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Third World America: How Our Politicians Are Abandoning the Middle Class and Betraying the American Dream [Hardcover]

Arianna Huffington
5.0 out of 5 stars  See all reviews (2 customer reviews)

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Book Description

Sep 7 2010
It’s not an exaggeration to say that middle-class Americans are an endangered species and that the American Dream of a secure, comfortable standard of living has become as outdated as an Edsel with an eight-track player.  That the United States of America is in danger of becoming a third world nation.
 
The evidence is all around us:
 
Our industrial base is vanishing, taking with it the kind of jobs that have formed the backbone of our economy for more than a century; our education system is in shambles, making it harder for tomorrow’s workforce to acquire the information and training it needs to land good twenty-first century jobs; our infrastructure—our roads, our bridges, our sewage and water, our transportation and electrical systems—is crumbling; our economic system has been reduced to recurring episodes of Corporations Gone Wild; our political system is broken, in thrall to a small financial elite using the power of the checkbook to control both parties.
 
And America’s middle class, the driver of so much of our economic success and political stability, is rapidly disappearing, forcing us to confront the fear that we are slipping as a nation – that our children and grandchildren will enjoy fewer opportunities and face a lower standard of living than we did.
 
It’s the dark flipside of the American Dream – an American Nightmare of our own making.
 
Arianna Huffington, who, with the must-read Huffington Post, has her finger on the pulse of America, unflinchingly tracks the gradual demise of America as an industrial, political, and economic leader.  In the vein of her fiery bestseller Pigs at the Trough, Third World America points fingers, names names, and details who’s killing the American Dream.
 
Finally, calling on the can-do attitude that is part of America’s DNA, Huffington shows precisely what we need to do to stop our freefall and keep America from turning into a third world nation.
 
Third World America is a must-read for anyone disturbed by our country’s steady descent from 20th century superpower to backwater banana republic.

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“A voice of conscience in a time when we need conscience more than ever. . . Arianna Huffington is right: it’s not too late for citizens to wake up politicians or to take matters into their own hands.  Time is short: read this book now.”
--Elizabeth Warren -- Harvard Law School professor and author of The Two-Income Trap
 
“Luckily for Congress, the White House, and Corporate America, no one reads anymore, because if people discover this book, America will become a very different place.”
--Bill Maher
 
“Restoring the values that have made America strong – a thriving middle class and a sense of basic fair play – are of crucial importance to all Americans, left and right.   Third World America is a powerful plea for our country to wake up so that we can change course -- before it’s too late.”
 --Joe Scarborough
 
“Politicians talk endlessly about “protecting the middle class,” yet, over the last 30 years, the middle class has taken a relentless pounding. In precise, graphic, and shocking terms that will bring the crisis home to everyone, Arianna Huffington explains why: special interests have become too powerful, money dominates our politics, and there is no sense of empathy or even shame amongst our elite.  The national spirit that built America. . . lies in tatters. Turning this situation around will require strong new leadership.  How long will that take?  That depends on you - read this book and push hard for change”
--Simon Johnson –  professor of economics at MIT Sloan School of Business and co-author of 13 Bankers
 
“Arianna Huffington is one of the very few people in America committed to say things the way they are and to expose the monstrous elephants in the room ignored by the dominant discourse. Even rarer, she does so in a lively,  engaging, and, mostly, charming way.” 
--Nassim Nicholas Taleb, author The Black Swan
 
“Third World America is simultaneously hard-hitting and empathetic.  It makes the case that, as the world's largest economy fights to define its future, a viable middle-class is essential to our country's well-being and something we should all fight to ensure.”
--Rob Johnson -- Senior Fellow and Director of the Project on Global Finance at the Roosevelt Institute
 
“The quick wit and sharp critique of Arianna Huffington will now be heard where they are needed most -- in defense of our quickly disappearing middle class. Taking direct aim at the misguided policies that have protected the plutocracy at the expense of the middle class, Arianna explains in stark language where we will end up if we don't change course. A must-read for all concerned citizens and thinkers. “
 --Eliot Spitzer, former Attorney General and governor of New York.
 
