Can a country reverse its growth? Because it seems that the United States of America has been. While globalization is helping many countries worldwide develop, America itself is suffering. As a whole, the US is massively in debt to other countries and the majority of its states are on the verge of bankruptcy. Even having only read four cases so far this semester, each adds additional support for America’s economic downfall.
The Enron and AIG crises show political corruption, an increase of which resembles less developed countries. The Nike case exemplifies the newly common practice of outsourcing that American firms have adapted, which takes away jobs from citizens of the US, adding to the country’s increasing unemployment rates. Furthermore, exporting raw materials so that manufactured products can be imported is a pattern common to Third World countries. Wal-mart highlights the fact that while American firms are still making money, their employees are not. The divide between the American upper and lower class is widening instead of closing. Currently, a CEO in the US makes 475 times the pay of the average worker, while in Venezuela CEOs make only 50 times what the average worker earns. Average worker salary hasn’t increased relative to inflation in the past half-century. Due to this increasing inequality, at some point last year, 50 million American citizens were unable to buy enough food to remain healthy.
According to many economists, some main characteristics common to Third World countries include high debt levels, rising unemployment, income inequality, political corruption, and declining public health. According to these criteria and the examples of cases we have read, I would argue that the United States is indeed losing its status as a First World Country.