2008: The Humbling of America

Over the holidays, I asked my 92 year old Grandmother what she thinks about the current economic climate. As someone who lived through the Great Depression, she feels that our society is now technologically advanced enough to avoid another economic crash. "People are more educated and innovative these days," she explains. But can innovation and technological prowess save us before it's too late?

The sub-prime credit crunch is just the beginning of an overall economic unraveling predicted for 2008-2009. Bush recently signed HR3648 which will ultimately mean that more sub-prime homeowners will walk away from their debt since people will no longer be taxed on the amount of forgiven debt. This will further the spiraling credit crunch, write-downs and glut of homes on the market.

In addition, America is now saddled with the largest debt in its history, China has grown into a challenging world power, more jobs have been shipped overseas, Iraq costs us billions (not to mention the emotional costs), economic disparity is accelerating and more fundamental warnings are released weekly. We are teetering on an economic cliff and it won't take much (inflation? increasing unemployment?) to send us down a slippery slope.

In order to turn things around, interest rates need to be lowered even further, but this would accelerate inflation. We need to balance the budget, but the IRAQ war and high oil prices are the albatrosses around our necks. Tax cuts have benefited the wealthy more than the middle class and poor; we need to rebalance. We need to become more energy independent. We need to allow non-residents a path to legal, tax paying residency.

An optimistic view is that we can still rally this divided nation through innovation, resolve and visionary leadership to overcome seemingly insurmountable obstacles. America, albeit sometimes reluctantly, has risen to the occasion to lead the world in the past.

But, in our current political and cultural environment, what would fill an economic vacuum created by another Great Depression? A Bush monarchy? Totalitarianism? A sweep of Christian fundamentalism? Would the United States become one giant New Orleans type catastrophe? Will we be willing to give up even more freedoms and competent leadership in exchange for safety and comfort? And, maybe even more importantly, would Americans elect visionary leaders that can put us back on track?

Many of us have never lived through such an economic calamity and think we are immune during these modern, prosperous times. Can Americans -- saddled with a corrupted political system and autocratic corporations -- rise to the occasion and pull us out of another Great Depression? If we can bring back the "can do," problem solving, innovative, humanistic, hard working values that used to make America strong, than maybe there would be hope. A Buddhist-like simplicity wouldn't hurt either.

After going through this type of economic fire, America could emerge truly changed with a new responsible corporate structure, honest and humanistic leadership and a cooperative world outlook. Maybe we would even change how money and greed corrupt our political, business, environmental and person domains. Instead of life serving money, have money serve life.

My Grandmother -- and many of those who lived through the crushing economic collapse of the 1930's -- say it was actually a time of community building, focus on family & friends and even happy times. There was still a sense of hope and fellowship.

There is a general malaise in America today -- we feel so disconnected. Wealth and materialism separates us and commodifies everything. A second Great Depression could be exactly the kick in the pants America needs. The humbling of America might just have the unexpected side effect of bringing us together again, necessitating a less meddlesome foreign policy and sparking the competitive spirit.

Real change comes out of white hot fire: the phoenix rising. War, genocide, loss of civil rights, etc. don't seem to be motivating factors to the populace these days. They might need to be hit harder to focus their attention: the pocketbook.

Comments

[jackpinesavage]

The premise of this post is, er, interesting. And it sure would be nice for the worst case scenario filled the half-empty glass back up again.

But things are very much different now than in the 1930's. Most importantly, we feed ourselves differently. There were a great many people during the depression who couldn't afford new shoes for 10 years, but they never went hungry. In fact, many of those people helped feed the displaced industrial workers.

There are not nearly enough family farms to absorb a nation of eaters. And our agricultural system is completely dependent on industrial inputs and transportation.

The other differences have been well said by other posters. But life revolves around eating; today eating revolves around liquidity. No money equals no food. And a hungry mob is an angry mob.

[realitytrumpsbull]

I don't think we need humbling so much as we
need a reformed economic base. You can only replace about so much economic activity with
government handouts before the whole thing eventually goes sour. All the people complaining about the environment are going to be complaining a lot more loudly if the lights go out or you can't get a pair of pants anymore because places like Pakistan won't take goods orders from the US anymore because our credit's bad....cause and effect, common sense, B.S. detectors on double-front, etc...

[JeffDets]

We should give non-residents (I think you mean illegal Aliens) a path way home. Don"t think of it as enforcing the law or protecting American worker"s wages and benefits from cheap foreign labor. Think of it as a jobs program. Millions of job openings that employers will be forced to fill by raising pay, providing better benefits and improving working conditions.

