Establishment politicians, such as Barack Obama and Hillary Clinton and the mainstream media are allied against Donald Trump. When he says black, they say white. When he says hot, they say cold. So it should come as no surprise that they equally disagree when he says America’s economy is struggling. Despite that, facts are on his side.
America is hemorrhaging wealth at a terminal rate, and if we cannot stop the bleeding, it won’t be long until it bleeds out. Here are 3 reasons why America’s economy is failing:
GDP is the monetary value of all output (goods and services) made within a region (country or state) during a time period (quarters or years). If this number increases year-over-year, then the economy is growing, if not, it is stagnant or shrinking. In simple terms, the bigger America’s GPD and the faster ir grows, the better.
However, GDP growth alone can paint a misleading picture. Because it does not account for population changes. For example, if the population grew by 2%, then GDP would need to grow by 2% in order to preserve the economic status quo. In effect, the average person would be no better off in this scenario. Real growth occurs when the economy grows relative to the population.
The economy has been slowing down since the 1960s, and this trend is only getting worse. Since the 2010 “recovery” from the great recession, America’s economic growth has averaged an anemic 0.15%. To contextualize this, the economy grew by 0.34%, more than twice as fast, during the Great Depression (1929-39).
2. The rich are getting richer, the rest are left behind.
The bridge of class income inequality in America has been growing ever since 1974, and it is now as bad as it was during the roaring twenties. That’s great if you happen to be the Great Gatsby himself, but if you’re an ordinary fellow, it spells trouble.
Inequality is not necessarily a bad thing, but too much (or too little) has been proven to be seriously detrimental. Too much inequality, and the country becomes dysfunctional and corrupt, like Brazil or Russia. And too little and it becomes sterile and oppressive, like in the USSR or Sweden.
3. We don’t make anything anymore.
America was once the world’s leading industrial manufacturing country. In the past 50 years America cannot compete and has lost it’s lead to continents, such as Asia and the invention of robots that can do the work twice as fast for 0 pay.
In 1979, 19,553,000 Americans worked in good paying manufacturing jobs; in 2015 only 12,300,000 did, an absolute decrease of 7,221,000 million jobs. Many of these workers that lost their jobs ended up in low-paying service jobs, although some just dropped out of the labor force altogether.
Places such as Detroit, look at Cleveland, look at Camden are evidence of how badly the loss of manufacturing affected America’s economy.
The economy is growing at a snail’s pace, inequality is rampant, regular people are poorer now than they were 30 years ago, finding work is a full time job, our industries are lambs at the slaughter, and our trade deficit and national debt are smothering what chance we have left to rekindle the flame of prosperity.
Donald Trump is right: economic ruination is the new norm, and if we don’t do something now, the next generation will inherit a much poorer country than did the last.