today. If we are going to change things for the better, we must first understand the forces that led us to this sea of troubles. When big problems emerge across the entire spectrum of national life, it cannot be due to small reasons. We have encompassing problems because of fundamental flaws in our economic and political system. By understanding these flaws, we can end them and move forward in a very different direction.
*****
Economic growth may be the world’s secular religion, but for much of the world it is a god that is failing—underperforming for most of the world’s people and, for those in affluent societies, now creating more problems than it is solving. The never-ending drive to grow the overall U.S. economy undermines families and communities; it is leading us to environmental calamity; it fuels a ruthless international search for energy and other resources; it fails at generating the needed jobs; and it rests on a manufactured consumerism that is not meeting our deepest human needs.
Americans are substituting growth and consumption for dealing with the real issues—for doing the things that would make us, and the country, better off. Psychologists have pointed out, for example, that while economic output per person in the United States has risen sharply in recent decades, there has been no increase in life satisfaction, and levels of distrust and depression have increased substantially. We have entered the realm of what ecological economist Herman Daly calls “uneconomic growth.” Environmentally, we see a world in which growth has brought us to a situation where more of the same will quite literally ruin the planet. Politically, the growth imperative is a big part of how we the people are controlled: the necessity for growth gives the real power to those who have the finance and technology to deliver it. 
*****
The following transformations hold the key to moving to a new political economy. Consider each as a transition from today to tomorrow.
Economic growth: from growth fetish to post-growth society, from mere GDP growth to growth in human welfare and democratically determined priorities.
The market: from near laissez-faire to powerful market governance in the public interest.
The corporation: from shareholder primacy to stakeholder primacy, from one ownership and motivation model to new business models and the democratization of capital.
Money and finance: from Wall Street to Main Street, from money created through bank debt to money created by government.
Social conditions: from economic insecurity to security, from vast inequities to fundamental fairness.
Indicators: from GDP (“grossly distorted picture”) to accurate measures of social and environmental health and quality of life.
Consumerism: from consumerism and affluenza to sufficiency and mindful consumption, from more to enough.
Communities: from runaway enterprise and throwaway communities to vital local economies, from social rootlessness to rootedness and solidarity.
Dominant cultural values: from having to being, from getting to giving, from richer to better, from separate to connected, from apart from nature to part of nature, from transcendent to interdependent, from today to tomorrow.
Politics: from weak democracy to strong, from creeping corporatocracy and plutocracy to true popular sovereignty.
Foreign policy and the military: from American exceptionalism to America as a normal nation, from hard power to soft, from military prowess to real security.
 James Gustave Speth in Orion. Here

Wednesday, August 10, 2011

Indian behind the Downgrading of America


Credit rating firm Standard & Poor’s, which stripped the U.S. of its top-notch triple-A credit rating on Friday, is headed by India-born Deven Sharma.

The downgrade has sent jitters across governments and investors around the world as they try to figure out what this means for them and whether the downgrade could trigger a major market downturn. Major European governments, for instance, held an emergency meeting on Sunday to chart their plan of action.

Meanwhile, S&P has received a lot of flak for the downgrade, especially from U.S. Treasury officials  who complained there was no justification for it and noticed a $2 trillion error in S&P’s calculation.

In an interview with The Wall Street Journal published on Sunday, Mr. Sharma said the rating cut was in the best interest of investors. “Our ratings are forward-looking. And part of making ratings forward-looking is for the benefit of investors, to give them a view about how we see the future risks of the credit unfolding,” he said.
It remains to be seen what the long-term impact will be but, in the short-term, stock investors have been hurt.

Asian markets were trading lower midday Monday and India’s benchmark Sensex fell to a 14-month low in morning trading, losing 2.7% to touch 16,835.

But who is Mr. Sharma, the president of S&P?  As the company’s president, he also oversees S&P’s analysts in the rating committees. They are the ones who decided to downgrade the U.S.’s credit rating. Mr. Sharma has been at Standard & Poor’s since 2006 as executive vice-president and was promoted to president a year later. Before that, he was an executive vice-president at The McGraw-Hill Companies, S&P’s parent company, for five years.
Shefali Anand in Wall Street Journal. More Here
 Read Q&A With S&P President Deven Sharma here

Monday, February 21, 2011

The sweet story of American Decline


For Now. As things stand, America has the world's largest economy, the world's leading universities, and many of its biggest companies. The U.S. military is also incomparably more powerful than any rival. The United States spends almost as much on its military as the rest of the world put together. And let's also add in America's intangible assets. The country's combination of entrepreneurial flair and technological prowess has allowed it to lead the technological revolution. Talented immigrants still flock to U.S. shores. And now that Barack Obama is in the White House, the country's soft power has received a big boost. For all his troubles, polls show Obama is still the most charismatic leader in the world; Hu Jintao doesn't even come close.

America also boasts the global allure of its creative industries (Hollywood and all that), its values, the increasing universality of the English language, and the attractiveness of the American Dream. All true -- but all more vulnerable than you might think. American universities remain a formidable asset. But if the U.S. economy is not generating jobs, then those bright Asian graduate students who fill up the engineering and computer-science departments at Stanford University and MIT will return home in larger numbers. Fortune's latest ranking of the world's largest companies has only two American firms in the top 10 -- Walmart at No. 1 and ExxonMobil at No. 3. 

The idea that democracies are liable to agree on the big global issues is now being undermined on a regular basis. India does not agree with the United States on climate change or the Doha round of trade talks. Brazil does not agree with the United States on how to handle Venezuela or Iran. A more democratic Turkey is today also a more Islamist Turkey, which is now refusing to take the American line on either Israel or Iran. In a similar vein, a more democratic China might also be a more prickly China, if the popularity of nationalist books and Internet sites in the Middle Kingdom is any guide.

The United States still has formidable strengths. Its economy will eventually recover. Its military has a global presence and a technological edge that no other country can yet match. But America will never again experience the global dominance it enjoyed in the 17 years between the Soviet Union's collapse in 1991 and the financial crisis of 2008. Those days are over.

Gideon Rachman in Foreign Policy. More Here.

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