How America becoming a poor country with time

America is a world’s largest about 21 trillion dollar economy having population of about 328 million. Once and now also considered as a rich country, but evaluation of the social-economic parameters of the American economy tells a different story. Evaluation of social-economic parameters indicates that American economy has become a deep hollow from inside which requires fundamental reforms to bring it on the road. Many evidences has been found are provided here which will help Government to develop policy and programs accordingly. 

 

Major socio-economic evidences

In 2000 (with GDP of about 10 trillion dollar) about 17 million peoples were on Food Stamp/SNAP (food subsidy) and it increases to about 38 million in 2019 (with GDP of about 21 trillion dollars). This clearly shows, even with increase and doubling of GDP and debt of about 27 trillion dollar, more American citizens facing economic hardship with time. Post Covid-19 this may have increased further.

The highest poverty rate by race is found among Native Americans (25.4%), with Blacks (20.8%) having the second highest poverty rate, and Hispanics (of any race) having the third highest poverty rate (17.6%) according to 2018 US Census Data. Whites had a poverty rate of 10.1%, while Asians had a poverty rate at 10.1%. America failed to economically empower their Native Americans even becoming 21 trillion dollar size economy. Covid-19 may have affected all further.

The USDA estimated that 11.1% of US households were food insecure in 2018. This means that approximately 14.3 million households had difficulty providing enough food for all their members due to a lack of resources. Post Covid-19 this may have increased further.

And 29.9% of the population—or 93.6 million—live close to poverty, with incomes less than that of their poverty thresholds.

In 2018, 16.2% of all children (11.9 million kids) lived in Poverty USA—that’s almost 1 in every 6 children. Post Covid-19 this may have increased further.

America thought its currency is utilized worldwide in trade and its currency is strong. So America can print dollar or take debt and use those money to support economy. This was a big historical mistake. America excessively dependent on such artificial liquidity to support economy but this decreases dollar value domestically and made their citizens life economically more miserable with time. Now American earn dollars in thousands in a month but unable to fulfill their all basic expenses from that in American economy. Majority of Americans face problem to save money and lacks saving. About 40% of Americans don’t have enough savings to cover a $400 emergency. Even after more than 120 years of independence the America failed to alleviate their all citizens’ poverty.      

America should implement MEPLRF Model of Economic Governance which will pay monthly income to all households without any debt, subsidy or tax burden on America and their citizens.

Benefits of MEPLRF’s monthly income model

1. Each household family will earn a monthly income.

2. This will be an additional monthly income than whatever they may be earning by their own means.

3. Due to this regular income of families will increase and their purchasing capacity will also increase.

4. This regular income will not have any burden in the form of subsidy, loans, grants or compensation on a country.

5. Due to this all citizens, companies and country will be economically efficient and stable.

6. Do not require to increase tax on companies or citizens.

7. Migration from village to city region will decrease.

8. Monthly income will increase with growth of country periodically.