The Fall Of The American Empire
After almost a month without internet at home, some arguments with my mother for neglecting to keep in touch with my family and lots of boring nights, I can’t do anything, but thank those who created the internet. Yes, you’re right and the USA is the theme of this article.
The history of the USA can’t be told without a brief summary of the actual American continent. A couple of years after the new continent was finally discovered by the Spanish fleet led by Cristobal Columbus, Portugal and Spain signed the Tordesilhas treaty which divided those new lands, including the USA, between both of them. However, while these two superpowers were engaged in exploiting the resources of the current Latin America, so the Northern area of the continent was left in a second plan. Thus, taking advantage of this completely forsaking, the two emerging empires came to America. The first British settlement in the new continent was only in the first years of the seventeenth century and the French came a bit before.
Fortunately for the USA, the British kind of colonization was utterly different from that of both Spain and Portugal. Although, at that time, it seemed worse, it granted this colony the mindset and the means to, years later, defy their colonizers and become independent. The fact of the matter is that, whereas the two countries from the Iberia Peninsula wanted to find precious metals and haul it back to their main territories, the United Kingdom would just send, at first, some Puritans and convicts, so they can start their lives over. Then, over the years, those inhabitants decided to claim that land, which ushered them to the American Revolutionary War and, as everybody knows, to their independence on the fourth of July of 1776.
That country was named the United States of America due to the union of the thirteen British colonies to form a new and independent state. From the original formation, with only thirteen colonies, the USA slowly expanded its territory to the current shape of the mainland. In 1849, the California Gold Rush took place giving this country a connection with the Pacific Ocean and, with the population spread across the country, they were set to grow.
America, as they like to call themselves, had only one hurdle to clear before starts rising through the ranks. Slavery was the name of the impasse and its ending was the flagship of Abraham Lincoln’s presidency campaign. He won the election thereby leading the USA to a Civil War, which would afterwards give him the opportunity to abolish this disgrace. Now, there was no obstacle on their way, and turning into a developed country was only a matter of time.
It was time of reconstruction, so they expanded their railway network by 120 thousand miles in just 50 years. Another daunting fact is that in 1840, the only significant manufacturing industries were in the Carolinas and Alabama, and in 1890, their industry output leapfrogged Britain for the first place in the world. Moreover, in 1913, Henry Ford introduced the concept of mass production. So, if you are one of those nostalgic people who love arts and craft or tailored products that’s the guy to hate, but, looking on the bright side, he made our world more efficient. Still, to support all this massive production he now was able to achieve, he needed a consumer society. So, I can imagine how you might be feeling now, this guy is the father of the American Lifestyle, Globalization and Marx’s worst foe, enough said.
At this time, they were one the wealthiest countries, but they still had to prove their importance in the battlefield.
The Second World War arrived so did a paramount chance to the USA to show their power. As winners, America came up with a plan of reconstruction for the European countries destroyed during the worst war ever. The Marshal Plan invested 5% of the back-then American GDP. And, after, literally, burst Japan down in a proof of superiority addressed to other countries, they rebuilt this country and South Korea. It was not enough, so they decided to implement right-wing dictatorships across South America in order to expel any communist uprising in the neighbors. The world was bipolarized between the USA and Russia, it was a time of fear, of nuclear bombs, military investments, rumors that one button pressed and mankind would be extinguished – and to invent the internet!
Gradually, the USSR showed its weaknesses and finally America could rule the world as they had always wanted to. USA and its economists would hold the reins of the world. Freedom of speech, neo-liberalism, Mc Donald’s and Apple would be part of every single person’s life under American influence.
This story could finish here with America setting the rules of the game with its GDP three times as big as the second place. However, they were an easy prey for Osama Bin Laden, the man who, in 2001, shocked the world by killing nearly 3000 people in the worst terrorist attack ever. You might be asking why I sound like he had buried the American Empire. Although the ensuing events, that is, invasion of Afghanistan and Iraq, may lead you to think they are still in control. Let me prove you the opposite step by step, only the Iraqi invasion is estimated to cost $1.8billion per week to the USA government, it means that, since its beginning, it has thrown one trillion dollars down the drain. Besides, frightening the US, Bin Laden, has made them raise their military expenses in a Chinese pace of 9% per year, making it represents 20% of the federal government expenses. This coupled with a slump in the revenues caused by the extended effects of the 2008 crisis has brought the fear that the richest country on Earth could go bankrupt and the government bonds were downgraded by credit rating agencies. In order to you get a bit of perspective; I will give an example of what it means. My whole life as an economics student, I’ve learned that the only riskless assets were the USA government bonds, now they have some risk and, therefore, this concept has become less plausible.
The main point of this whole text is how every empire one day will decline and pale into insignificance compared to the next leader. Egyptians, Greeks, Romans, Spanish, British and French have all been there and couldn’t hold their ground. Hats off to the USA, they still can say they are on top, but for how long? And who is going to replace them is the topic of the next article.
