Two Basic Problems Facing the USA Today, Research Paper Example

How can we provide an adequate healthcare system for the nation? 

The wellness and healthcare industries in the USA are a $trillion business, yet they are seen to have serious shortcomings in adequacy of service and support.  Despite this Mark Pauly an economist at the University of Pennsylvania stated ” the United States spends significantly more on health care per capita than do Europeans nations, the latter actually devote more real resources per capita.” (Reinhardt, 2009).  President Obama is now faced with making one of the most wide reaching changes in American history.  A transformation of the US health service to that of a social service for all people, giving all citizens a right and access to a basic medical service ” The US is the only developed country in the world that doesn’t have a socialized health system, and so the US is in a unique position to adapt a new system based on other countries’ systems.” (King, 2009).

It is fair to say that the cost of both supporting and maintaining the health system in the USA is astronomically high. ” the cost of health care in the US is outrageously high with the country spending $2.2 trillion in 2007 on health care, or $7,290 per capita which equates to 16 percent of GDP (gross domestic product)” (King, 2009).  In addition a large proportion of the nation cannot afford adequate medical coverage.  It is clear that the administration needs to boost investment in this area, streamline costs, improve efficiencies and create domestic wealth i.e. employment, thereby driving down poverty and making medical services within the reach of all US citizens.  One clear way forward might be spending less money on overseas wars like Iraq and Afghanistan  and diverting these monies into the revitalization of the domestic economy.  Even President Bush stated : If we don’t stop extending our troops all around the world in nation-building missions, then we’re going to have a serious problem.” — George W. Bush, Jan. 2001.  The Congressional Budget Office has estimated the cost of the Iraq war as being:

• Initial deployment of troops: $9 billion to $13 billion
• Conducting the war: $6 billion to $9 billion per month
• Returning forces to US: $5 billion to $7 billion
• Temporary occupation of Iraq: $1 billion to $4 billion per month source: (Langley, 2010).

How do we improve overall levels of employment in the nation

The national unemployment rate declined in June to around 9.5%; although the figures vary across the different States.  It is estimated that it will remain between 9.5-10% in 2010. There has been a reluctance by employers to hire new staff because of the recession and the uncertainty in both the economy and financial situation around the world.  Poverty and unemployment remain significant social problems for the USA today.

Certain segments of Industry have been punished harder than others, for example the US Motor industry. One of the amazing factors about unemployment is the close correlation to poverty and juvenile crime. ” In the year 2002, 1.7 million Americans slipped below the poverty line, bringing the total to 34.6 million. That’s an astonishing one in eight of the population. Over 13 million of them are children.” (Peterson, 2009).

Improvement in unemployment means dealing with poverty in the USA. It is all about wealth creation and building a prosperous society for all.  A lot of the major US Corporations have been struggling to compete in a fiercely competitive market place.  This has resulted to them placing jobs in other countries where labour is cheaper (outsourcing) in order to maintain profit margins ” Since wage rates outside the US (especially in South Asian countries) are lower, most of the US companies base their operations outside the US.” (Busymoms, 1997).

The US needs to be building its domestic markets and cease to reduce reliance upon cheap imports from the likes of China and South East Asia.  In turn changing consumer confidence to purchase US cars e.g. American cars like Ford, General Motors instead of Foreign brands.

Two basic problems facing the USA in the future

The ability for the US industry to compete in the global market place

The US has a huge trillion14+$ debt and a great deal is owed to China as a stakeholder. ” It’s expanding by about $1.4 billion a day — or nearly $1 million a minute.” (Jones, 2007).  The concept of globalization is such that it has caused all multi-national business to be interlinked and particularly with the Middle East, Asia, Europe and North America. Hence any shift in dynamics almost certainly creates a ripple effect in other countries.  The concept of supply and demand exaggerated on a larger scale.  As one of the world’s great economies the USA should compete on the world stage but it will need to be diligent ” It’s going to take prodigious powers of observation and deduction for U.S. manufacturing companies to win in the global economy” (Stevens, 2008).

