America at a Crossroads
Published in Seoul Kyungjae
(South Korea) on 3 January 2012
by Hak-in Lee (link to original)
A dark expression had settled on the face of James McGovern, a 53-year-old neighbor I’d known since last new year. This was quite the difference from his usual friendly demeanor. When asked what was wrong, he replied that he had lost his job: The post office where he’d worked for the past 30 years had been shut down. Unable to cope with the yearly deficit of $8 billion, the U.S. Postal Service is now closing down approximately 3,600 post offices all over the country, 10 percent of the national total.
Like Mr. McGovern, the majority of Americans are facing the new year filled not with hope, but worry. With jobs on the decline and social security suffering cutbacks, life is becoming harder for those living at or below middle-class income levels. Some young people who have recently graduated from university haven’t had the opportunity to work proper jobs and are struggling under the weight of their student debts. Meanwhile, their baby boomer parents are growing anxious from plunging housing prices and potential instability in retirement.
A curious event now occurs at Wal-Mart stores toward midnight on the last day of every month. Shoppers form long lines as they wait for the chance to use government-issued food stamps made are available on the first. The CEO of Wal-Mart recently drew media attention by commenting on this phenomenon, saying that “sales for those first few hours on the first of the month are substantially and significantly higher.”
One in six Americans is now considered to be poor, bringing the total number of Americans living in poverty up to 46 million. This number has risen by 20 million in the past five years. Closely related to poverty is the issue of unemployment, which is showing only slow improvements. Economist Joseph Stiglitz of Columbia University has said that the last time in American history that unemployment rates exceeded 8 percent for four consecutive years was during the Great Depression of the 1930s. Although the U.S. is said to be better off than the European countries currently fending off a financial crisis, it is still expected to be stuck with an extremely low growth rate of 2 percent for 2012. If this year’s unemployment rate exceeds 8 percent again, 2012 will go down in history as yet another fourth consecutive year of 8 percent unemployment or higher.
Republicans began their race for the November presidential elections with the opening of the Iowa caucuses. The economy is undoubtedly the central issue of this election. President Barack Obama currently argues that Republican supply-side economics will only deepen America’s economic inequalities, and that the government must play an active role in assisting the middle class. In contrast, Republican contenders, like former governor of Massachusetts Mitt Romney or former Speaker of the House Newt Gingrich, are pushing for change in a weakened America, tax cuts to revitalize the economy and a strong national defense program.
The world’s attention is turning to the choice Americans will make at the end of this year, and how the newly chosen U.S. government will address its many economic challenges. In an increasingly globalized world economy, America’s transformations will also have a great impact on the rest of us.
Like Mr. McGovern, the majority of Americans are facing the new year filled not with hope, but worry. With jobs on the decline and social security suffering cutbacks, life is becoming harder for those living at or below middle-class income levels. Some young people who have recently graduated from university haven’t had the opportunity to work proper jobs and are struggling under the weight of their student debts. Meanwhile, their baby boomer parents are growing anxious from plunging housing prices and potential instability in retirement.
A curious event now occurs at Wal-Mart stores toward midnight on the last day of every month. Shoppers form long lines as they wait for the chance to use government-issued food stamps made are available on the first. The CEO of Wal-Mart recently drew media attention by commenting on this phenomenon, saying that “sales for those first few hours on the first of the month are substantially and significantly higher.”
One in six Americans is now considered to be poor, bringing the total number of Americans living in poverty up to 46 million. This number has risen by 20 million in the past five years. Closely related to poverty is the issue of unemployment, which is showing only slow improvements. Economist Joseph Stiglitz of Columbia University has said that the last time in American history that unemployment rates exceeded 8 percent for four consecutive years was during the Great Depression of the 1930s. Although the U.S. is said to be better off than the European countries currently fending off a financial crisis, it is still expected to be stuck with an extremely low growth rate of 2 percent for 2012. If this year’s unemployment rate exceeds 8 percent again, 2012 will go down in history as yet another fourth consecutive year of 8 percent unemployment or higher.
Republicans began their race for the November presidential elections with the opening of the Iowa caucuses. The economy is undoubtedly the central issue of this election. President Barack Obama currently argues that Republican supply-side economics will only deepen America’s economic inequalities, and that the government must play an active role in assisting the middle class. In contrast, Republican contenders, like former governor of Massachusetts Mitt Romney or former Speaker of the House Newt Gingrich, are pushing for change in a weakened America, tax cuts to revitalize the economy and a strong national defense program.
The world’s attention is turning to the choice Americans will make at the end of this year, and how the newly chosen U.S. government will address its many economic challenges. In an increasingly globalized world economy, America’s transformations will also have a great impact on the rest of us.