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America’s Middle Class Has Become Globalization’s Loser

From Spiegel On Line International.  Great article.

 A SUPERPOWER IN DECLINE

By Gabor Steingart

At the beginning of the 21st century, the United States is still a superpower. But it’s a superpower facing competition from beyond its borders as well as internal difficulties. Its lower and middle classes are turning out to be the losers of globalization.

There are essentially three exclusive characteristics whose simultaneous development have served as the foundations of the United States’s success up until now — and they only appear in this particular combination in America. They are not only the country’s biggest strengths, but also its greatest weaknesses. It’s worth scrutinizing them more closely. 

First, nowhere in the world can you find such a high concentration of optimism and daring. America is the country that strives hardest for what is new — not just since yesterday (like Eastern Europeans) and not just for the last three decades (like the Chinese); rather from the very instant settlers began arriving. Unabashed curiosity seems to be hardwired into the nation’s genetic code.

The steady influx of the adventurous and hard-working — which helped increase the country’s labor force by about 44 million people since 1980 alone and continues today — ensures a constant replenishment of daring. After all, it’s not just the additional people that make the difference. The mere addition of 17 million people into Germany following reunification in 1990 – newcomers more concerned with preserving their guaranteed rights than with making the extraordinary effort necessary for success – did nothing to foster the kind of daring you see in the United States. Indeed, the result was exactly the opposite, and it has been a painful lesson for Germany.

Second, the United States is radically global. Its very origins — in the rebellious citizens from every country in the world who assembled on the territory that is now the United States — mark its people as true children of the world. Former German Chancellor Helmut Schmidt calls the founding fathers of the United States a “vital elite,” one that continues to pass down its genes to this very day. Their language is dominant, having marginalized Spanish and French during the second half of the past century. Their everyday culture — from the T-shirt and rock ‘n’ roll to e-mail — has peacefully colonized half the world. And from the very beginning, US corporations were eager to venture abroad in order to trade and set up production sites in other countries. Multinational corporations may not have been a US invention, but they became its specialty.

 snip

 The trial of strength

But there is a flip side to the coin. First, Americans are so optimistic that they often blur the line between optimism and naivete. Public, private and corporate debt far exceeds any previously known dimensions. Forever piously trusting in a future rosier than the present, millions of households are borrowing so much money that they end up endangering the very future they’re looking forward to. The lower and middle classes have practically given up on putting aside any savings. They’re going into the 21st century like a poverty-stricken, Third World family, living from hand to mouth without any financial reserves whatsoever.

There’s more and it’s a good read and a warning to us all.

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October 25, 2006 - Posted by | Economy

1 Comment »

  1. Hi Tonid!

    I like your blog. I found it the hard way! : ]

    Hey, none of your links work. and it’s because you have an extra http:// in the link line.

    WordPress puts the http://in for you so when you cut and paste the link into the software it keeps the http://you have at the first of the cut-n-paste. So that give you a line that looks like

    “http://http://yourlink”

    did that make since? ANYWHOZZLE! love your blog! : ]

    Peace!

    Comment by akamat | October 25, 2006


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