"Voluntary Poverty": The Best Defense In a Failing Economy?

Scroll to the end to get to the point:

*Disclaimer: all quotes, unless otherwise specified at the end are from http://en.wikipedia.org/wiki/Poverty*

Our nation may be facing another Great Depression. The facts that our national budget is in a deficit, that there is a national debt, and the fact that we "Bailed Out Wall Street" by only adding to that debt, do not indicate that America's illusion of prosperity will stand much longer.

Ever since we left the Gold Standard, "a monetary system in which a region's common media of exchange are paper notes that are normally freely convertible into pre-set, fixed quantities of gold," we have given the government the power to decide how prosperous or poor we Americans will be.
(http://en.wikipedia.org/wiki/Gold_standard)

Instead of the gold standard, we are subject to fiat currency.
"The terms fiat currency and fiat money relate to types of currency or money whose usefulness results not from any intrinsic value or guarantee that it can be converted into gold or another currency, but instead from a government's order (fiat) that it must be accepted as a means of payment.[1] [2]"
-http://en.wikipedia.org/wiki/Fiat_currency

So, our economy is only as strong as our government, and only as our government dictates it to be. If something occurs which causes the American government to fall, we will all be living in poverty, together. I want to note here too, that America is a young nation. Another truth from history is that every great nation falls at some point.

I was told in history class that "war stimulates the economy," and it was explained that WWII was largely responsible for pulling the nation out of the Great Depression because it created jobs, and need for new technology. Well, we have been at war for awhile now, and the economy does not seem to have responded so positively. Will it take another World War to put us on track?

Honestly, I personally feel that we as a nation are very close to finding ourselves impoverished.

Wikipedia cites known causes and factors of poverty, the first it mentions are environmental factors, which are not as much of a threat to the US as they are to developing countries, but nonetheless do occur here. These are: erosion, desertification and overgrazing, deforestation, climate and environmental change, geography, drought and water crisis. With national disasters on the rise in America, most recently hurricanes in the south, and fires on the west coast, these things could soon become predominate factors.

Some other economic factors however, abound in the USA. I will list the ones that I think are prevalent in America, as defined or explained by Wikipedia, and then I will comment or note on how I see this ocurring in the great US of A.

* "Unemployment:. Some countries' governments are believed to purposefully maintain a 2-10% unemployed populace to act as a 'replacement threat' to unskilled private sector workers, by way of maintaining an existing thriving service economy."
A clearer explanation of this:

"Open unemployment is generally associated with capitalist economies. In this view, unemployment is not an aberration of capitalism, indicating any sort of systemic malfunction. Rather, unemployment is a necessary structural feature of capitalism, intended to discipline the workforce. If unemployment is too low, workers make wage demands that either cuts into profits to an extent that jeopardize future investment, or are passed on to consumers, thus generating inflationary instability. David Schweickart suggests, "Capitalism cannot be a full-employment economy, except in the very short term. For unemployment is the "invisible hand" -- carrying a stick -- that keeps the workforce in line."
http://en.wikipedia.org/wiki/Unemployment

According to US Dept of Labor, the national unemployment rate as of September 2008 is 6.1%
http://www.bls.gov/cps/

*"Weakly entrenched formal systems of title to private property are seen by writers such as Hernando de Soto as a limit to economic growth and therefore a cause of poverty. [52]"

I would consider the current housing and foreclosure crises a "weakly entrenched formal system of title to private property." Wouldn't you?

*"Capital flight by which the wealthy in a society shift their assets to off-shore tax havens deprives nations of revenue needed to break the vicious cycle of poverty.*

Hmmmm. Like the oil companies, production companies, clothing companies?
Wanna create one? They'll help you. Check out: http://www.wsr-corporation.com/en/index.html

Also, for information on outsourcing labor, see:
http://news.thomasnet.com/IMT/archives/2007/04/offshore_outsourcing_labo...

* "Tax havens which tax their own citizens and companies but not those from other nations and refuse to disclose information necessary for foreign taxation. This enables large scale political corruption, tax evasion, and organized crime in the foreign nations."

Anyone can do it: http://www.escapeartist.com/taxhavens/taxhavens.htm

*"Failure by governments to provide essential infrastructure worsens poverty.[56][65]."

Does Hurricane Katrina ring a bell?

"The most severe loss of life and property damage occurred in New Orleans, Louisiana, which flooded as the levee system catastrophically failed, in many cases hours after the storm had moved inland.[4] The federal flood protection system in New Orleans failed at more than fifty places. Nearly every levee in metro New Orleans was breached as Hurricane Katrina passed just east of the city limits. Eventually 80% of the city became flooded and also large tracts of neighboring parishes, and the floodwaters lingered for weeks.[4] At least 1,836 people lost their lives in the actual hurricane and in the subsequent floods, making it the deadliest U.S. hurricane since the 1928 Okeechobee Hurricane. The storm is estimated to have been responsible for $81.2 billion (2005 U.S. dollars) in damage, making it the costliest tropical cyclone in U.S. history."
http://en.wikipedia.org/wiki/Hurricane_Katrina

*"High levels of corruption undermine efforts to make a sustainable impact on poverty. In Nigeria, for example, more than $400 billion was stolen from the treasury by Nigeria's leaders between 1960 and 1999."

I think some of the current events on Wall Street are significant examples here. For example, the people responsible for the financial activities of Freddie Mac and Fanny Mae.

