UNITED SLUMS OF AMERICA

 There is a larger reason why the West, especially the USA, Britain and some of the other countries in the west are so frightened of the rise of Asia. Not only does it mean the end of their dominance over the world but it also signifies the end of easy money and their rentier type economic systems.

The west invented the rentier economic system when they colonised large parts of the world and just stole whatever they wanted.

A rentier economy is based on a proprietorial rather than entrepreneurial ethos.
A rentier economy is one that receives a large share of income in the form of rent, which is the unearned value within a profit.
Rent can come from external sources, such as foreign entities.
A rentier is the recipient of this income, who obtains it from some other basis than their own productive activity.

In modern Amsterdam I saw that they have quite sizeable and beautiful houses (5 storeys) along their canals which were built 300 to 400 years ago. The grand houses are still in use and today each house is worth about 1.5 million Euros (RM7.4 million).  

These grand houses represent an era when the Dutch ruled the world and stole whatever they wanted to steal from around the world. 

Today a bungalow or even a sizeable semi-detached house in Bangsar could cost close to 1.5 million Euros. In Singapore a two storey 'terrace house' is worth 2.0 million Euros or more. And we have done it without colonising anyone. This is the rise of Asia.

The following video is one hour long. You can fast forward through it. This video shows the urban decay that has set into many places in the United States of America. Parts of many large and famous cities like Chicago, Detroit and Oakland (California) and many, many small towns all across the USA have just become abandoned and broken down.  And hundreds of thousands of Americans in their cities and towns are homeless.

It is a very sad video especially for me because I lived almost five years in the United States and I had friends from places like St Augustine in Florida, Gary in Indiana, Chicago (including South Side), Memphis in Tennessee, plus I have also been to some of these places. Certainly America and the American people have had a great impact on me. Some of these same names appear in this video as suffering from the serious urban decay.

Here is the video. I have some comments after this.

My Comments:

What is happening here is that 'the great equalisation' is taking place.

George Bush Sr once said the American way of life is not up for bargaining. Bush said this in reply to Dr Mahathir who suggested that America was not so great anymore and that they may have to make some adjustments to their way of living or to their standard of living.

I dont think anyone has to "reduce" their standard of living. But all people should reduce their wasteful ways of living. They have to make some new choices. Before it is too late for them. Like those homeless people and abandoned towns in this video.

For example in the USA the average car was huge. Yet it was so cheap. How did they do it? Obviously they got their raw materials at very cheap prices. Now those huge American cars have become extinct. They have been overtaken by more sensible sized Toyotas and Hyundais.  

Up to 50 years ago in 1973 the US used to buy oil from the really dumb Arabs for about 10 US cents per barrel. Then the Arabs woke up and today the Americans have to pay US$72 per barrel of oil. That is 720 times more than what they paid in 1973.  The American standard of living is still high but they have to pay more for it.

But the great equalising game began when the countries of Asia (including Malaysia, China, Korea, Singapore etc)  began producing the same goods and services as the Americans at a cheaper cost and at the same or better quality. Japanese cars are quite unbeatable in their quality. Now Chinese cars as well. Whatever the Americans and the West can make, manufacture, assemble or produce we can do it equally good or better. And at cheaper cost. Especially China. Dont forget Russia too.

This means Americans and the Western people who cannot lower their costs of producing (quality being equal) will become those abandoned towns and homeless people in the video above.

Someone else somewhere else in the world can produce just the same quantity or more and at the same quality or better as you but at a lower cost. This means you are going to become jobless. You are going to become hungry.

Muslim people, if you are reading this, please pay close attention because many of you also think like as though you are Americans. As though you are eligible for some special entitlement.

The world does not work that way. Adolph Hitler was partially right when he said 'Arbeit macht frei'.

Arbeit macht frei means 'Work makes you free'.  

Well, work all you can but you will be 'free' only if you can produce the quantity and quality that is more than the factory in your neighbouring country BUT at a lower cost. 

The equation is quantity, quality and cost. If you miss the cost part (for the same quantity and quality) then you will become unemployed.  You will go hungry.

This is what is happening in the USA now - not to all Americans because the USA is still among the most productive nations in the world - but to a large section of their population.

But most certainly the decay has set in and it is a matter of time before the decay spreads even more through the United States economy and the American society. 

 The views expressed are those of the writer and do not necessarily reflect those of MMKtT.