Financial crisis in America : What are the root causes of economic problems?

What are the root causes of financial crisis and economic problems in America? There are many apparent reasons and politicians and people are trying to resolve those. However, it is not enough to resolve apparent problems. One has to search for root causes digging deep. Then only he or she can come to a better solution.

The rich dad America is turning to poor one.

I have already discussed (in other related articles) some apparent reasons of American financial problems that have been converted now into a financial crisis. I like to throw some light on the historical bloonders committed by the President and politicians.

Cold war: There was a cold war between America and The former Soviet Union for forty to fifty years after the second world war. Though it had created tension in the whole world but it also encouraged competition between the two states. The then US governments always tried to break the USSR and they succeeded at last when Gorbachev failed. The US celebrated the whole event. US became the sole super power but this was a curse in disguise. The USA started international policing that annoyed most of the nations.There remained no motivation for researches and willingness to go ahead without a competition. All these, in turn, slowed down the growth.

Supporting the Dictators: Being a democracy America has always advocated the democracy theoretically but in practice it always supported the dictators. They have supported them in Pakistan, UAE or anywhere else. This Hippocratic atttude has proved harmful to its reputation everywhere.

Even in the war against terrorism US supported General Musharraf in Pakistan who had been engaged in encouraging and supporting terrorism. Now Condolisa has given a statement that General had committed several mistakes. Why had she or her Government supported him through out?

The American government has given China status of most favored nation. Is china a democratic country?

Chinese New year

Why the US government is supporting the rulers of gulf countries who are the dictators?

Will American Presidential candidates think?

Women in America are not yet politically empowered. This is the first time when Ms. Clinton was a Presidential hopeful. It is only the first time when a major political party has nominated a female candidate. Alas! She has lost even.

This means half of the population is not yet politically empowered in the US.

Look at the Asian countries like India where a female Premier Indira Gandhi reigned for 15 years and a female President is in the seat now. There are and also there were many female Chief ministers and Governors of States in India. Similarly female Prime ministers like Benazeer Bhutto, Begum Khalida Zia, (Pakistan), Ms. Bhandarnayake (Sri Lanka) and some others ruled the countries in Asian reason.

Though US advocates for human rights in every international forum, American human rights record is not up to the mark. It must be improved to ensure a good lifestyle to every citizen.

Loosing wars continually: America had lost most of the wars it fought directly. Remember the Vietnamese, a very small, underdeveloped and poor country fought against the mighty Americans for 17 long years!!! Could America defeat them? No, not at all. They had to return.

Americans tried it in Afghanistan but could not get a success. They tried it in Iraq, Saddam Hussain was dethroned but still it can not capture Iraq. Even they can not bring peace there or establish a legitimate popular government.

The American President Bush and other politicians still not learned a lesson and trying to start a war against Iran.

Spending habit of common Americans: This is the most vital issue, I see with the financial problem of the Americans. American people are habituated of spending more and more. They are normally dependent on credit cards and mortgages. No matter how much they earn. They always go for a loan or mortgages. Most of the times they do not even calculate how much they pay in return. The American Nation has a zero saving rate where as savings rate is more than 23 percent in India!!!

I will discuss the issue in details in the next hub.

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(This hub is published on 26 June 2008).