"On December 18, 2006, U.S. regulators filed 101 civil charges against chief executive Franklin Raines; chief financial officer J. Timothy Howard; and the former controller Leanne G. Spencer. The three are accused of manipulating Fannie Mae earnings to maximize their bonuses. The lawsuit sought to recoup more than $115 million in bonus payments, collectively accrued by the trio from 1998–2004, and about $100 million in penalties for their involvement in the accounting scandal."
http://en.wikipedia.org/wiki/Fanny_mae

RE: Freddie Mac":
"In 2003, the company revealed that it had understated earnings by almost $5 billion, one of the largest corporate restatements in U.S. history. As a result, in November, it was fined $125 million--an amount called "peanuts" by Forbes.
A 200-page report issued by Office of Federal Housing Enterprise Oversight indicated that the company's records were manipulated to meet Wall Street earnings expectations. The firm signed a consent order promising to improve internal controls and corporate governance. [6]
On April 18, 2006 home loan giant Freddie Mac was fined $3.8 million, by far the largest amount ever assessed by the Federal Election Commission, as a result of illegal campaign contributions. Much of the illegal fund raising benefited members of the House Financial Services Committee, a panel whose decisions can affect Freddie Mac. Notably, Freddie Mac held more than 40 fundraisers for House Financial Services Chairman Michael Oxley, R-Ohio. [7]"
http://en.wikipedia.org/wiki/Freddy_Mac

*"Brain drain or human capital flight is a large emigration of individuals with technical skills or knowledge, normally due to conflict, lack of opportunity, political instability, or health risks. A brain drain is usually regarded as an economic cost, since emigrants usually take with them the fraction of value of their training sponsored by the government. It is a parallel of capital flight which refers to the same movement of financial capital. The term was coined by the Royal Society to describe the emigration of "scientists and technologists" to North America from post-war Europe.[1] The converse phenomenon is brain gain, which occurs when there is a large-scale immigration of technically qualified persons. Brain drain can be stopped by providing individuals who have expertise with career opportunities and giving them opportunities to prove their capabilities.[citation needed]"
http://en.wikipedia.org/wiki/Brain_drain

An article in reader's digest explores this phenomena happening in America.

" * Several of our key agencies for scientific research and development will face a retirement crisis within the next ten
years.
* Less than 6% of our high school seniors plan to pursue engineering degrees, down 36% from a decade ago.
* In 2000, 56% of China's undergraduate degrees were in the hard sciences; in the United States, the figure was 17%.
* China will likely produce six times the number of engineers next year than we will graduate, according to Mike
Gibbons of the American Society for Engineering Education. Japan, with half our population, has minted twice as
many in recent years."
http://www.rd.com/your-america-inspiring-people-and-stories/americas-mat...

As America tries to straighten out it's budget and deficits, this will very likely increase, as funds are likely to be cut from educational programs.

*"Matthew effect: the phenomenon, widely observed across advanced welfare states, that the middle classes tend to be the main beneficiaries of social benefits and services, even if these are primarily targeted at the poor."

"The "Matthew effect" denotes the phenomenon that "the rich get richer and the poor get poorer" and can be observed in various different contexts where "rich" and "poor" can take different meanings. The effect takes its name from a line spoken by "the Master" in Jesus' parable of the talents in the biblical Gospel of Matthew:

For unto every one that hath shall be given, and he shall have abundance: but from him that hath not shall be taken away even that which he hath.
—Matthew 25:29, King James Version."
http://en.wikipedia.org/wiki/Matthew_effect

I think this is painfully apparent., as well as the following, which I find to be self evident:

*" Discrimination of various kinds, such as age discrimination, stereotyping,[81] gender discrimination, racial discrimination, caste discrimination.[82]"

*"Individual beliefs, actions and choices.[83]"

*"Low income and wealth levels undermine the ability of governments to levy taxes for public service provision, adding to the 'vicious circle' connecting the causes and effects of poverty. Lack of essential infrastructure, poor education and health services, and poor sanitation contribute to the perpetuation of poverty.[95] Poor access to affordable public education can lead to low levels of literacy, further entrenching poverty. Weak public service provision and high levels of poverty can increase states' vulnerability to natural disasters and make states more vulnerable to shocks in the international economy, such as those associated with rising fuel prices, or declining commodity prices.[96][97]"

*"The capacity of the state is further undermined by the problem that people living in poverty may be more vulnerable to extremist political persuasion, and may feel less loyalty to a state unable to deliver basic services. For these reasons conditions of poverty may increase the risk of political violence, terrorism, war and genocide, and may make those living in poverty vulnerable to human trafficking, internal displacement and exile as refugees. Countries suffering widespread poverty may experience loss of population, particularly in high-skilled professions, through emigration, which may further undermine their ability to improve their situation."

And finally, the following may just be the answer. If every American volunteered poverty, we might just be able save ourselves, both as individuals, and as a nation.

"Simple living (or voluntary simplicity) is a lifestyle individuals choose to minimize the 'more-is-better' pursuit of wealth and consumption. Adherents may choose simple living for a variety of reasons, such as spirituality, health, increase in 'quality time' for family and friends, stress reduction, personal taste or frugality. Others cite socio-political goals aligned with the anti-consumerist movement, including conservation, social justice and sustainable development. According to Duane Elgin, "we can describe voluntary simplicity as a manner of living that is outwardly more simple and inwardly more rich, a way of being in which our most authentic and alive self is brought into direct and conscious contact with living."[1]
http://en.wikipedia.org/wiki/Voluntary_poverty

Tis the gift to be simple,
'tis the gift to be free,
'tis the gift to come down where you ought to be,
And when we find ourselves in the place just right,
It will be in the valley of love and delight.
—Shaker song.