America Still Works | stockbee


America Still Works

Newspapers and popular bloggers make a career out of scaring the shit out of you. Bearishness always sells. It is more popular. It can always be packaged as more intellectual stuff or as contrariness.
The average person is also more attracted to bearishness and negativity because it allows them to justify their lack of achievement in life. The common hypothesis which is sold by the pessimist is that America is doomed and there is no way the problems in America can be solved.
Here is a real contrarian take on America. A bullish argument for America.

Anyone who reads the serious press about the condition of the US might be excused for believing that the country is headed towards a series of deep crises. This impression is exacerbated by economic slowdown and by the presidential primaries, in which candidates announce bold plans to rescue the country from disaster. But even in more normal times there are three ubiquitous myths about America that make the country seem weaker and more chaotic than it really is. The first myth, which is mainly a conservative one, is that racial and ethnic rivalries are tearing America apart. The second myth, which is mainly a liberal one, is that America will soon be overwhelmed by religious fundamentalists. The third myth, an economic one beloved of centrists, is that the retirement of the baby boomers will bankrupt the country because of runaway social security entitlement costs.

America does, of course, have many problems, such as spiralling healthcare costs and a decline in social mobility. Yet the truth is that apart from the temporary frictions caused by current immigration from Latin America, the US is more integrated than ever. Racial and cultural diversity is in long-term decline, as a result of the success of the melting pot in merging groups through assimilation and intermarriage—and many of the country's infamous social pathologies, from violent crime to teenage drug use, are also seeing improvements. Americans are far more religious than Europeans, but the "religious right" is concentrated among white southern Protestants. And there is no genuine long-term entitlement problem in the US. The US suffers from healthcare cost inflation, a problem that will be solved one way or another in the near future, long before it cripples the economy as a whole. And the long-term costs of social security, America's public pension programme, could be met by moderate benefit cuts or a moderate growth in the US government share of GDP. With a linguistically united, increasingly racially mixed supermajority and a solvent system of middle-class entitlements, the US will remain first among equals for generations to come, even in a multipolar world with several great powers.


Paul Stiles said...

Damn right! The doom and gloom is getting pretty tiresome.

Editor said...

reccessions are good in a healthy economy

Celal Birader said...

You ain't got an economy if you ain't got OIL and the US ain't got OIL.

You can try to steal it or control it but that's too expensive (just check out how much Iraq is costing the US).

Read what Buffett wrote over 4 years ago.

What he said is now coming to pass with the Dollar being thrown to the wolves.

The selling of America has already begun with the sovereign wealth funds.