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

Arianna Huffington
3.8 out of 5 stars  See all reviews (63 customer reviews)

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Book Description

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are an endangered species and that the American Dream of a secure, comfortable standard of living has become as outdated as an Edsel with an eight-track player.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.

From the Hardcover edition.

Editorial Reviews Review

Arianna Huffington and Mary Matalin: Author One-to-One
In this Amazon exclusive, Arianna Huffington and Mary Matalin discuss issues raised in Arianna's new book Third World America: How Our Politicians Are Abandoning the Middle Class and Betraying the American Dream. Arianna Huffington is the cofounder and editor-in-chief of the Huffington Post, a nationally syndicated columnist, and the author of 13 books. Mary Matalin is the author of Letters to My Daughters and the editor-in-chief of Threshold Editions and worked in the White House for presidents Ronald Reagan, George H.W. Bush, and George W. Bush.

Mary MatalinMary: In August, thirty thousand Americans stormed government offices for a chance to apply for a few hundred Section 8 housing slots. That same month, a relentlessly "get'er done" kind of guy, Mort Zuckerman, penned an Wall Street Journal op ed entitled, "The End of American Optimism." All confidence indicators are scraping rock bottom, including the all-powerful political "right track/wrong track." No one in the "ruling class" dares utter the word malaise, but they all wear it like a wet, wool mantle. And now you, my eternally optimistic friend! You and I came to Our Nation's Capital at the same time--I like to joke when you were a conservative, I was a moderate! Whatever our politics, we have always both been optimists. So when you gave me a copy of your manuscript, I was surprised by the title, Third World America. Thank goodness I was reading your manuscript side-by-side with one of my current favorite new books by Matt Ridley, The Rational Optimist, whose ten-thousand-year view gives one space for easier breathing.

Arianna: I know "Third World America" is a jarring phrase, but I wrote this book as a warning, a way of saying that if we don’t change course--and quickly--that could very well be our future. Growing up in Greece, everyone knew someone who'd left to find a better life in America. That was the phrase everyone associated with America: "a better life." When I came to live here in 1980, I knew that there was no other place I'd rather live. And I still feel that way. But something went wrong--terribly wrong--and put our country on a very dangerous path that threatens to transform us into Third World America. Wherever I looked, and in so many of the stories we covered on The Huffington Post, I kept seeing all the ways the middle class was getting the short end of the stick. It was the way that Washington rushed to the rescue of Wall Street but forgot about Main Street. It was the daily drumbeat of depressing statistics: One in five Americans unemployed or underemployed. One in eight mortgages in default or foreclosure. One in eight Americans on food stamps. Upward mobility has always been at the center of the American dream--a promise that if you work hard and play by the rules, you'll do well and your children will have the chance to do even better. But now, that promise has been broken--and America's middle class is under assault. The American Dream is becoming a nightmare--one of our own making. But the book, at its core, is, in fact, optimistic. It's partly a critique of the many ways things are broken--but it's also a practical guide for how to fix them.

Mary: Not only did we come to Washington together, we came up with the same worldview. My people escaped from (then) Yugoslavia "for a better life." Croatians (Dalmatians) and the Greeks go back to antiquity, characterized by a smart, hard work ethic and sound, ahead-of-the-curve reasoning. It is not accidental we gravitated to this country, where our hopes and dreams could be realized by not just our effort, but through the opportunities available only in the unique American system, which I will get to in a minute. For the millions of Americans like us, your sad chronicling of the dream gone bad is almost unfathomable but for all Americans even more outrageous is the failure of "the system" to anticipate it--and worse--to have tools to alleviate it. In their seminal, bestselling opus, This Time Is Different, Drs. Reinhart and Rogoff replace hundreds of years of empirical data with decades of smart-guy theories to expose the fallacy and fantasy of economic theorists who think they are smarter than their predecessors. So what we are all in shock over was eminently knowable; worse, the perps who didn’t see it coming are the least hurt by the devastation they wreaked on the middle class.

Arianna HuffingtonArianna: That’s definitely a beyond left and right conclusion! What became clear while writing this book is that the decline of the middle class was no accident. It was the result of tricks and traps. Tricks in the ways we financed our homes. Traps in the ways credit card companies used hidden fees and fine print and skyrocketing interest rates to get their hands on our money, driving more and more people into debt. So, yes, the game is rigged. Our financial system has become a bad carnival game where the rich always get the grand prize and the average American walks away empty-handed. We've gone from an economy where we make things to an economy where we make things up: default credit swaps, derivatives, CDOs and the like have turned Wall Street into a casino. Actually, a casino is fairer: at least you know the odds going in. And for me, the answer to the question of how we got here has to start in Washington, where special interests run the show--and where lobbyists outnumber elected officials 26 to 1. Unfortunately, there are no lobbyists for the American Dream. Now, I know you played a lobbyist on HBO ... so I'm curious what your take on the role special interests now play in Washington. For me, this is one of those questions that is beyond the right vs. left framing the media loves to apply to every issue in Washington. I think both sides are under the influence of a small financial elite.

