Exodus Back to the Land!
Understanding the U.S.A.'s current economic crisis and the ultimate solution - are you ready?
By Niyi Shomade (special for Organized C.O.U.P.)
The natural migration of people moving from the rural areas or farm land into cities with tall buildings is not just an American trend but one occurring worldwide. In the underdeveloped parts of the world (most of which are located in the global south), most people still reside in rural areas. However, the glamorized attraction of urban living has caused rural populations to migrate to cities with hopes of employment opportunities not available in their rural societies. As Africans in America moved from the share-cropping plantation to the office, it seems they also went from faux land-ownership to absolute dependency. Moving from the farm land to look for jobs in a "developing" economy also meant giving up certain human rights that are more transparent today. Trade agreements such as the WTO (World Trade Organization), NAFTA (North American Free Trade Agreement) and AGOA (African Growth Opportunity Act), have resulted in millions of jobs shifting overseas which have allowed US corporations access to slave labor wages. The loss of jobs which accelerates reduction in export revenue is increasing our budget deficit and trade deficit (commonly referred to as twin deficits). The deficit spending (spending more than is collected in taxes) is increasing debt levels, interest rates, and devaluing the dollar. This trend is not sustainable and will eventually lead to an economic collapse. As more corporations merge and consolidate, fewer hands are in control of our food supply, clothing, and shelter which will likely lead to less access to basic needs for survival. At this inevitable condition, the only way to purge the suffering will be for Africans in Americans to go back to the principles of self reliance and self determination in their communities. This will mean going back to farming the land and relying on oneself for shelter and clothing. Is America ready for an exodus back to the land?
When solutions are proposed in mainstream media about how to reduce the budget and trade deficits, most propositions include either job creation and/or reducing spending. However, given the current administration, these 'solutions' are undoubtedly unrealistic. According to the Economic Policy Institute, about 880,000 high wage manufacturing jobs were lost in the first 9 years (1993-2002) of the passing of NAFTA by former President Bill Clinton. Trade agreements such as NAFTA are providing tax incentives for US corporations to relocate abroad to low-wage areas. As jobs are lost, less tax revenue is generated by the government to cover increased spending. Additionally, as more US corporations are relocating abroad, few are paying taxes, further reducing revenue generated from taxes. According to the Government Accountability Office, 61% of corporations operating in the US and 71% of foreign-owned corporations paid no taxes between 1996 and 2000. As government spending exceeds revenue generated nationally, a budget deficit is created. In fiscal 2004, the budget deficit not including borrowing from social security and Medicare ran approximately $478 billion. Additionally, as goods shipped to the US in the form of imports exceeds goods sold outside the US in the form of exports, a trade deficit results. In fiscal year 2004, the trade deficit ran above $600 billion. The trade deficit must be financed by foreign nations willing to hold US currency. US workers, becoming more subdued, are paying for the budget and trade deficits in the form of taxes.
As the twin deficits continue to increase, more borrowing is needed to finance the excess spending. According to the Institute for International Economics, America is borrowing $5 billion every working day to finance its budget and trade deficits. For fiscal year 2005 (which began in October 2004), total federal US debt is projected to be $8.1 trillion or 67% of GDP (Gross Domestic Product). The debts are currently manageable because of low interest rates and a high GDP. As more money is borrowed to finance debts, investors will require higher interest rates and as more jobs are relocated abroad, the GDP will be reduced. The more likely it appears that the US will be unable to pay back its loans, the less access the US will have to borrowed funds. The US government recently defaulted on 40% of its trillion dollar foreign debt which was briefly mentioned in the Economist. The US federal debt is costing tax payers approximately $300 billion a year in interest. In the 12 years of the Reagan/Bush administration, the US went from being the world's largest creditor nation to the world's largest debtor. Additionally, the Clinton years of "new economy" were limited to computers and information technology which proved to be a sham at the bust of the dot-coms. As a result of the US living beyond its means, it will likely digress from the current recession to a depression.
