The Downfall of The American Middle Class

Few people would ever believe that America’s days of power, world domination and prosperity are at an end. But the storm clouds of doom have been building for decades now, well before the end of the Soviet Union.  However, it was never our adversaries who led us to destruction but our own willingness to give in to the temptations of selfishness, greed and gluttony.

Loss of Skill and Talent

Beginning in the 1960’s or so, the captains of American industry began sending American jobs across the borders to exploit the pools of cheap labor found in great abundance. At the time, the American economy could withstand the financial stress such out-sourcing entailed, but the nation as a whole began a slow decline in terms of national know-how and industrial skill - the very resources responsible for the country’s winning of World War II.

Of course the country survived, but it was in a less competitive position compare to the decades before.  No one seemed to notice much, until they, or someone they knew, actually lost their job as a consequence. The problem would occasionally make the evening news, but it was only one industry at a time, with a plant closing here, a big layoff there.  Unions were blamed for demanding high wages and benefits.  Generally they were more the victims and scapegoats of the exodus, rather than the instigators.

What was a trickle, soon became a flood, with the advent of the Tri-Lateral Commission, the World Trade Organization, the World Bank, NAFTA, multi-nationals, and every other interest group promoting unrestricted outsourcing, under the misnomer of “free trade”. 

The crowning achievement of those undermining the preeminence of the United States were the CEO’s and bean counters who advocated outsourcing the expensive scientific and technical jobs around the beginning of the 21st Century.  Suddenly, it was no longer cost effective to keep money in America for the benefit of Americans.  Money was funneled into China, India, Russia and other developing nations in a mad rush to trim expenses and enhance the short term bottom line.

The Big Crunch

Around 1999, the first signs of instability showed themselves in the dot-com bubble, evolving from the rapid expansion of business into the internet driven marketplace.  A lot of good and services were sold and hired on the basis of credit, debt and wild speculation. As one dot-com company after another began to fold, the information technology workers from the Y2K project were wrapping up their contracts, with little prospect of near term future employment.  The result was a chain reaction of bankruptcies, stock devaluations and massive layoffs.  To add to the economic misery of the United States, the technology jobs which were still viable were considered “too expensive” to maintain in country, and were often shipped to other countries.

Programmers and information specialists found that their expensive education often had a limited lifetime of usefulness.  It was no longer a wise investment to take on thirty thousand dollars worth of student loans for a job that would not be able to pay it off in less than five years.  Some went into healthcare, the arts, massage or fast food.  Colleges saw declines in enrollments, and had to consider cutting back on faculty and research - resources also vital to our national vitality and security.

The Failed Experiment

Since the 1950’s to today (2006) America has transformed itself from an agricultural and industrial economy, into a provider of services. Services, like perishable goods, have no lasting intrinsic value.  No tangible wealth is created from services. Hence, the United States has committed economic suicide, and only now realizes that it is dying. What began as a bold experiment in self-determination and rule by the people, has ended in the shambles of arrogance, foolishness and stupidity.

What To Do . . .

. . . while you’re waiting to die? Enjoy life, as best you can. Those who have little alternative will continue to borrow money and buy on credit.  What happens when much of America is broke and bankrupt?  Well, the folks left holding all of the IOU’s will realize that they can’t afford to put everyone in jail, prison or the poor house.  They don’t like paying the taxes any more than anyone else.  They can only send collectors so long if no one can make it worth their time. And they dare not kill people outright, less they risk triggering an all-but-inevitable revolution.

Eventually, the owners of America will realize their foolishness, and seek to restore order to the system.  They will arrange the next system so that they are still in control, but will allow others the means to make a living and enjoy life themselves.  To do anything else would be to risk a most dreadful revolution and the unpredictable calamity which such revolts inspire.

Not America

OK, so what happens in the rest of the world?  The Europeans breath a heavy sigh of relief.  After listening to three-hundred-million ugly Americans thump their chests, and thumb their noses at the rest of the world, for nearly two hundred years, they will rejoice at our recent discovery of humility. They may even offer some sympathy and advice. The Indians and Chinese will be somewhat grateful for our downfall, before going to war with one another.  After all, it was American dollars which brought their industry and economies into the 21st Century, and they will likely not forget us too soon. However, once our money stops flowing outward, their own economies will be challenged to handle the stress of being self sustaining. Their is a risk of world-wide recession, if not global depression.

Borderline and former communist countries may return to many of their old ideologies, fearing to tread the full path of unrestrained market economies.  Some parts of the U. S. may become socialist, anarchistic or explore some other radical ideology.  There will likely be bloodshed, but perhaps not as much as might be expected.  People are becoming too civilized for that, at least until their children start to suffer. Then all hell breaks loose!

January 20, 2006

This site was last updated on Saturday, January 21, 2006.

Copyright 2006, Larry Gilstrap
 

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