[Vision2020] Poverty In 21st Century America - (reformatted)

[Douglas Stambler]

Poverty In 21st Century America
by Douglas Stambler



Take away the statistics: Inflation, the GNP, the federal deficit.  And what do you have in 21st century America?  An unusual rate of poverty.  Last year, it was estimated that over 50% of all Americans were invested in the Stock Market.  This should come as no surprise: In the mid-1980s, large, American corporations started cutting expenditures by slashing health and retirement benefits, and instead, giving their extra revenue to 401k stock-sharing plans.  But when the market busted in the mid-90s from an under whelming transition to a “virtual economy,” the American worker was caught in the middle of market forces and corporate cutbacks.

Now, in the 21st century, there is talk of powering cars with hydrogen and bombing terrorists, everywhere.  But the real, “next” commodity to trade in America, has to be POVERTY.  Actors trade in talent; metal workers trade in skill; in 2003, Americans will trade in POVERTY.  And, if the current bull market is any indication of how many companies will be adversely affected simply by the FEAR of poverty, just think for a minute how the market will be affected by shrinking employee salaries, shrinking disposable income, and shrinking municipal budgets.  The possibilities are numerous, and the sheer number of Americans who will soon be at or below the poverty level, indicates that indeed, POVERTY itself will be an actual commodity: discussed, debated and experienced at every level of American society.

In 1929, the stock market experienced a unique downturn: it was the first time in American history when gold bullion was being moved by savvy investors to places like Switzerland, Thailand and Australia.  During previous downturns, notably in the 1880s and 1890s, consumer demand was blamed for a national economy that was shrinking in jobs and production.  But what set off The Great Depression was not the flight of gold alone: No, actually, it had a lot to do with an increase in poverty.  As more Americans borrowed on credit for cars and household items in the 1920s, they became increasingly dependent on church benevolent societies and wealthy philanthropists just to get by.  Indeed, it was ironic, that even though more products were in the marketplace, working Americans had less means to pay for those products, and they had far fewer opportunities to earn money to pay for what they wanted for their homes and families.  In other words, the capitalist market structure was by d!
 efi
nition producing commodities at a far greater capacity, than Americans’ ability to pay up front for those commodities.  Hence, consumer deficit.  Hence, poverty.

Poverty in 21st century America is taking root in similar, if not extreme, fashion.  In America’s credit card capitol, Wilmington, Delaware, banks operate almost tax-free, because of Delaware’s historical status as a generous state: Initially, companies that moved to Delaware like DuPont Chemicals were welcomed for their wealth and high society connections.  Taxes were rarely charged in Delaware during the 19th and 20th centuries, because large corporations backed their investments with gold bullion.  Rich people could move to Delaware and not have their luxury purchases taxed at all: Hence, Delaware became host to many large, American banks in the 19th century, and then to credit card companies after WWI.  But the banks succeeded because their assets were backed by gold bullion.  What is absolutely an indication of America’s rapid descent into poverty, is the fact that Delaware’s banks have been backing their assets with CREDIT, instead of gold bullion.  Couple this with th!
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larming trend of stock market purchases being made on credit (margin), and it’s obvious that when the New York Stock Exchange falls again like it did in 1929, the only difference will be that BANKS will not have gold to fall back on: Banks will be virtually locked-in to repossessing the products that Americans have purchased with credit.  In other words, since repossession is the most abhorrent idea to Americans in a capitalistic market, banks will simply merge and also go bank-rupt.  Needless to say, banking problems inevitably result in a shrinking economy: When banks recede, companies produce less.  It’s a fact.

If you understand having to eat instant noodles every day for a month, then you clearly can relate to what poverty is.  The question is, though, how many Americans will go into poverty this time?  And, more importantly, with AIDS at high rates and global warming the cause of the warmest ever Winter in the Northwestern United States in 2002-3, what will be the overall, net effect of poverty this time around?  Mass migration to more prosperous parts of America?  Disease?  Crime?  It’s hard to say, but it’s certain that Poverty In 21st Century America is coming fast, and it might be here to stay.


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