The history of the USA can’t be told without a brief summary of the actual American continent. A couple of years after the new continent was finally discovered by the Spanish fleet led by Cristobal Columbus, Portugal and Spain signed the Tordesilhas treaty which divided those new lands, including the USA, between both of them. However, while these two superpowers were engaged in exploiting the resources of the current Latin America, so the Northern area of the continent was left in a second plan. Thus, taking advantage of this completely forsaking, the two emerging empires came to America. The first British settlement in the new continent was only in the first years of the seventeenth century and the French came a bit before.
Fortunately for the USA, the British kind of colonization was utterly different from that of both Spain and Portugal. Although, at that time, it seemed worse, it granted this colony the mindset and the means to, years later, defy their colonizers and become independent. The fact of the matter is that, whereas the two countries from the Iberia Peninsula wanted to find precious metals and haul it back to their main territories, the United Kingdom would just send, at first, some Puritans and convicts, so they can start their lives over. Then, over the years, those inhabitants decided to claim that land, which ushered them to the American Revolutionary War and, as everybody knows, to their independence on the fourth of July of 1776.
That country was named the United States of America due to the union of the thirteen British colonies to form a new and independent state. From the original formation, with only thirteen colonies, the USA slowly expanded its territory to the current shape of the mainland. In 1849, the California Gold Rush took place giving this country a connection with the Pacific Ocean and, with the population spread across the country, they were set to grow.
America, as they like to call themselves, had only one hurdle to clear before starts rising through the ranks. Slavery was the name of the impasse and its ending was the flagship of Abraham Lincoln’s presidency campaign. He won the election thereby leading the USA to a Civil War, which would afterwards give him the opportunity to abolish this disgrace. Now, there was no obstacle on their way, and turning into a developed country was only a matter of time.
It was time of reconstruction, so they expanded their railway network by 120 thousand miles in just 50 years. Another daunting fact is that in 1840, the only significant manufacturing industries were in the Carolinas and Alabama, and in 1890, their industry output leapfrogged Britain for the first place in the world. Moreover, in 1913, Henry Ford introduced the concept of mass production. So, if you are one of those nostalgic people who love arts and craft or tailored products that’s the guy to hate, but, looking on the bright side, he made our world more efficient. Still, to support all this massive production he now was able to achieve, he needed a consumer society. So, I can imagine how you might be feeling now, this guy is the father of the American Lifestyle, Globalization and Marx’s worst foe, enough said.
At this time, they were one the wealthiest countries, but they still had to prove their importance in the battlefield.
The Second World War arrived so did a paramount chance to the USA to show their power. As winners, America came up with a plan of reconstruction for the European countries destroyed during the worst war ever. The Marshal Plan invested 5% of the back-then American GDP. And, after, literally, burst Japan down in a proof of superiority addressed to other countries, they rebuilt this country and South Korea. It was not enough, so they decided to implement right-wing dictatorships across South America in order to expel any communist uprising in the neighbors. The world was bipolarized between the USA and Russia, it was a time of fear, of nuclear bombs, military investments, rumors that one button pressed and mankind would be extinguished – and to invent the internet!
Gradually, the USSR showed its weaknesses and finally America could rule the world as they had always wanted to. USA and its economists would hold the reins of the world. Freedom of speech, neo-liberalism, Mc Donald’s and Apple would be part of every single person’s life under American influence.
This story could finish here with America setting the rules of the game with its GDP three times as big as the second place. However, they were an easy prey for Osama Bin Laden, the man who, in 2001, shocked the world by killing nearly 3000 people in the worst terrorist attack ever. You might be asking why I sound like he had buried the American Empire. Although the ensuing events, that is, invasion of Afghanistan and Iraq, may lead you to think they are still in control. Let me prove you the opposite step by step, only the Iraqi invasion is estimated to cost $1.8billion per week to the USA government, it means that, since its beginning, it has thrown one trillion dollars down the drain. Besides, frightening the US, Bin Laden, has made them raise their military expenses in a Chinese pace of 9% per year, making it represents 20% of the federal government expenses. This coupled with a slump in the revenues caused by the extended effects of the 2008 crisis has brought the fear that the richest country on Earth could go bankrupt and the government bonds were downgraded by credit rating agencies. In order to you get a bit of perspective; I will give an example of what it means. My whole life as an economics student, I’ve learned that the only riskless assets were the USA government bonds, now they have some risk and, therefore, this concept has become less plausible.
The main point of this whole text is how every empire one day will decline and pale into insignificance compared to the next leader. Egyptians, Greeks, Romans, Spanish, British and French have all been there and couldn’t hold their ground. Hats off to the USA, they still can say they are on top, but for how long? And who is going to replace them is the topic of the next article.