Many have speculated that it is the National debt situation that will bring about the of the American superpower status and a re-alignment of the global powers with possibly the emergence of China taking the USA’s role on the global stage ” Our estimate is that the national debt will hit 350% of the GDP by 2050 under unchanged policy. Something has to change, because if you look at what’s going to happen to expenditures for entitlement programs after us baby boomers start to retire, at the current tax rates, it doesn’t work,” Wyss said.” (Jones, 2007).  I personally feel somewhat more optimistic about the picture but I believe it will certainly create change and may be the catalyst to bring greater ties between Canada and the USA.  There is a need to get the bi-lateral trading agreement stronger using the strengths of both countries i.e. the raw materials of Canada and the industrial might of the USA to work in greater harmony.  We are already seeing evidence of this working now but we need a much more integrated society in the future.

The ability to relinquish super power status in the world stage.

Empires come and go.  Britain had a great world empire, Japan dominated South East Asia for a while. The Netherlands, French, Spanish all had significant empires. In reality none has really matched that of the USA dominance ( perhaps with the exception of the British Empire). The point being is that these powers are extremely costly to maintain. Britain ruled the seas by having a great and powerful navy.  The US similarly has a might Navy and Air force supported by significant combat troops to deal with world trouble spots like Iraq and Afghanistan.  The cost of maintaining supremacy is to the detriment of the domestic economy like Healthcare, Poverty, Unemployment, Social care etc.

The West still view China with suspicion as a secretive nation with hidden agendas and the potential to pose a future threat to the West. At this point the technology lacks the sophistication of the West but that could change in the future. A strong US economy will therefore become essential if the western democracies are to maintain a balance in the world ” Unfortunately the secrecy of the regime, and the problems described above, do not provide a promising outlook. As the West engages China, it must be aware of the security threat China will potentially become in the future and ensure an appropriate security system is maintained to balance the power in the region” (Hynes, 1998). It is almost certain that the USA will remain in its’ superpower status in the next 30 years and indeed maybe even longer.  As the British discovered you need more than a single entity to remain a global power and diversity, modernity and technology remain at the centre of US innovation ” A genuine superpower does not merely have military and political influence, but also must be at the top of the economic, scientific, and cultural pyramids” (The futurist, 2006).

Works Cited

Busymoms. (1997). Reasons for unemployment in the US. Retrieved 7 23, 2010, from Busymoms: http://www.bizymoms.com/job-career/reasons-for-unemployment.html

Hynes, M. H. (1998). China: the Emerging Superpower . Retrieved 7 23, 2010, from War and Peace Security: http://www.fas.org/nuke/guide/china/doctrine/0046.htm

Jones, B. (2007, 12 3). U.S. debt: $30,000 per American. Retrieved 7 23, 2010, from USA today: http://www.usatoday.com/news/washington/2007-12-03-debt_N.htm

King, B. (2009, 8 5). Health care systems’ overview and why the US needs change. Retrieved 7 23, 2010, from Online Journal: http://onlinejournal.com/artman/publish/article_4984.shtml

Langley, R. (2010). Estimated Costs of an Iraq War . Retrieved 7 23, 2010, from About.com: http://usgovinfo.about.com/library/weekly/aairaqwarcost.htm

Peterson, J. (2009). Poverty and Unemployment in America. Retrieved 7 23, 2010, from Socialist Appeal: http://www.socialistappeal.org/usa/poverty_and_unemployment_in_amer.html

Reinhardt, U. E. (2009, 2 26). Way too much for way too little. Retrieved 7 23, 2010, from What Matters: http://whatmatters.mckinseydigital.com/health_care/way-too-much-for-way-too-little?pg=3

Stevens, M. (2008, 1 23). Can U.S. Manufacturing Companies Compete in the Global Economy? Yes! Retrieved 7 23, 2010, from allbusiness.com: http://www.allbusiness.com/company-activities-management/management/6450428-1.html

The futurist. (2006, 5 17). Why the US Will Still be the Only Superpower in 2030. Retrieved 7 23, 2010, from The futurist: http://futurist.typepad.com/my_weblog/2006/05/why_the_us_will.html