I don’t know enough about economic conditions in Europe to say something intelligent, but unfortunately I’m very pessimistic about the near- and medium-term future of America. There’s nothing on the horizon that will make life better for everyday Americans, who are currently struggling to keep up with the sharp rise in the cost of living in recent years. From tariffs to business uncertainties, all I see is life getting even more expensive, and we might reach a tipping point where everything falls apart. I’m also very concerned about the national debt and the dollar.
All I know is that the 1990s until now have been a bonanza for some people but increasingly difficult for many others. I blame this on the financialization of our economy, with housing policy in America’s coastal metro areas definitely not helping (municipalities restrict supply through zoning and other mechanisms, and the financialization of our economy only exacerbated matters by pouring gasoline on the demand side). This is a failure of our leadership class; I’m not just talking about politicians, but I’m talking about our wealthy, our corporate executives, and even ourselves when we have positions of influence. Collectively the leadership of our country has chosen maximizing their own material benefit at the expense of maintaining a livable society. The result is anger due to Americans increasly having a harder time just getting by while our “leadership” keeps adding to their power and wealth.
Due to anger over establishment politicians, the Republican Party has been completely captured by MAGA, and the Democratic Party has a very vocal left wing that came close to winning the 2016 primary and was a serious contender in 2020.
Unfortunately Trump on a good day is far more destructive than Clinton, both Bushes, Obama, and Biden on their worst days. Trump’s neo-mercantilist economic policies won’t bring prosperity, but unfortunately his stance on “culture war” matters have resonated with large swaths of the American electorate; we’ve long had problems with racism, xenophobia, religious bigotry, anti-intellectualism, and other related issues since the colonial era.
Moreover, despite Trump’s promises in 2016 to “drain the swamp,” Trump is backed by many prominent billionaires and other influential and powerful people. Trump is not a one-man operation; he would have no power without an entire apparatus of GOP politicians and a stacked Supreme Court.
The only thing keeping Trump’s popularity afloat is his relentless attacks on “enemies” of MAGA, such as immigrants, scientists, universities, unflattering media outlets, Democratic politicians, etc. But eventually the fallout of his reckless policies will trickle down to Trump voters in the form of higher prices for goods and services, and either when Trump runs out of enemies or when the MAGA base gets crushed by the weight of high prices and are looking for answers, what are Trump and MAGA politicians going to do?
Unfortunately I don’t see any easy solutions. A return to the pre-2017 status quo ante is only going to lead to the same leadership that led to such anger in the first place. However, staying the course is definitely going to lead to a crash. The solution is going to need to come from the people, but it’s hard for average people in America to compete against systems that entrench the power of our two-party system and that require massive amounts of money to effectively compete. There are no easy ways out of this mess.