The arrival of Christopher Columbus to American territory in 1492 exposed America to an entirely new world. The English were the first to start the colonization process in this landscape. By the end of the 1600s, the current American terrain had thirteen British colonies. The cruelties of the colonists instigated a civil war in 1775. With massive help from France and Spain, George Washington was able to triumph in this war. Encouraged by this victory, the United States achieved great heights: the Industrial Revolution took place. By the 1940s US economy had touched the skies, and their military was one of the best.
In this new era, with technology at its forefront and education a public right. People have become conscious of their rights, and businesses are facing new challenges due to Globalization. The same old policies wouldn’t work anymore. Several experts have already predicted the fall of America, and they have pointed out the flaws in every institution. In today’s world America has got new competitors, emerging economies like India and Brazil. And China is already the biggest exporter of goods in the world.
Here are some reasons why America is failing as a country:
1. America No Longer Resembles What the Founders Envisioned
America’s younger population no longer envisions a career in diplomacy. Founders wanted us to be a force for good in the world and be a global leader. We need more qualified individuals with a background in diplomacy and international relations to meet our founders’ expectations. The founding fathers wrote the declaration of independence with the vision of making this country a symbol of hope and freedom. Today’s young generation is less interested in the country’s politics, putting the country’s future at risk. It is partially the fault of our current education policies; students have to take loans, which is why fewer students are studying diplomacy.
The forefathers envisioned that this country would set a direction for other countries to follow and that all the nations could live in prosperity and harmony. However, our country heads in the opposite direction, and fewer people are interested in diplomacy and country affairs.
Some people have raised their interests above those of the nation, weakening its foundation. Instead of promoting prosperity and harmony, America gets the blame for the destruction and warmongering in other countries. Moreover, retaliation from middle-east and central-Asia already costs the US vast amounts of money.
2. US Dollar Has Taken a Plunge
There are speculations; what if the damage is irreversible?
What if the raw material gets scarce? What if there comes the most significant recession of all time? Nothing is guaranteed, even the greatest of the civilizations had seen a fall. Throughout history, many great kingdoms ruled the world. Even the Roman Empire saw a fall. The same goes for the US economy. In 1944, the American dollar was as a global reserve currency. There are speculations that the American dollar constitutes 60% of the global reserve currency.
Currently, the USA trades with other countries in exchange for printed dollars. For other countries, if they start creating new money to purchase imports, their exchange value in comparison to the dollar will be minute. Hence, the USA can print giant sums of cash to bolster its military and economic funds. Throughout history, every reserve currency has seen its collapse. If the US dollar sees its failure, we will no longer be able to pay our trade deficits with printed money. Pension and retirement benefits would cut down to one fourth. It will cause a massive public outrage, and the other Global players will seize this opportunity to supersede the United States.
3. Looming financial crisis
In 1929, the US saw its worst market crash, causing the great depression. Economists estimate that the US has seen over six stock market crashes, causing the stock market to lose more than 10% of its value. The most recent one was the stock market crash of 2008. It estimates that global stocks saw a loss of more than 25 percent in its value.
In the 2008 financial crisis, the central banks of the USA bailed out Wall Street. Many Economists estimate that the USA might lose its central banks in the next crisis. In such a scenario, who will bail out the central banks. Over 10 trillion dollars was printed only in the last twelve years to keep the financial system from collapsing. How long do we expect to sustain, failed policies? With the COVID-19, Brexit, and Donald Trump’s presidency, a financial crisis seems inevitable.
The COVID-19 situation will dissolve at some point, but it would take the US economy many years to slowly recover. The reserve bank would need to print even more money, which could also lead the US economy to shut down.
Most experts talk about the necessary steps to prevent the crisis. However, the damage done is irreversible. We should not believe the false narrative that the next election will reverse all our past mistakes. The Rich already know it and have started to prepare for the worst. It is not too late that we also wake up and accept the inevitable conclusion. Perhaps this is the fate of all superpowers for thousands of years. Maybe there is a fall to every rise.