The jig is up. Our post WWII monopoly on capitalism is over.
We've been running on fumes for the last 30 years. It looks prosperous on the outside, but on the inside, it looks ugly.
50 years ago, no one had to work 2-3 jobs to make ends meet. During the 50's and 60's, real wages were going up, our standard of living was rising and everyone was gaining. Of course, it also helped that we didn't have any competition then. Europe and Japan and had just gotten wiped out. China wasn't a factor. We had the playground all to ourselves.
Fastforward to the 70's, and 80's and things start to change. Japan catches up and surpasses us in many important areas. China is waking up.
Now in 2003, the toddlers (China and India) want to grow up and play with the big kids. China saves, invests and works their butts off to achieve our lifestyle. Meanwhile, we're spending like there's no tomorrow, borrowing like it's an entitlement and working harder but achieving less. Credit is the only thing propping up the economy. Without, we couldn't afford our SUV's and palm pilots.
In 10-15 years, a good portion of the middle class will fall into the lowerclass.
You could argue that America always adapts and changes and that we'll find new jobs to replace the old. But we're never had such high global competition before and our finances have never been so out of whack. How can we invest in new technology when we don't save money?
