So how will it go down, this mess we're in? Dysfunctional empires can last a long time (Byzantium) or not (the Soviet Union). We've been more violently divided, in 1861, and yet the nation survived, albeit with more than 600,000 killed. America suffered worse governance and severe big-business malfeasance in the decades after the Civil War, but the damage was limited by the decentralization of cohesive small towns, farms and close families, the opportunity of the frontier, rising living standards and finally was reversed by the rise of the Progressive movement. The nation saw worse unemployment and economic collapse once before in modern times, but finally the federal government led by Franklin Roosevelt responded with vigor and effectiveness. And yes, a big war helped. We were mired in Vietnam and finally gave up and still America sailed on, passing two centuries.
Times now are tough and alarmist sentiments are easy. We can always muddle through, can't we? One observer has written glibly about how we'll add another 100 million people in suburban bliss. Most Americans can't imagine a future that's not pretty much like the recent past, maybe with a few wind turbines and solar panels added. Still, I can't think of a moment in history quite like what we now face.
The stock market is swooning again. One reason is sobering enough: Fear of slower growth in China, which has taken the spot held by America for a century, as the nation expected to lead the world out of recession. But the market has been in a secular bear for a decade. The real American economy is a wreck in its fundamentals — something very different from the crises listed above. Before, we were always an economic powerhouse, a petro superpower, and each generation was guaranteed a better standard of living than its parents. No more. Another banking crisis is very possible, as is a new bubble in Treasury bonds. We make so little here now that we can't undo the huge imbalances of debt. The Ponzi scheme has collapsed. Long-term unemployment is a human tragedy and political nitroglycerin. What of the commons has survived the Reagan Revolution is now falling apart. We're mired in two wars that are only the most obvious pieces of untenable military overstretch.
And we know some things. We know the Democrats are unwilling to put together an effective progressive agenda and sell it to America. How could they when so much of the government is now controlled by corporate interests? We know Wall Street and the big banks have gotten away with it, and they will be cooking up new trouble for the economy and expecting the taxpayers to once again pay for their swindles gone wrong. Addressing climate change, building 21st century transit and rail systems, retrofitting suburbia for a peak-oil future, rebuilding our educational, research and manufacturing dominance — nope. Confronted with historic discontinuity and unsustainablity, our course will remain unchanged. The solutions are there — we refuse to undertake them. The confluence of business, political and even cultural interests and forces will make it so. The elites, even in the media, are well paid, live in fine cities and are educated in the conventional wisdom. They are paid to not get it. We know all this.
So, how's it going to go down?