Evanovich: Hahaha! On the HBO series, K Street, I was terrible playing a lobbyist (overcoming my natural ideologue persona was impossible), but making a fool of oneself is a small price to be in the wake of Steven Soderbergh's genius (not to mention breathing the same air as George Clooney--who is beautiful on the inside, too). I used to think lobbyists provided an economy-of-scale representation for busy Americans, but when I learned how many hard working, highly productive and profitable industries connected to the oil business did NOT have lobbyists to protect them from the "arbitrary and capricious" moratorium in the aftermath of the BP spill, it was a sad, revelatory moment. These are men and women whose families had lived and prospered on the water for centuries; who turned fishing and shrimping vessels into bigger businesses, providing indispensable services and thousands of jobs in the process, all while preserving a one-of-a-kind American culture. I am still not anti-lobbyist (there are many good and necessary ones), but you and I surely agree on a couple of points: 1) there has to be a more accessible/successful way to petition the national government in a national crisis; 2) taking meetings with lobbyists at the coffee shop so they don't appear on the White House visitors' log is hardly transformational transparency; 3) as you note in Third World America, there is no transparency in the legislative process when the work is done, the cake is baked long before the floor debate begins. No transparency, no accountability. No accountability ends in tyranny.

Arianna: Exactly, the media like to pretend that something's at stake when a big bill is being debated in the House or Senate, but by then the game is often over. The real fight happens behind closed doors. And the lobbyists usually win. Let's talk financial regulation: while we may not agree on how the new rules will effect the economy moving forward, or on what the role of government should be when it comes to regulating the financial system, I think we might find some beyond left and right common ground on the role morality has to play in all this. For me, there will never be enough regulators or government regulations to make a difference if Wall Street doesn't tap back into the notion that businessmen have responsibilities above and beyond the bottom line. There is a reason Adam Smith's free-market gospel, The Wealth of Nations, was preceded by his Theory of Moral Sentiments. He understood that economic freedom could not flourish without a firm moral foundation. How do you see the balance between government regulation and a free market driven by more than the bottom line?

Mary: We agree on the shortcomings of the ridiculously heralded Financial Regulations bill ... most glaring for me: the omission of the toxic twins, Fannie and Freddie, the fertile crescent of the housing mess. I think we could also agree that financial instruments are a different free-market animal from goods and services, and therefore, institutionally subject to differing assumptions (excellently analyzed by Anatole Kaletsky in Capitalism 4.0). We also agree on regulatory capture being the provenance of both parties. But, most important, we agree--as does America--that all the rules, regulations, punishments, and penalties can never succeed in proffering prosperity for all as a sound moral foundation can and does and has. The philosophical departure of Adam Smith and David Hume from power to plenty as a governance organizing principle spoke to the natural law (or, if you will, God) imbuing each individual with the inalienable right to personal, economic, political, and moral liberty, inextricably intertwined, obviously. It took this country to truly apply--not just blather and revolt--those principles to everyman.

Arianna: Here's another thing I think we'll agree upon: the suffering we are seeing all across America is definitely bipartisan.

Mary: In his many eloquent works, Michael Novak notes, whatever its sharp and messy edges, no system has better served humanity than capitalism. It raises up the poor, it protects human rights, it is a necessary condition for democracy. It doesn't know right/left, red/blue. But it does rest absolutely on virtue. As we all know, our founders' overwhelming concern about staging a representative republic was "are we virtuous enough?" One of the silver linings of this tumultuous time is the astounding back-to-basics effort of millions of Americans: studying their own history; being shocked and awed by their own heritage; reassessing their own virtue of citizenship.

Arianna: When I was talking to and writing about the people whose stories I tell in the book, politics rarely came up. And while I think it's essential that we hold our leaders feet to the fire--and point fingers at those who are responsible for creating the policies that are killing the American Dream--I think that the way we are going to keep America from becoming a Third World country is by each of us getting more involved and reaching out to one another. We need to remember that democracy is not a spectator sport--and take action.

Mary: And this is where we always come together, girlfriend. "Decline" is a choice. An examination of conscience (in the religious or just citizenship way), a commitment to assuming proportionate responsibility to the rights we exalt, a demand for universal virtue must occur concomitant to action. Third World America offers some timely, interesting, and innovative prescriptives for action, even if a few come from left field! Your call to action is certain to get right, left, and center--who aren't already--in gear.

Arianna: In fact, writing this book ultimately did leave me feeling hopeful. And that's because I was again and again struck by the resilience, creativity, and acts of compassion that I discovered taking place all across America. That's why the last section of the book is filled with the specific steps we--as individuals, as families, and as a country--need to take to stop our free-fall. So often, our desire to take action gets derailed by our uncertainty over exactly what action to take, and how to best make a difference. I wanted to try to help bridge the gap between intention and involvement--and inspire each of us to do the things we need to do to make sure we never find ourselves living in Third World America.