 
“With great passion and insight, Arianna tells it like it is. Blending outrage and optimism – indignation at how America’s crony capitalists have wrecked the nation’s great middle class, and unremitting hope that our people will rise and put things right – she explains what’s happened and what must be done. Here, clearly, is a book for our times.”
 --Robert B. Reich, Professor of Public Policy, University of California, Berkeley, and former U.S. Secretary of Labor
 
 
 “An alarming account of the plight of the American middle class.”
--Joseph Stiglitz, professor of economics at Columbia University and Nobel Laureater

About the Author

ARIANNA HUFFINGTON is the cofounder and editor in chief of the Huffington Post, a nationally syndicated columnist, and the author of thirteen books. She is also the cohost of Left, Right & Center, public radio’s popular political roundtable program. She was named to the Time 100, Time magazine’s list of the world’s one hundred most influential people, and to the Financial Times’s list of fifty people who shaped the decade. Originally from Greece, she moved to England when she was sixteen and graduated from Cambridge University with an MA in economics. 

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4 of 4 people found the following review helpful
5.0 out of 5 stars Can Canada become a Third World Country? Nov 2 2010
By Suhail Zubaid AHMAD TOP 500 REVIEWER
Format:Hardcover|Amazon Verified Purchase
Absolutely!

In her most recent and easy to read book, Arianna Huffington, co-founder of opinion maker Huffington Post and one of the most influential women of the USA, explores how inefficiently the governments in the USA are being run and how real is the threat that the USA can become a Third World country very soon. She attributes the current economic fiasco of the US simply to one aspect - successive US Governments being run under heavy influence of lobbies, financial and manufacturing cartels, special interest groups and the like.

She goes on to show how President Obama gave in to the same groups and did not invest in improving the crumbling infrastructure, school system, and encouraging bringing new ideas to the land by immigrants. But she does not paint a gloom and doom scenario altogether. She gives many encouraging examples of individuals, small businesses, and niche corporate players who are improving the lives in the USA without any help from the government.

So now I can defend my answer to the question I asked at the outset.

If Canadian politicians become pawns in the hands of special interest groups, such as price gouging gas companies, and the Central Bank decides to increase interest rate at its whim at a time when most Canadians have just moved into their new homes or have started new businesses under the encouragement of the Federal and provincial governments, like it did last few times, then there is a possibility that average Canadians will be hit too badly to recover at all.
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5.0 out of 5 stars Third World America Oct 28 2012
By Andrea
Format:Paperback|Amazon Verified Purchase
I purchased this book for a business admin course I'm taking in university. I chose the book of a course list, the book was awesome! A great insight into the economy! As a Canadian, it made me realize how much better we have it than they do in the States. I would recommend this book to anyone who enjoys reading about current events, and especially to someone who reads the Huffington Post, since the book is by the founder, Arianna Huffington. As well, if you're going to purchase this book, I recommend 110% you order from Better World Books, through Amazon. The book was brand new, cheap, and delivered promptly!!!
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Amazon.com: 3.8 out of 5 stars  54 reviews
190 of 217 people found the following review helpful
5.0 out of 5 stars How to Thwart the Assassins of the American Dream Sep 7 2010
By Janet M. Tavakoli - Published on Amazon.com
Format:Hardcover
Arianna Huffington paints a grim picture of the State of the Union: "Every day, Americans, faced with layoffs and tough economic times, are forced to use their credit cards to pay for essentials such as food, housing, and medical care--the costs of which continue to escalate." P. 77.

Our mediocre grammar school and high school educational system continues its downward slide. The Great Recession is squeezing school budgets.

Meanwhile, multi-national corporations avoid taxes, while enjoying bailout loans and fat government contracts.

The over-hyped American Recovery and Reinvestment Act of 2009 earmarked only $72 billion of the $787 billion appropriation of taxpayer dollars to projects to improve the country's infrastructure.

Top subprime lenders included Wells Fargo; Countrywide, purchased by Bank of America, Washington Mutual, now part of JPMorgan Chase; CitiMortgage, part of Citigroup; First Franklin (now closed), purchased by Merrill Lynch, which was purchased by Bank of America; ChaseHome Finance, part of JPMorgan Chase; Ownit, partly owned by Merrill Lynch, which was later purchased by Bank of America; and EMC, part of Bear Stearns, which was purchased by JPMorgan Chase. Most of the rest depended on massive loans from Wall Street. Many of these lenders were sued by states for fraud and paid billions in settlements.

According to trade publication "Inside Mortgage Finance," top mortgage backed securities underwriters included now defunct Lehman Brothers, Bank of America's Countrywide Securities, Morgan Stanley, Bank of America's Merrill Lynch, JPMorgan's Bear Stearns, and Goldman Sachs.

This doesn't even include collateralized debt obligations (CDOs), and structured investment vehicles (SIVs) and credit derivatives, all of which amplified losses.

