Boulevard of Broken Dreams
The average American—which is to say the kind who is not rich—is still reeling from the effects of our nation's monetary near-meltdown. That's why the Democrats are in danger of losing their majorities this year and why the Republicans lost theirs two years ago. Politicians can blame whoever they want—previous administrations, China, the liberal elite—but the fact remains that half of Americans no longer believe in the American dream.
nature.org
For years, Americans were told that our spending was what kept the economy afloat. Yeah, we binged on cheap, freely available credit, but I think we might be excused for believing it was the patriotic thing to do. In the wake of September 11, didn't our president plead with us to continue participating in the economy, "to go to Disney World?" And even now, with consumer dept at record highs, we're exhorted to spend. But we can't. We just don't have the money anymore. We're paying bills, cleaning up our credit, and fending off bill collectors. We know now that we were a piggy bank and we were robbed, and we're not going to let you do it again. Sure, we're still the U.S.—we love cars and shiny new Apple products—but tapped out is tapped out. And don't forget, we're saving for the next economic tsunami. As Nate Silver wrote in The New York Times: "The U.S. economy is predominantly driven by consumer spending, which accounts for approximately 70 percent of all economic growth. But if consumers are to continue to drive the economy, they must be in a sound financial position; if they become overburdened with debt, they are not able to maintain their position as the primary driver of economic growth."
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