America is bankrupt

1 August 2008

America is bankrupt

Faith in market-think was based on three promises: the free market would bring prosperity for everyone; it would, through international trade, drive out war; and government spending would fall. America has broken all three of these promises. The United States has seen years and years of economic growth, but the underclass has grown as never before. Neoliberal globalisation has not led to peace and the US is one of the world's most warlike countries. Meanwhile, the financial policies of the government have bankrupted the country.

by Ronald van Raak

Ronald van RaakWhen President George W. Bush came into office the US was in budgetary surplus. For financial year 2009, a record deficit of $482 billion is expected, and that after every trick of creative accounting has been applied. To this sum we should in reality add a further $80 billion for the wars in Iraq and the $160 billion needed to get the mortgage crisis under control – another example of financial mismanagement.

Growing poverty within the United States shows the country's social bankruptcy. The wars in Iraq and Afghanistan – in which the Netherlands is also taking part – are expressions of a moral bankruptcy. Now America is financially bankrupt as well. And the source of the world crisis.

Taxes on the rich will be lowered, just as they are each year. The bill for America's bankruptcy will be paid by the poor. In the United States, and in the rest of the world.

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