Fannie and Freddie do not make loans. They purchase mortgage loans and earn fees for guaranteeing payments on the loans. In 2006, Fannie and Freddie accounted for 33% of total mortgage backed securities issuance. In the first half of 2010, they accounted for around 64% of new issuance. They were forced to pick up the slack and buy more when Wall Street's private label securitization Ponzi scheme blew up. Fannie and Freddie did not create the housing bubble, and they are now Wall Street's dumping ground.

At the start of the meltdown, the IMF and the U.S. administration estimated losses of $2 to $2.5 trillion. Unemployment and the losses are now shockingly worse. What was merely a recession escalated into the Great Recession.

According to William K Black, after the much tinier S&L crisis, there were over 1,000 successful felony prosecutions, several thousand successful enforcement actions, and roughly 1,000 successful civil actions. This time Congress gave us the Great Cover-up. Bank officers dodged jail time and collected billions in bonuses.

Third World America: How Our Politicians Are Abandoning the Middle Class and Betraying the American Dream names the culprits and gives a roadmap for solutions. Congress must start over on financial reform, regulate derivatives, commodities trading, break-up the Too Big to Fail financial institutions (update Glass-Steagall), and more. We deserve better than a third world economy divided by ultra-rich on one side and debt-ridden middle class and dirt poor citizens on the other.

We'll need a Constitutional amendment requiring full public financing for political campaigns (for starters). Our politicians have shown us how willing they are to be owned by special interest groups that will buy votes, buy a campaign, or just buy them off. As Arianna Huffington explains: "If someone's going to own the politicians, it might as well be the American people." (P. 172)
105 of 122 people found the following review helpful
5.0 out of 5 stars Blood On Our Hands Sep 8 2010
By Bobby Lexington - Published on Amazon.com
Format:Hardcover
The current chapter being written about the American man of 2010 is haunting. Huffington shows us how the very political system our Founders created has been hijacked and used to fill the pockets of those soulless enough to steal from their own (see the Right Wing). The system no longer works for the middle class. Our politicians simply do patchwork, reacting to what the media says--putting their fingers on a different leak everyday. It has become apparent-- and Huffington points this out--that running for, and taking office, is nothing more than a way to protect one's financial interests--or better yet--to line one's own pockets. Huffington articulates this pervasive corruption quite poignantly. We see how the media has become the fourth branch of government--often setting the political agenda by creating the very stories they report on (i.e. CNN poll question: is Obama a Muslim?/results covered on a 24 hr. loop). And many of those news-created stories perpetuate the Right's agenda of delaying any legislation designed to benefit the middle and working classes. In fact, an eye-popping inditement of this 21st Century media is on full display in the book: 71 Days: The Media Assault On Obama. Huffington gives us a gift by unveiling an America that is drowning in propaganda, tabloid-news-programming, racism, capitalistic greed, and an ever-growing imperialistic philosophy regarding our role in the world. It's an America whose politicians are destroying the middle class at warp speed. The middle and working classes cannot afford for Sarah Palin to set the political agenda. But all she has to do is tweet something irrelevant and the media will run with it--ignoring any meaningful economic legislation that needs attention. Who suffers as a result? We do.
55 of 65 people found the following review helpful
4.0 out of 5 stars Good -- but Misses the Importance of Technology and Globalization Sep 9 2010
By Robert Stryzinski - Published on Amazon.com
Format:Hardcover
Adrianna Huffington does a good job of describing the ongoing destruction of the middle class. I found the real-life stories of individuals and families that have been impacted particularly compelling. The degree of income concentration in the United States is really quite shocking.

My major complaint is that Huffington fails to indentify advancing technology as a primary driving force behind income inequality. This is an important point because if technology (along with globalization) is a major culprit, then it tells us something about the future: Things are very likely to get even worse. We're sure to see more advanced automation and also new technology that makes it even easier for companies to offshore work. Even the upper middle class is not going to escape this tend. The basic reality is that technology and globalization are making our labor worth much less and giving workers less and less bargaining power.

For a great overview of this issue--and a focus on the future rather than the past--I'd strongly recommend this book: The Lights in the Tunnel: Automation, Accelerating Technology and the Economy of the Future. It shows how advancing technology will very likely lead to structural uemployment and even more extreme concentration of income into the hands of the few. As someone who works in the technology field, I'm convinced that the trends described in this book are already well underway and explain, at least in part, the situation that Huffington describes. As "The Lights in the Tunnel" points out, this problem may ultimately be so big that it defies conventional solutions. I highly recommend that anyone concerned about the plight of middle class Americans check out this book and give these issues some serious thought.
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