America’s business is suffering from a massive structural and functional crisis.
As a result, businesses are increasingly losing their competitive edge and leaving America for places with lower wages, lower standards of living, and higher rates of unemployment.
Here are four reasons why America’s businesses are suffering from the crisis.
The Economy Is Rigged.
America’s companies are under a huge amount of pressure to produce at a rate that will make them competitive with the rest of the world, even as they are unable to produce more profitably.
That pressure is magnified by the fact that the American economy has grown too rapidly.
The U.S. GDP has grown by an astounding 3.2 percent annually since 1990, and the unemployment rate for Americans is now 12.1 percent, a level unseen in decades.
At the same time, America’s manufacturing sector has shrunk by an astonishing 57 percent since 1990.
In other words, America is growing faster than ever, while the rest the world is shrinking.
The American Economy Is in a Decline.
America has lost nearly 80 percent of its manufacturing jobs since 2000, while manufacturing employment in other sectors has actually increased.
For example, the number of factory workers has increased by 8.5 percent since 2000.
But the number working in retail has dropped by 2.7 percent.
The number of college graduates working in the U., has dropped 21 percent, while college completion rates are at record lows.
The Job Market Is In a Declining Trend.
American workers are working longer hours for lower pay and lower benefits.
The median hourly wage in the United States is now $27.90, up more than 25 percent from its pre-recession peak.
In the past 10 years, the unemployment and underemployment rates for U. S. workers have been at historic lows, even though many of these workers have received raises in their last few years of employment.
The Government Is Not Doing Enough To Combat Unemployment.
The Federal Reserve has done a very poor job of trying to keep interest rates low, but it still is pumping money into the economy.
In fact, the Federal Reserve spent more than $1 trillion in the last year alone to prop up the economy, including buying government bonds, purchasing dollars, and buying mortgage-backed securities.
It seems as if the Federal Government is not taking any of this money seriously enough.
As we see in the following charts, over the last few months, the Fed has spent $3 trillion more than it has taken out in mortgage- and auto-backed debt.
This is a very high level of excess spending and should be the last thing the Federal government should be spending money on.
It is also troubling that the Fed is now using its $1.4 trillion in TARP funds to buy $5 trillion worth of junk bonds that will never be paid back.
And it is not only the Fed that is spending money to prop the economy up; the White House and Congress are also spending taxpayer dollars to prop it up.
The United States’ economic situation is deteriorating so fast that many of our politicians are not doing enough to fix it.
We need to fix this problem.