One blogger has identified what he believes to be the 11 Long-Term Trends That Are Absolutely Destroying The U.S. Economy. I have condensed it a bit - and the original is a worthwhile read with more statistics then what I have included in this excerpt.
The U.S. economy is being slowly but surely destroyed and many Americans have no idea that it is happening. ... focusing on short-term statistics is not the correct way to analyze the U.S. economy. It is the long-term trends that reveal the truth. The reality is that there are certain underlying foundational problems that are destroying the U.S. economy a little bit more every single day.
11 of those foundational problems are discussed below. They are undeniable and they are constantly getting worse. If they are not corrected (and there is no indication that they will be) they will destroy not only our economy but also our entire way of life. The sad truth is that it would be hard to understate just how desperate the situation is for the U.S. economy.
Long-Term Trend #1: The Deindustrialization Of America
The United States is being de-industrialized at a pace that is almost impossible to believe. But now that millions upon millions of people have lost their jobs, more Americans than ever are starting to wake up and believe it.
Free-trade agreements have not benefited the US at all. The current system is neither "free trade" nor "fair trade". Many other nations impose extremely high tariffs on U.S. goods and put up ridiculous barriers to American products and yet the United States has generally let everyone else openly manipulate currency rates and flood our shores with whatever cheap products they want. The results have been disastrous. Jobs and factories have been leaving the United States at a blinding pace. The United States has lost approximately 42,400 factories since 2001.
Long-Term Trend #2: The Exploding U.S. Trade Deficit
Each month, tens of billions more dollars go out of the United States than come into it. In other words, every single month the United States gets poorer. We have allowed China to become the manufacturer of much of what we buy. Since the implementation of NAFTA in 1994, 300,000 U.S. farms have gone out of business.
Globalism has forced U.S. workers to directly compete with the cheapest labor in the world for jobs.
Long-Term Trend #3: The Shrinking Middle Class
America's middle class is shrinking at an alarming rate. According to a poll taken in 2009, 61 percent of Americans "always or usually" live paycheck to paycheck. That was up substantially from 49 percent in 2008 and 43 percent in 2007. Unfortunately, a growing number of Americans have found it impossible to make it from month to month without direct financial assistance from the federal government.
41 million Americans are now on food stamps. One out of every six Americans is now enrolled in at least one anti-poverty program run by the federal government.
The U.S. Census Bureau says that 43.6 million Americans are now living in poverty and according to them that is the highest number of poor Americans that they have ever recorded in 51 years of record-keeping.
Long-Term Trend #4: The Growing Size Of The U.S. Government
This is a tremendous drain on the U.S. economy. The government produces very little value for the economy and yet costs a colossal amount to maintain. In addition, multiplying government regulations have caused the United States to be a very difficult environment in which to operate a business.
Long-Term Trend #5: The Constantly Growing U.S. National Debt
The United States has accumulated the biggest mountain of debt in the history of the world and every single month it gets worse. According to an official U.S. Treasury Department report to Congress, the U.S. national debt will top $13.6 trillion this year and will climb to an estimated $19.6 trillion by 2015. This is massive debt to be passed onto our children and grandchildren.
Long-Term Trend #6: The Ongoing Devaluation Of The U.S. Dollar
The Federal Reserve constantly destroys the value of the U.S. dollar. Since the Federal Reserve was created in 1913, the U.S. dollar has lost over 95 percent of its purchasing power.
An item that cost $20.00 in 1970 would cost you $112.35 today. An item that cost $20.00 in 1913 would cost you $440.33 today.
Inflation is like a hidden tax. The value of the dollars you are holding right now will decline a little bit more each and every month.
And now that the Federal Reserve is threatening to unleash another round of quantitative easing which is code for counterfeiting, it appears that the value of our dollars will soon be declining even more rapidly.
Long-Term Trend #7: The Derivatives Bubble
The Wall Street reform bill did next to nothing about derivatives and instead imposed hundreds of other useless regulations on Wall Street. Most Americans don't even know what derivatives are. Basically, they are side bets. They have no underlying value of their own. But today derivatives have taken center stage on Wall Street. Our financial markets have become a gigantic casino.
Long-Term Trend #8: The Health Care Industry
The United States health care system is completely and totally broken. It has become a gigantic money making machine for health insurance companies, pharmaceutical corporations and greedy lawyers.
Already, large numbers of health insurance companies across the United States have announced that they plan to increase health insurance premiums in response to the new health care law.
The truth is that the U.S. health care system needs to be totally and completely reinvented. The system we had before did not work. Barack Obama's new health care system will be far worse. Meanwhile, the health care industry is literally choking the life out of the U.S. economy.
Long-Term Trend #9: Financial Power Is Becoming Concentrated In Fewer And Fewer Hands
Once upon a time, the United States had a very diverse financial system. But today financial power is becoming concentrated in fewer and fewer hands with each passing year. More U.S. banks fail every single week. In fact, the number of bank failures is on pace to far surpass the total of 140 U.S. banks that failed last year.
There are now nearly 900 banks (well over 10 percent of all U.S. banks) on the FDIC
list of problem banks.
Meanwhile, the "too big to fail" banks continue to pick up market share. The "big four" U.S. banks (Citigroup, JPMorgan Chase, Bank of America and Wells Fargo) had approximately 22 percent of all deposits in FDIC-insured institutions back in 2000. As of June 30th of last year that figure was up to 39 percent.
Putting an increasing amount of financial power into the hands of just a few elite banks is a recipe for disaster any way you want to cut it.
Long-Term Trend #10: Rampant Corruption On Wall Street
Our financial system has become an absolute cesspool of corruption.
In fact, it seems like new stories of financial corruption emerge almost daily now. For example, just recently Bank of America, JPMorgan Chase and GMAC Mortgage have all suspended foreclosures in many U.S. states due to serious concerns about foreclosure procedures.
Long-Term Trend #11: The Growing Retirement Crisis That Threatens To Bankrupt America
The Baby Boomers may end up bankrupting America after all. A retirement tsunami is coming that threatens to drown our nation in a sea of red ink.
The truth is that Americans have not been preparing for retirement on their own. One shocking new study indicates that Americans are $6.6 trillion short of what they need to retire comfortably. In fact, approximately half of all workers in the United States have less than $2000 saved up for retirement.
So what about corporate pension plans? Are they in good shape? No.
One recent study found that America's 100 largest corporate pension plans were underfunded by $217 billion as of the end of 2008.
But sadly, the pension plans run by U.S. state governments are in even worse shape.
America is very much on the wrong track. We have squandered the great wealth that our parents and grandparents left us and we are wrecking the greatest economic machine that the world has ever seen.
That blogger has outlined some pretty sobering facts.
This is why this upcoming November election is so crucial.
We need to vote out the people who have been in Congress and the Senate who have been creating this mess.
We need to vote out the career politicians, Marxists, Socialists and Progressive Democrats that are destroying this country and turning prosperity into poverty for all.
We need to vote out the people who have created and enabled dependency on government.
We need to vote out the people who have sold out this once prosperous sovereign nation to the globalists.
We need to vote out the people who have fostered an environment which rewards failure and mediocrity.
Come November what path will YOU choose for America? and for your State?