You're Witnessing the Death of American Capitalism And Don’t Even Know It

American capitalism is in decline due to globalization, stagnant wages, rising consumer debt, and wealth concentration, leading to a precarious economic future for the majority of citizens.

• American capitalism faces a crisis due to globalization, stagnant wages, and spiraling consumer debt.

• The middle class is shrinking, with core tenets of the American Dream like homeownership becoming unattainable.

• Wealth is increasingly concentrated among the ultra-rich, driven by corporate lobbying and the erosion of competition.

The American Dream is increasingly unattainable as the nation grapples with the 'death of American capitalism.' Factors like globalized manufacturing, declining real wages, and mounting consumer debt are eroding the middle class and creating widespread financial stress. Wealth is becoming increasingly concentrated among the ultra-rich, echoing historical patterns that previously led to economic collapse, and without significant reform, the situation is projected to worsen.

The Concept of Capitalism

• 00:00:27 Capitalism is an economic system centered on the private ownership of the 'means of production,' encompassing infrastructure, equipment, resources, and labor. Resources generated from selling goods and services are reinvested to expand operations. In theory, competition among numerous businesses in a 'Free Market' should prevent greed by ensuring fair prices, quality products, and competitive wages and working conditions to attract both customers and skilled labor.

Rise and Decline of US Capitalism

• 00:03:42 The United States became a global capitalist powerhouse, especially after World War I and World War II, fueled by a strong Protestant ethic, industrial growth, and a booming post-war middle class with disposable income. However, the system's decline began with increased globalization, as companies moved manufacturing to developing countries with cheaper labor to maximize profits, sidestepping domestic regulations and tariffs. This offshoring led to massive trade deficits and a significant drop in real wages for many Americans without college degrees, while the costs of goods continued to rise, further exacerbating economic inequality.

Modern Economic Hardships

• 00:07:40 The US has transitioned into a post-industrial capitalist society, characterized by stagnant or falling wages for the majority amidst a cost-of-living crisis, with nearly half of surveyed companies reducing pay rates. A large portion of Americans are experiencing financial stress, working multiple jobs, and facing significant consumer debt averaging almost $90,000 per person. Homeownership is becoming increasingly out of reach, especially for first-time buyers, and homelessness has risen drastically, reflecting the collapse of fundamental American Dream tenets.

Wealth Concentration and Systemic Issues

• 00:11:37 Wealth inequality in the US is escalating, with the richest households seeing increased wealth during the pandemic while average incomes stagnated. Over 700 billionaires hold immense wealth, and the top 1% now owns half of all US stocks and mutual funds. Corporate lobbying influences legislation to maintain tax loopholes and enable practices like share buybacks and monopoly-building through mergers and acquisitions, effectively crushing competition and consolidating power, leading towards a potential 'techno-feudalism' without significant reform.