Economic crisis in America: What are the root causes of problems?
George W. Bush - Press conference about economic crisis
Root causes of economic crisis and financial problems
What are the root causes of economic crisis and financial problems in America? There are many apparent reasons and politicians and people are trying to resolve those. However, it is not enough to resolve apparent problems. One has to search for root causes digging deep. Then only he or she can come to a better solution.
The rich dad America is turning to poor one.
I have already discussed (in other related articles) some apparent reasons of American financial problems that have been converted now into an economic crisis. I like to throw some light on the historical blunders committed by the President and politicians.
Cold war poster
Cold war and supporting dictators
Cold war: There was a cold war between America and The former Soviet Union for forty to fifty years after the second world war. Though it had created tension in the whole world but it also encouraged competition between the two states. The then US governments always tried to break the USSR and they succeeded at last when Gorbachev failed. The US celebrated the whole event. The US became the sole superpower but this was a curse in disguise. The USA started international policing that annoyed most of the nations.There remained no motivation for researchers and willingness to go ahead without a competition. All these, in turn, slowed down the growth.
Supporting the Dictators: Being a democracy America has always advocated the democracy theoretically but in practice, it always supported the dictators. They have supported them in Pakistan, UAE or anywhere else. This Hippocratic attitude has proved harmful to its reputation everywhere.
Even in the war against terrorism US supported General Musharraf in Pakistan who had been engaged in encouraging and supporting terrorism. Now Condolisa has given a statement that General had committed several mistakes. Why had she or her Government supported him throughout?
The American government has given China status of the most favored nation. Is china a democratic country? Why is the US government supporting the rulers of gulf countries who are the dictators? Will American Presidential candidates think?
Barack Obama on phone in the West Wing private study
Women empowerment and Human rights
Women in America are not yet politically empowered. This is the first time when Ms. Clinton was a Presidential hopeful. It is only the first time when a major political party has nominated a female candidate. Alas! She has lost even.
This means half of the population is not yet politically empowered in the US.
Look at the Asian countries like India where a female Premier Indira Gandhi reigned for 15 years and a female President is in the seat now. There are and also there were many female Chief ministers and Governors of States in India. Similarly, female Prime ministers like Benazir Bhutto, Begum Khalida Zia, (Pakistan), Ms. Bhandarnayake (Sri Lanka) and some others ruled the countries in Asian reason.
Though the US advocates for human rights in every international forum, American human rights record is not up to the mark. It must be improved to ensure a good lifestyle to every citizen.
Sailors killed in the Vietnam War
Spending habits of common Amerixans
Spending habit of common Americans: This is the most vital issue, I see the financial problem of the Americans. American people are habituated of spending more and more. They are normally dependent on credit cards and mortgages. No matter how much they earn. They always go for a loan or mortgages. Most of the times they do not even calculate how much they pay in return. The American Nation has a zero saving rate wheres savings rate is more than 23 percent in India!!!
Losing wars continually: America had lost most of the wars it fought directly. Remember the Vietnamese, a very small, underdeveloped and poor country fought against the mighty Americans for 17 long years!!! Could America defeat them? No, not at all. They had to return.
Americans tried it in Afghanistan but could not get a success. They tried it in Iraq, Saddam Hussain was dethroned but still it can not capture Iraq. Even they can not bring peace there or establish a legitimate popular government.
The American President Bush and other politicians still not learned a lesson and trying to start a war against Iran.
(This hub is published on 26 June 2008).
The crisis of credit visualized
Are American women politically less empowered than Indian sub-continent?See results without voting
Understanding financial crisis for kids and grown ups
Links to useful hubs about America and finance
- Why America and Americans are in Financial Problem? Part I
Why Americans facing problem? Economy towards recession? economic crisis? Job loss? Sub-prime crisis?Policy of President Bush? Terrorism?......Problem lies somewhere else too. America needs introspection...a deep thought----route cause analysis---A d
- Why Americans are in Financial Problem? ...
Why Americans facing the problem? Economy towards recession? economic crisis? Job loss? Subprime crisis? The policy of President Bush? Terrorism?......The problem lies somewhere else too. America needs introspection...a deep thought--route causes ana
- Causes of financial problems in America, the US Part 2
Besides apparent there are hidden causes behind the current financial problem of America. A very important is the internet. Blessing in past turned into a curse. Read a reverse angle...well-researched article
- How can America survive from current financial crisi...
America is facing biggest ever financial crisis.Reasons are described in previous hubs of the author in 3 parts. In this hub author describes the path to come out of the financial crisis. A must read hub for all Americans and others interested in sav
- Comparison of Indian economy with US, EU, Canada, Ja...
India is the largest democracy and the fourth largest economy in the world. India has shown highest growth rate in its share market since last seven years. A comparative study of world economy with India.
- Comparison of Indian and American stock markets
Investing in Foreign stock exchanges or in American? Sensex reached 500 marks from its base point 100 with in seven years where as Dow Jones took 46 long years to achieve it . Again journey of Sensex from 500 to 1000 points took only four years but
Comments 17 comments
Root causes of economic crisis and financial problems in America
What are root causes of economic crisis and financial problems in America? What's the solution?
More by this Author
Jaipur, Pink city, India is the gem and jewelry hub, especially for colored stones. Emerald, Ruby, Sapphires, Tanzanite..all types of color gemstones are cut polished and exported....
Why Americans facing a financial problem? Economy towards recession? economic crisis? Job loss? Subprime crisis? Terrorism? The Problem lies somewhere else. Root cause analysis
Dhirubhai Ambani, founder of Reliance industries had seven secrets in business. A must for all entrepreneurs. Learn to grow your business.