In addition to borrowed funds and increased taxes, the excess printing of the dollar is now required to compensate for our government's overspending. This excess printing, along with fiscal irresponsibility, has contributed to the current downward spiral of the dollar to current 9 year lows. CNN Money is advising investors on how to profit from a weak dollar. The CNN article mentions that the dollar will likely continue its plunge so investors might as well cash in by investing in other currencies and derivatives. The dollar has hit record lows against the Euro, yen and other currencies. As a result, it is losing its position as the most internationally traded currency to the point that foreign countries are considering reducing their dollar reserves. According to The Wall Street Journal, the Chinese are lining up at their banks to trade dollars for their own currency (the Yuan). Cuba recently switched over from dollar reserves to Euros and it seems others might be following suit. As OPEC and other establishments consider trading oil in Euros, the dollar will decline further. Circumstances will likely be worse than the great depression of the 20's. Although parallels are easily drawn from the 20's, for example when the US government overspent itself in WWI, the stock market was overvalued, and debt levels were not manageable. The current situation is much worse due to a dwindling tax base and an outstretched military. For the first time publicly, chairman of the Federal Reserve, Alan Greenspan, is sounding concerned about the twin deficits even though he approved of the Reagan/Bush/Clinton polices throughout the 80's and the 90's. In a recent visit to Germany, Alan Greenspan spoke of the detrimental effects of the twin deficits to the US and world economies.
Most Americans today do not know where their food and water supply come from much less understand farming and water irrigation. Many would not dispute that most of us today understand the internet better than the food cycle. We are completely dependent on dwindling US corporations that own large scale farms for our food supply. For example, Africans in America that once farmed the land and built the infrastructure are unable to do either today thanks to a decaying education system and gentrification policies that limit access to resources. During segregation, blacks were forced to be dependent on themselves and the community because the overt racist system of Uncle Sam was not providing for their basic needs. Today, farmers of African decent in the south are becoming more marginalized due to the racist policy of reduced access to loans by banking institutions. Meanwhile, large scale farms are receiving huge tax subsidies and their corporate counterparts are escalating deforestation and global warming. The black farmers in the South are forced to seek other dependent sources to maintain their livelihood. The war on terrorism seems to find new enemies where fossil fuel resources are vast and there is not a US puppet. Additionally, the war in Iraq and Afghanistan and the over 700 foreign US military bases all over the world will continue to drain human and monetary resources. Americans will be forced to reconsider their dependency on the same US corporations that are exploiting them.
The solutions proposed of increasing jobs and reducing spending do not seem plausible and our plunging dollar may no longer allow us the thoughtless luxury of purchasing excess goods from the international market in the near future. US corporations that are enjoying slave labor wages abroad will not have a change of heart and relocate to America to provide high wage jobs once again. As it becomes increasingly apparent that the Bush administration (plus Democrats and Republicans in Congress) will lead us into an economic depression, what should we be doing to prepare? Going back to the land will require a radical and vibrant education system that incorporates a formal education system with informal labor intensive hands-on skill set. America already has examples in the Amish community and other groups of people such as the African Hebrew Israelites that are practicing sustainable community living through housing and food cooperatives. The solution of migrating back to plowing the land and self sufficiency will likely be forced by an economic crisis. An exodus back to the land is inevitable.
"Land is the basis of all independence. Land is the basis of freedom, justice, and equality. We must go back to the land we once owned, dug, plowed, sowed, reaped, and multiplied."
- Malcolm X
Niyi Shomade is the finance officer for the Ralph Nader Presidential campaign. He was born and raised in Lagos Nigeria and has lived in the United States for 14 years. He sits on the local DC Board of The American Service Committee. Contact Niyi Shomade by clicking: niyishomade@aol.com, organizedcoup@voxunion.com on economic exodus to the land article.
"In the abundance of water, the fool is thirsty!" - Bob Marley
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