[Spookcatcher]

We are in a Depression. The crash in 1929 only started the trickle down because hardly any common citizen had a dime in the markets. The resulting bank crashes took place for six more years as it spread throughout the world. Had not the scale of the War Hitler waged became so protracted and the U.S. became a fighting force, instead of just propping up the British, we might still be under an economic slave state, with the largest emplyer being the government to build monuments and projects for the rich and their Government coparts. We hve been in an economic foundational crumbling for 35 years, when the Vietnam War was dragging the economy and Big government was already in bed with the MIC and prtecting Corporations assets. That is when the Unions peaked and began selling out to Corporations, at the same time these companies began in ernest moving manufacturing jobs to plants in 3rd world countries. In 1973 Opec sent a shot across the central bankers brow when many of our "intervensions" were beginning to be exposed. The rich Arab Oil Nations had many students in Universities and a good education doesn't take long to figure out the Imperialist Supremist Ideology with which we did business. It is now a full generation of well educated foriegn third world leaders and families and we are in the midst of facing our past policy's blowback. A Depression that would stir Americans to movement may in fact be what the Fascist have designed. The Bush Administration was glad to be tasked with gutting the U.S.Constitution. A Depression could very well be the changeling to lose our Democracy without a bullet fired, much like the Soviet Union did. Its the economy stupid. Andrew Jackson fought the Big banks, and closed the 2nd National Bank down. He faced the Aristocracy of the Elitst North and of the Supremist South and held the Union together knowing, by common sense, not by University Education, that Corporate America meant economic slavery for common people.

[tkennedy]

a rising tide lifts all bloated politicians floating out on Chappiquiddick.

[KRANKY]

The redeeming utility of a genuine "Depression" would be only if it precipitated the type of cultural, economic, and political Revolution needed to overthrow the arrogant, the racists, the bigots, the xenophobes, and the jingoists that have way too muich influence for their numbers.

It is not entirely necessary that this happen, though. I reason that we are currently in flux to marginalize and with finality push to the fringe those elements of backward stupidity, meanness, selfishness, and greed: the collection of social pariahs and criminals called the Republican Party.
If Patriots do this, we can restore our nation on the path of Constitutional democracy; and avoid an economic downturn that always causes the least of us to suffer the most.

[MSB]

As long as people keep voting to enable corporate power instead of voting for candidates that represent citizen rights and not just money, we will keep spiraling toward an eventual civil war.

What do we expect when people won't devote more that a minute at a time to a political commercial soundbyte and continue to vote against their best interests because a candidate will embrace 'god, gays, and guns' while selling Americans out for pennies on the dollar for corporate campaign subsidies? (I got $100,000 in contributions so I will give away a billion in subsidies for the next 4 years!) American voters are largely stupid. If they made an informed vote, most 'leaders' in congress and the administration would be in jail and not in leadership positions.

[whimsicalpig]

I agree with sundial,

What we need is not an economic wooping, as that will impact the poor and middle class and the rich will just move to their winter home in Dubai,

We need a psychological wooping.

we need to be shown what we truely are:
self-centered, greedy, oafish, insensitive thugs that truely believe that the world is OUR oyster.

then, we need to hear what the rest of the world thinks about us.

And then we can begin to turn on those in our society that promote that type of behavior for their own profit.

[MilwaukeeDan]

Mike, when I first started working, it was with several older gentlemen that lived through the Great Depression and two gentlemen that survived Hitler era Germany and the hyperinflation that went along with that. It was an educational experience, to say the least. I have used your last sentence many times in previous comments. I think many Americans need a good beating when it comes to how we spend money and who we elect to lead. The problem I see with your post and my wishes is that the poor and middle class will suffer the most and gain the least once this baptism by fire happens. But they are to blame, many of the poor vote republican due to wedge issues. The way I see it, the government works for maybe the 10-15% that have power and money, the rest get crumbs.

[Sundialsvc4]

I believe that a far more realistic scenario is the =irrelevancy= of America.

"Time marches on," and even if you were a "super-duper power" in your grandfather's day it's an altogether different world now. If you represent a violent and unpredictable heavily-armed threat ... that "just can't figure out what 'torture' is" ... don't expect the rest of the world community to cower at your holy altar.

[nomoredead]

I agree with you Mr. Frick and can see the good that could come. America now is all about gluttony and greed.

[rh654]

Yes - of course - a Massive Depression is what the country needs to straighten it out - wow - I can't believe I haven't thought of that before...

Of course lets see - a Depression would be so devastating to the poor and middle class that you think they have problems now - you ain't seen nothin' yet.

But one thing I will say is that coming out of the Depression - those with the capital to invest will make the killing of the century!!!

[bushisanAhole]

haha. wishful thinking at best. You think people will all of a sudden see the light and elect good leaders? Not as long as they are bought and paid for by the corporations. Greed and corruption wont stop just because our economy collapses, which it will sooner or later. The rich will get richer, the poor will get poorer. When a corrupt government uses fear and economic disparity to keep the people in line, and the people are too weak and stupid to do anything about it, we deserve what we get. If we elect and then re-elect a war mongering criminal like Bush, what do we expect?

[FightingTheRight]

When I was a child, we past an actual "Poor House" on our way to visit my Aunt.

The people that will be humbled won't be the ones who need it.

[MajorKong]

I'm sorry to disagree Mr. Garibaldi-Frick, but I fear the cure would be worse than the disease in this case.