Tuesday, 17 September 2013

When Economic Systems Collapse

With hindsight, it wasn't that much of a surprise when the Soviet Union collapsed in 1991, Communism was just too expensive to maintain so it fell over dramatically.
Now, there are signs that America is following in exactly the same footsteps that the Soviets trod just over two decades ago.
Where the Soviets were faced with long running wars and with a large, well equipped military to finance, America has been in Iraq and Afghanistan for over a decade costing an estimated $6 billion.
Where the Soviets exported their ideology around the globe, dragging many down with it when it collapsed, America dragged down most of the Globe when its financial sector were caught short.
Where Russia bankrolled many of its satellites, America pays out billions in 'bribes' of various flavours to countries to protect it's interests.     
When the Soviets pulled the plug, the debt to GDP was 20% of GDP which they found unsustainable, Americas debt to GDP today stands at 104% and continue to plough on the same path regardless.
Where the Soviets had large scale public housing so residents were not made homeless when it all fell over, American homes are largely owned by banks and corporations. In 2012, the U.S. Foreclosure Market Report shows a total of 2,304,941 foreclosure filings.
Where the employment in the Soviet Union was predominantly public, in the USA it's widely private so when the economy shrinks, mass unemployment follows. Medicine in the USSR was public with free basic care where in the States you get the medical care you can afford.
The Soviets were self sufficient in energy and exported the surplus and subsidised the fuel costs to make bills affordable where America import 60% of their energy and is privately owned.
I'm not saying things were better under Communism, there were plenty of minuses but America has gone far past the place the Soviets were when they cut their losses and changed track and with the Soviet State bearing much of the brunt of the collapse, the effect on the Soviet public was cushioned to a degree.
The America Government, trillions in the hole and seemingly unable and unwilling to change course, if and when it does collapse, and history shows that all superpowers collapse at some point, will be devastating on an unprecedented scale for America, it's allies and have far reaching consequences for anyone who have their flag tied to the American mast as for those who lived under the old Soviet hammer and sickle.       


Anonymous said...

Wow lots of artistic license in this post Lucy. I'd write something snarky but don't want to deal with the wrath of cheesy. Also seems to be a rash of poor analogies...


Lucy said...

Feel free to point out what you consider to be my poor analogies, just steer clear of references to menstruation.