Economics & Macro

Is America on the Brink of Collapse?

Paul Abela
Paul Abela
May 21, 2020·12 min read

The Coronavirus outbreak could be the straw that broke the camels back

Lockdown has led to pockets of protests across America. Armed protestors went as far as gathering in Michigan’s state capital demanding an end to lockdown measures. The protestors argue lockdown is a violation of their civil rights, but the protests symbolise something far more pernicious than a civil rights violation. They are a symbol of a broken society on the brink of collapse.
Lockdown has had a debilitating impact on the US economy. 36 million people have now filed for unemployment in the last two months, levels unseen since the Great Depression in the 1930s. America isn’t isolated in feeling the economic wrath of the Coronavirus. The Bank of England estimates unemployment could double in the UK, and the economy could shrink by 14%. Globally, we’re entering a period of economic volatility.

Let’s Make America Great Again

Ronald Reagan’s landslide victory in the 1980 presidential campaign was built on the slogan ‘Let’s Make America Great Again’. His presidency has since changed the face of America.

Ronald Reagan’s 1980 Presidential campaign slogan: ‘Let’s Make America Great Again’

Reaganomics built on neoliberal principles. The idea of deregulation is wealth generated from liberating businesses to do what they do best trickles down to society. We all enjoy the fruits of a free market, so the neoliberal mantra goes.

Reagan laid the groundwork for a neoliberal takeover of American politics by corporate interests. Rather than liberating the free market from the ‘shackles’ placed on it by government, the reality is the market has been rigged in favour of corporate interests. Conservative policies establish a structure where the trickle-down effect is more like the trickle-up effect. Making sure the winners always remain the same.


The American nightmare

Another effect of Reaganomics was the idea of the power of the individual over society. Less government gives people more freedom and ability to control their lives and make their fortune. Reagan was upholding the values of the American Dream, a dream at the centre of the American psyche.


The Corporatocracy

America has become a Corporatocracy, where decisions are centred around corporate interests. Embedded in this structure are greed and the self-interests of a minority.


The brink of collapse

With a disillusioned electorate, rampant inequality and a government corrupted by corporate influence America is a system teetering on the edge. Donald Trump is a symbol of the complete takeover of American politics by corporations. His campaign to ‘Make America Great Again’ is Reaganomics on steroids.

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Paul Abela
Paul Abela

I work in the Renewable Energy Space for a major disruptor of the energy industry in the U.K. I'm a change-maker seeking to support a transformation to a low carbon sustainable economy. I believe in the power of the written word to create that transformation.

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