From Booklist

*Starred Review* Could the U.S. be on the brink of becoming a Third World nation? Syndicated columnist Huffington argues that overspending on war at the expense of domestic issues and the alarming decline of the middle class are troubling signals that the U.S. is losing its economic, political, and social stability—a stability that has always been maintained by the middle class. She pinpoints the beginning of the decline to the Reagan era, with its denigration of a government safety net. But she is nonpartisan in assigning responsibility to George W. Bush and Bill Clinton for supporting monied interests over those of the middle class; she then takes aim at Obama for expending more money to bail out Wall Street than Main Street. She also points to loss of manufacturing jobs, outsourcing, and globalization, all with emphasis on corporate profits at the expense of workers. Although the U.S. has faced similarly fearful times during the late 1800s and the Great Depression, the middle class was not threatened, as it is today. She offers possible solutions for the decline, including creating jobs to rebuild national infrastructure, reforms in home and credit lending, and tighter restrictions on Wall Street. An engaging analysis of troubling economic and political trends. HIGH-DEMAND BACKSTORY: The Huffington Post founder is sure to get some media traction with her assertion that the American Dream is an outdated concept. --Vanessa Bush

Product Details

  • File Size: 1419 KB
  • Print Length: 290 pages
  • Page Numbers Source ISBN: 1616373326
  • Publisher: Broadway Books; Reprint edition (September 7, 2010)
  • Sold by: Random House LLC
  • Language: English
  • ASIN: B003B0W1RG
  • Text-to-Speech: Not enabled
  • X-Ray:
  • Word Wise: Enabled
  • Lending: Not Enabled
  • Amazon Best Sellers Rank: #110,645 Paid in Kindle Store (See Top 100 Paid in Kindle Store)
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Customer Reviews

3.8 out of 5 stars
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Most Helpful Customer Reviews
195 of 223 people found the following review helpful
5.0 out of 5 stars How to Thwart the Assassins of the American Dream September 7, 2010
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.
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106 of 127 people found the following review helpful
5.0 out of 5 stars Blood On Our Hands September 8, 2010
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.
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58 of 68 people found the following review helpful
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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Most Recent Customer Reviews
5.0 out of 5 stars We need to fight back and save America.
This will hopefully open your eyes. The middle class will soon be a thing of the past.
Published 2 months ago by John Kidd
1.0 out of 5 stars Wrong question...
This is the wrong issue in the wrong book by the wrong is not HOW we got here but WHY America is changing the way it is... Read more
Published 2 months ago by Lewis Tagliaferre
3.0 out of 5 stars Three Stars
Choice of stars says it all
Published 5 months ago by Jane Hughes
5.0 out of 5 stars An important read!
If you are interested in what is really happening in this nation without all of the ridiculous propaganda, then read this. A serious look at what the heck is really going on.
Published 9 months ago by Michael Graves
4.0 out of 5 stars Downhill fall is fast when you've lost your job!
Although Arianna Huffinton is often too liberal for me, I found the stories
about real people facing the loss of jobs compelling. Read more
Published 12 months ago by Bill Matthews
5.0 out of 5 stars Read this book
everyone needs to know 1. How were falling part. 2. Our infrastructure is 100 years behind the times. 3. Read more
Published 17 months ago by Valerie Lyn
5.0 out of 5 stars Summary of what has happened to Middle Class America
It is telling my story; everything that happened to me is represented in this wonderful book. It's a keeper, and I agree with Bill Maher, everyone should read this account of what... Read more
Published 17 months ago by Mary J Beverly
4.0 out of 5 stars Yes, America is in sad decline
This work aptly describes the decline of America's middle class. Growing up in the Midwest and seeing the downsizing of America's core manufacturing capability in automobiles,... Read more
Published 19 months ago by American Patriot
4.0 out of 5 stars Overview of America's problems
This was a good quick read. Huffington fails to get very detailed and deep thinking about the issues that face the country. Read more
Published 19 months ago by ryan owen
4.0 out of 5 stars Time to change
Well written. Not political not right or left. Has America best interests in mind. I especially appreciated the empathy chapter.
Published 20 months ago by KB
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More About the Author

Arianna Huffington is the chair, president, and editor-in-chief of the Huffington Post Media Group, a nationally syndicated columnist, and author of fourteen books. In May 2005, she launched The Huffington Post, a news and blog site that quickly became one of the most widely-read, linked to, and frequently-cited media brands on the Internet. In 2012, the site won a Pulitzer Prize for national reporting. In 2013, she was named to the Forbes Most Powerful Women list. In 2006, and again in 2011, she was named to the Time 100, Time Magazine's list of the world's 100 most influential people. Originally from Greece, she moved to England when she was 16 and graduated from Cambridge University with an M.A. in economics. At 21, she became president of the famed debating society, the Cambridge Union. She serves on several boards, including EL PAÍS, PRISA, the Center for Public Integrity, and the Committee to Protect Journalists.

Her 14th book, Thrive: The Third Metric to Redefining Success and Creating a Life of Well-Being, Wisdom, and Wonder will be published by Crown in March 2014.

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