As the economic realities change, so do the social and political realities. It is a natural process, which is imperative for the social-political-economic evolution. Human civilization has evolved, over the time, because of the gradual progress, which is influenced by countless watersheds. These watersheds not only provided direction to the civilization development, but also yielded new notions, which forced social alterations. The example is of Industrial Revolution, of 17th century, which was not just an economic revolution, but also had political-social ramifications.
In the recent years, we have witnessed fundamental modifications in classical political-economic models; the inherent contradictions, of Capitalism, facilitated its evolution and in case of authoritarian political-economic model (socialist economic models), substitution of the entire system, by more liberal-economic system.
US, which was once considered the emphatic supporter, of Capitalism, introduced such changes, which altered the system to the point, where it only remotely resembled the previous economic model. These modifications were not the consequence of industrial technological advancements or political progression, but rather they were the result of economic meltdown, because of Great Depression, which had badly jolted the capitalist realm.
Once again, economic challenges are yielding new political-economic percepts, which apparently contradicts with previous political-economic notions that prevailed only two or three decades ago. It is imperative to mention that most of the economic challenges are born from imprudent economic and trade policies, which have been influenced/tempered by large corporations that have enormous and evident political influence.
The statistics (unemployment data on the right) provide valuable information, regarding unemployment; however these statistics are not enough to understand economic challenges, of US, immediate and long-term. As per stats, the unemployment rate, in US, augmented dramatically, in the year 2008, but because of the expansionary monetary and fiscal policies, US is able to partially recover. However, according to recent evidence (economic data) it is plain that US economy has not fully recovered (current GDP growth rate is below average growth rate of 3.24%).
For any economy the two core objectives are high employment and economic growth. However, US economy is failing to realize these objectives dues to de-industrialization (flight of capital), which is constructing new political-economic perceptions and realities. In addition, rise in wages, in US, has stalled because corporations are threatening to leave US, for Mexico, China or Vietnam, as cost of production, in these countries, is extremely low.
Because of these discussed challenges, the political-economic perceptions, in US, are evolving, which would either give birth to new scenarios or would shape the existing realities. Already the establishment politicians, like Hillary Clinton, are forced to amend their positions on economic and trade policies. This signifies the change occurring, within US. However, it is to be seen that how much these perspectives have changed, because of economic contradictions and challenges. The rise of Bernie Sanders suggest, very strongly, that establishment economics and politics are becoming irrelevant and sooner or later, the system, structured and shaped by establishment political-economic strategies and policies, would implode. However, it is hard to forecast whether would it be a gradual collapse or sudden implosion?
