My solutions to America's decline

Over the past several years I have argued that America is in decline.  Some of you have reacted to this by challenging me to propose a solution.  I’ve heard that criticism and have been looking for one that makes sense.  And now I’ve found it.

It’s contained in a brilliant book by Thomas Friedman and Michael Mandelbaum that has just been published, entitled, THAT USED TO BE US. Their diagnosis of our national travail and their prescription for its remedy are nothing short of remarkable. The basis for their central thesis and its supporting arguments are thoroughly and carefully sourced. 

It should also be noted that they state that they do not know whether their conclusion is fiction or nonfiction.  That, they point out, will be determined by all of us—by the collective actions that we do or do not take.

This column, and those that follow it, will summarize Friedman and Mandelbaum’s thinking.  Let’s start with a selection of some of the trends that disturb them:

25% of high school students drop out condemning them to a life of poverty and social failure.  69% of public school students are taught math by a teacher without a math degree.  75% of young Americans between the ages of 17-24 are rejected by the military because they didn’t graduate from high school, have a criminal record, or are physically unfit. College entrance exams show that only 25% of graduating seniors are ready for college.

In the 1950s and 60s the unemployment rate for men was 9%.  In the recession of the early 80s it was 15%.  Today it’s more than 18%.

In 2001 our national debt was $5.6 trillion.  Now it’s $14 trillion, which is equal to our nation’s Gross Domestic Product.

In 1982 the average household saved 11% of its disposable income.  Today it’s less than 1%.

In the 1950s spending for health care was 4% of GDP.  Today it’s 17% and on a trajectory to hit 30% by 2030.

In 2009 the United States spent more on potato chips, $7.1 billion, than it did on energy research and development, $5.1 billion.

The annual federal spending in research in mathematics, the physical sciences, and engineering is equal to the increase in our health costs every nine weeks.

Thirty years ago 10% of California’s spending went to higher education and 3% to prisons.  Today 11% goes to prisons and 8% to higher education.

The top 1% of Americans now controls 25% of our total income and 40% of our national wealth.  Twenty-five years ago the numbers were 12% and 33%.

We used to be a nation of savers and investors.  We’ve become a nation of spenders and borrowers.

There you have it, a nation in decline and denial.  The columns to follow will tell you how Friedman and Mandelbaum believe we got into this rut and how we can get out of it.

LeRoy Goldman

September 13, 2011

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