Welcome to the Suburban Depression

[Os Cangaceiros]

The prolonged economic slump we've been in since before the financial crisis really is different than recent recession experiences, especially when it comes to those who now live in poverty.

The official U.S. poverty rate in 2007 was 12.5 percent. Following the calamities of 2008 it climbed upward and kept climbing. By 2009, the rate was 14.3 percent. In 2010 it went to 15.1 percent, according to U.S. Census data reviewed by Pro Publica.

There has not been so large a portion of Americans in poverty since 1993. But this time the growth in poverty is different, hitting whites and suburbia harder than it did during the early 1990s slump. African Americans, by contrast, appear to be doing better.

The poverty rate for whites was 13 percent in 2010. That compares to 12.2 percent in 1993, according to the Census Bureau.

The suburban poverty rate is 11.8 percent, a level not seen since 1967.

http://www.cnbc.com/id/44611633

[Rusty Shackleford]

This crisis is far from over. And here i was a few years ago thinking "could this just blow over?"

When it starts hitting privileged workers(im talking about high salaried and such) in such a way you know this is a DEEP crisis.

[Os Cangaceiros]

Yeah. I think it's significant that it's bled into areas that have rode out the last few slumps without too much impact (due much to the house market crash, as mentioned in the article).

It's maddening though that seemingly everyone in the USA knows on some level just how fucked they are (I mean, even the Tea Party knows this, despite all the misplaced anger and bigotry) but ideas related to "rule of law" and property seem so entrenched that sometimes I don't think anything will ever change here.

[Rusty Shackleford]

the longer the crisis drags on the more things will change. its only been roughly 4 years. If recession happens again in the next year or so, things will change wildly.

[Tablo]

Is it crazy or misinformed for me to say this crisis may be permanent? I don't necessarily think we will see socialism in the next few decades at all, but I really feel like capitalism is reaching a point of permanent decline.

[Rusty Shackleford]

I dont really think its possible for it to permanently be in decline. At some point, if this became so extreme, Another inter-imperialist war would erupt destroying trillions of dollars worth of capital and providing room for fresh investment and a new era of growth.

[RichardAWilson]

Wrong, wrong wrong. Look @ the Japanese. We could follow their path - 2 decades of zero growth. The Italian economy has also gone nowhere in 2 decades. Capitalism isn't in decline, it's just transitioning to a go nowhere phase. Which, on a global scale, it's still going somewhere, the growth is just occurring in Southeast Asia (I.e. China, India, Malaysia, Vietnam) instead of America and Europe.

[Tablo]

I dont really think its possible for it to permanently be in decline. At some point, if this became so extreme, Another inter-imperialist war would erupt destroying trillions of dollars worth of capital and providing room for fresh investment and a new era of growth.
I don't know. I've been reading a lot of Marx lately and it seems Capitalism has been reaching its end. I'm sure it is capable of beating this crisis, but Capitalism isn't efficient or logical in its approach. It is based off of various members of the bourgeoisie simply doing whatever it takes to score some cash. I really doubt the understanding the upper bourgeoisie has of the economic situation of Capitalism. Maybe I'm wrong to be skeptical of them when they are the top exploiters, but I feel like even the top Capitalists ignore a lot of what Marx predicted.


Wrong, wrong wrong. Look @ the Japanese. We could follow their path - 2 decades of zero growth. The Italian economy has also gone nowhere in 2 decades. Capitalism isn't in decline, it's just transitioning to a go nowhere phase. Which, on a global scale, it's still going somewhere, the growth is just occurring in Southeast Asia (I.e. China, India, Malaysia, Vietnam) instead of America and Europe.
You really think so? I feel like Capitalism has gone into Japanese style decline. I know many nations in the east have seen great growth, but China, the nation with the largest growth, has created an economic bubble and it seems like it has limits of its own.

I honestly don't know and I'm by no stretch well versed in Capitalist economics. Maybe it is just stupid optimism, but I feel like there will be some radical change in the near future.

[RichardAWilson]

You're right... we'll see radical change in America and Europe... If our economies don't grow, the jobless rate will still continue rising. We need 3% annualized growth here in America just to create enough new jobs to absorb the young people entering the workforce. -

[Who?]

I dont really think its possible for it to permanently be in decline. At some point, if this became so extreme, Another inter-imperialist war would erupt destroying trillions of dollars worth of capital and providing room for fresh investment and a new era of growth.

I think you underestimate American hegemony.

[Rusty Shackleford]

I think you underestimate American hegemony.
You missed my assertion that if it became so extreme.


American hegemony is also on the decline. Its still top dog but it is still on the decline.

[RichardAWilson]

The Twentieth Century was America's. This is the Chinese Century.