Saturday, March 25, 2017

Why defend it if it's not working?

India is one of the unhappiest nations on earth, coming in at 122 out of 155 nations. The US is at a respectable 14th place, although it has dropped one place, compared to the last survey. Mortality among white middle-class Americans is increasing. A study by Anne Case and Angus Deaton showed that economic struggles are linked to suicides and alcohol and drug overdoses. Why, when the US is the richest nation on earth? People between 45 and 54 year of age have been hit the hardest as poor job prospects have combined with failing marriages and broken family life to create misery. White non-Hispanic men with an education level of high school or less have been affected the most. Those with 4 year or more of college have not been so affected. Death from drug overdose has soared. In 2015, 52,404 people died of drug overdose, more than the combined mortality of gun related deaths and car accidents. Death from painkillers is the highest but heroin overdose has also increased because it has become cheaper. White Americans have been hit the hardest. Donald Trump has promised to spend $1 trillion on infrastructure but that will not help the middle-class who have been battered by the loss of manufacturing jobs, wrote Ian Bremner. Per capita growth has dropped from 2.3% from 1948-2000, to less than 1% from 2000-2016. Justin Fox quoted Paul Theroux who wrote,"I found towns in South Carolina, Alabama, Mississippi and Arkansas that looked looked like towns in Zimbabwe, just as overlooked and beleaguered." Angus Deaton found that more than 3 million in the US are having to survive on less than $1.90 per day, the international poverty line, so that "life expectancy in much of Appalachia and the Mississippi  Delta is lower than in Bangladesh or in Nepal". Pretty dire. Not everyone is suffering. Those who are rich are getting richer as stock prices have soared to highs not seen for 20 years, not since the dot-com bubble. This was because of record low interest rates to stimulate economic growth and the bond buying program which increased the balance sheet of the Federal Reserve from $900 billion to $4.5 trillion. The Fed raised interest rate by 25 basis points earlier this month which is seen as the beginning of tightening of monetary policy. One reason for the loss of jobs is that the US had a trade deficit of $502 billion in 2016, which means that it is importing most of the goods it needs. That is weakening the economy, wrote Kimberly Amadeo. You would think that since previous policies have produced these dismal figures Democrats would help Trump try new policies, while ensuring that things do not go out of control. But Democrats have decided to adopt a scorched earth strategy to stop Trump at all costs. Not much different from our lot, are they?

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