Economic crisis in America: What are the root causes of problems?

George W. Bush - Press conference about economic crisis

President George W. Bush delivers a statement at the White House Tuesday, Sept. 30, 2008, regarding the economic rescue plan. Said the President, "We're at a critical moment for our economy, and we need legislation that decisively address the trouble
President George W. Bush delivers a statement at the White House Tuesday, Sept. 30, 2008, regarding the economic rescue plan. Said the President, "We're at a critical moment for our economy, and we need legislation that decisively address the trouble

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

Photo depicting cold war in symbol. Flags of the USSR and the US
Photo depicting cold war in symbol. Flags of the USSR and the US
Cold War Sign
Cold War Sign | Source

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

From his private study, the President calls governors hit hard by the economic crisis. The Ovale Office in the background.
From his private study, the President calls governors hit hard by the economic crisis. The Ovale Office in the background.

No.1 cause of American financial crisis.

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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

Members of the U.S. Navy Ceremonial Guard fold the American flag over the casket bearing the remains of sailors killed in the Vietnam War during a graveside interment ceremony at Arlington National Cemetery. Lt. Dennis Peterson, Ensign Donald Frye an
Members of the U.S. Navy Ceremonial Guard fold the American flag over the casket bearing the remains of sailors killed in the Vietnam War during a graveside interment ceremony at Arlington National Cemetery. Lt. Dennis Peterson, Ensign Donald Frye an

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?

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Understanding financial crisis for kids and grown ups

Comments 17 comments

DK 7 years ago

Jyoti Kothari,

I agreed.

Americans have to change their spending habits. There is no option left but to do that. This is the root cause of their financial crisis.

Thanks,

DK


JYOTI KOTHARI profile image

JYOTI KOTHARI 7 years ago from Jaipur Author

Dear Ajay,

Thanks for your comments. Your comment is in line with my hubs. I agree that this is the beginning of American supremacy.

Thanks,

Jyoti Kothari


Ajay Srivastava 7 years ago

Failure of American Model in every aspect is the root cause of the present politocal and finanacial crisis in most part of the World. American model is absed on self interest, greed and recklessness to foster their superiority. It corrupted the business environment as well as the governments in Middle East & Africa. This is the beginning of the end of American supremeacy. NO DOUBT.


JYOTI KOTHARI profile image

JYOTI KOTHARI 7 years ago from Jaipur Author

Hi Pritesh,

Americans look for a change through their new President Obama. It will be in the best interest of the US and other countries too not to support dictators. It will encourage democracy globally.

Thanks for commenting.

Jyoti Kothari


Pritesh 7 years ago

Jyoti,

America has learnt a lesson and will not support dictators all over the world!!

Thanks for a thinkful article.

Pritesh


JYOTI KOTHARI profile image

JYOTI KOTHARI 7 years ago from Jaipur Author

Hi, Earnesthub,

America is paying price of interfaring. It is the law of nature that every action has equal and opposite reaction.

What America has seeded for last 60-70 years, it has to reap it. If seeded thorn how can you get lotus.

Thanks for thought provoking comment.

Jyoti Kothari


earnestshub profile image

earnestshub 7 years ago from Melbourne Australia

Hello Jyoti, you have made some very good observations! America has created many of the despots and made most of it's problems by interfering in other countries affairs with the sole aim of making money with no thought for the long term consequences. They are now paying the price of their interference.


JYOTI KOTHARI profile image

JYOTI KOTHARI 7 years ago from Jaipur Author

hi forlan,

I do not think so. They can eradicate Taliban if act honestly. In fact, Taliban was created by the US in 80's.

Jyoti Kothari


forlan profile image

forlan 7 years ago

i think america will be defeated by taliban


linjingjing profile image

linjingjing 7 years ago

Financial problem of America The insider Part 3

Writing a very interesting


Mohit Mishra 8 years ago

Woman america should more politically empowered like Indian sub continent.


nancydodds1 profile image

nancydodds1 8 years ago from Houston, Texas

Its very nice and informative. I had gone through your profile i got more idea on financial problems. Thanks for sharing this hub.


shruti 8 years ago

I have read all 3 parts of the problem and 1 of sollution. Wel-researched and brain-storming articles.


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JYOTI KOTHARI 8 years ago from Jaipur Author

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JYOTI KOTHARI 8 years ago from Jaipur Author

I think you are right. The Japanese should understand that their future lies in Asia and not in America.


Nagao saka 8 years ago

We Japanese should learn that America can not be our God father. If we depend more on them we will drawn.


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Trsmd 8 years ago from India

very good and informative hubpage

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