[Skybird]

Some quotes to help getting this back on track. "Deletion of the social middle class", is one of the slogans.

The United States is experiencing the problem of long-term unemployment for the first time since World War II. The number of the long-term unemployed is already three times as high as it was during any crisis in the past, and it is still rising.

More than a year after the official end of the recession, the overall unemployment rate remains consistently above 9.5 percent. But this is just the official figure. When adjusted to include the people who have already given up looking for work or are barely surviving on the few hundred dollars they earn with a part-time job and are using up their savings, the real unemployment figure jumps to more than 17 percent.

In its current annual report, the US Department of Agriculture notes that "food insecurity" is on the rise, and that 50 million Americans couldn't afford to buy enough food to stay healthy at some point last year. One in eight American adults and one in four children now survive on government food stamps. These are unbelievable numbers for the world's richest nation.
Even more unsettling is the fact that America, which has always been characterized by its unshakable belief in the American Dream, and in the conviction that anyone, even those at the very bottom, can rise to the top, is beginning to lose its famous optimism. According to recent figures, a significant minority of US citizens now believe that their children will be worse off than they are.

Many Americans are beginning to realize that for them, the American Dream has been more of a nightmare of late. They face a bitter reality of fewer and fewer jobs, decades of stagnating wages and dramatic increases in inequality. Only in recent months, as the economy has grown but jobs have not returned, as profits have returned but poverty figures have risen by the week, the country seems to have recognized that it is struggling with a deep-seated, structural crisis that has been building for years. As the Washington Post writes, the financial crisis was merely the final turning -- for the worse.

The boom in stocks and real estate, the country's wild borrowing spree and its excessive consumer spending have long masked the fact that the overwhelming majority of Americans derived almost no benefit from 30 years of economic growth. In 1978, the average per capita income for men in the United States was $45,879 (about €35,570). The same figure for 2007, adjusted for inflation, was $45,113 (€35,051).

Where did all the money go? All the enormous market gains and corporate earnings, the profits from the boom in the financial markets and the 110-percent increase in the gross national product in the last 30 years? It went to those who had always had more than enough already.

While 90 percent of Americans have seen only modest gains in their incomes since 1973, incomes have almost tripled for people at the upper end of the scale. In 1979, one third of the profits the country produced went to the richest 1 percent of American society. Today it's almost 60 percent. In 1950, the average corporate CEO earned 30 times as much as an ordinary worker. Today it's 300 times as much. And today 1 percent of Americans own 37 percent of the total national wealth.

Income inequality in the United States is greater today than it has been since the 1920s, except that hardly anyone has minded until now.

In America, the free market is king, and people with low incomes are seen as having only themselves to blame. Those who make a lot of money are applauded -- and emulated. The only problem is that Americans have long overlooked the fact that the American Dream was becoming a reality for fewer and fewer people.

Statistically, less affluent Americans stand a 4-percent chance of becoming part of the upper middle class -- a number that is lower than in almost every other industrialized nation.

So far, politicians have failed to come up with solutions for the growing social crisis. Washington is still waiting for jobs that aren't coming. President Barack Obama and his administration seem to be pinning their hopes on the notion that Americans will eventually pull themselves up by their bootstraps -- preferably by doing the same thing they've always done: spending money. Domestic consumer spending is responsible for two-thirds of American economic output.

But even though Federal Reserve Chairman Ben Bernanke continues to pump money into the market, and even though the government deficit has now reached the dizzying level of $1.4 trillion, such efforts have remained unsuccessful.

"The lights are going out all over America," Nobel economics laureate Paul Krugman wrote last week, and described communities that couldn't even afford to maintain their streets anymore.

The problem is that many Americans can no longer spend money on consumer products, because they have no savings. In some cases, their houses have lost half of their value. They no longer qualify for low-interest loans. They are making less money than before or they're unemployed. This in turn reduces or eliminates their ability to pay taxes.
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Many people threaten to suffocate under the burden of their debt. Some 61 percent of Americans have no financial reserves and are living from paycheck to paycheck. As little as a single hospital bill can spell potential financial ruin.

I personally think that any president would be relatively helpless in adressing these things for positive effect, even more so how closely he is tied into obligations to lobby groups. Poltiical decisions, that were creating influence in the outcome that now has been acchieved, were made and are being maintained since decades. A historic fixpoint maybe would be the thematic complex of Vietnam, gold reserves and Bretton Woods.