Recent developments in both economic and political theatres worldwide are pointing at something that Americans are not going to love. A complete collapse of American economy is imminent. It is not the question of whether the meltdown is going to happen or not. It is the question of ‘when’. We are not big shot analysts of world economy or world politics. With very little knowledge we are still able to see what’s coming. Let us find out the problems and sum up 6 reasons why America will fall.
Reason 1: America’s debt is growing rapidly
We must say that ‘America’s debt is growing rapidly’ is actually an understatement of the grave economic conditions looming on the nation. In fact, the nation’s debt is increasing at an unprecedented rate.
As we are writing this article now, America’s national debt stands at $18,385,897,000,000 (i.e. above 18 trillion dollars). If you want to see the debt growth in real time, head for this link. By the time you land on the page, the debt amount will have grown even more. The chart below will show how the debt increased from 2004 to 2015.
It is predicted that by 2019, the debt will increase to about 21 trillion dollars or more. Back in 2004, this debt was at 7.3 trillion dollars.
Okay, let us show you a slightly grimmer scenario.
What we are going to see in the following chart is how much of debt every American taxpayer had back in 2004 and how much money they owe today. But before we show you the chart, you need to know one thing – America has a new breed of minority population. These people are not blacks or whites. They are not African or Asian. They are not immigrants or natives. They are taxpayers. Sounds weird right? That’s the truth. America has more dependent people than those who earn. Anyway, let us take a look at how the debt of the taxpayers increased since 2004.
It is estimated that by 2019, every taxpayer in USA will be in $161,022 of public debt. As of today, every single taxpayer in USA owes $154,549 to the US government. Here is the chain of events that will eventually happen:
- Government will increase taxes.
- More taxes will mean less to spend and less to save. This means less of wealth accumulation.
- With less to spend, standard of living will fall.
- Initially, the middle class people will be the worst hit. Once they are hit badly and can no longer take the blow, the problem will spill over to the rich.
- The rich people in US are usually people from private sectors with businesses.
- As the rich start paying more tax, they will have less to pay out as wages.
- With wages going down and taxes increasing, economic activities will slow down and at the same time, with lesser and lesser wealth accumulation, the middle class segment of the nation will be thinned out.
Reason 2: America is far from being a Democracy
America is gradually winding up as a totalitarian nation instead of a democratic nation. In 2014, of the total people who were eligible for voting, only 40% ended up doing so. Public opinion goes unheard in the nation. One person and one person alone is capable of declaring war on other nations. According to World Justice Project, USA trails behind many countries when it comes to complaint mechanism, civic participation, right to information, publicized government data and laws. And… it is no longer a hidden fact that US government has increased its surveillance. The government is continuously operating with greater secrecy.
Reason 3: USA is looked upon as greatest threat to world peace
US has a long standing image of fighting abroad. In 2013 GALLUP conducted a worldwide survey and attempted to find out one thing: “Which country in this world is the greatest threat to world peace?” Total 65 countries were included in this poll and the results were:
- World’s number 1 threat to peace: United States of America.
- World’s number 2 threat to peace: Pakistan.
- World’s number 3 threat to peace: China.
So, when US tries to show itself as a country trying to liberate world from problems, the world thinks otherwise. It turns out that USA sends in less of financial aid and more of missiles, bombs, bullets worldwide.