It is hard to ignore the growing alarm being sounded by experts and commentators alike: American decline is a real and present danger. The US has long been seen as one of the pillars of global stability and order – a strong, prosperous and generally successful model of liberal democracy and the ‘American way of life’. But in recent years, the country has experienced a series of strategic and economic setbacks, with domestic dysfunction increasingly seen as a major factor in this worrying trend. How did such a major world power come to this point? In this article, we look at what’s behind the American decline and explore some of the most pressing domestic issues driving it.

Key Causes of American Decline

The damage being done to the American economy and political system is vast, multi-faceted, and complex, with a range of different causes. However, several key themes can be discerned at the heart of the decline:

  1. Rising inequality – A vast and growing wealth and income gap has become an increasingly prominent factor in US decline. The top 1% of the population now control more than 42% of total wealth in the US, while the bottom 50% own just 1%. In terms of income, the top 20% now earn on average 14 times as much as the bottom 20%. This was also highlighted in the recent report from Oxfam, which found that the richest 26 billionaires in the US now have as much wealth as the bottom half of the population.

  2. Political dysfunction – The continual dysfunction of the US political system, in terms of both policy-making and general governance, is a major cause of American decline. Highly partisan gridlock, propelled by gerrymandering, has seen the passing of minimal significant legislation in recent years, while government inefficiency and bureaucracy have meant stagnation of social and economic reforms.

  3. Dysfunctional education system – As OECD PISA scores conclusively show, the US education system has been falling behind in comparison with other developed countries for decades. Poor investment in both qualifications and teachers has resulted in high dropout rates and unqualified teachers, while lack of incentives or deriving economic or social advantages from qualifications has undermined its overall quality and effectiveness.

  4. Decaying infrastructure – The US infrastructure system is crumbling, with huge investment lag meaning the country loses an estimated $3.9 trillion of economic output to 2030 without urgent action. Furthermore, crumbling roads and bridges, combined with a decaying railroad system and leaky water systems, are seeing both energy inefficiency and environmental damage.

  5. Health crisis – The US also has one of the most troubled healthcare systems in the developed world, which experienced a major crisis in 2020. Poor health policies, weak public health infrastructures, and lack of coordination between public and private sectors has seen spiraling costs, high levels of uninsured individuals, and inadequate coverage for millions of the most vulnerable.

Analysis of the Impact of Domestic Dysfunction On American Decline

The impact of the above issues has been acute and far-reaching. The deep socio-economic divisions caused by inequality have undermined trust in the political system, as well as causing significant issues in terms of access to health care, education and employment, leading to social unrest and disruption.

At the same time, political dysfunction has created a kind of ‘policy schism’ in the US, with both parties unable to agree on any major reforms and a stagnating economy. The resulting losses to GDP and economic output have been calamitous, further exacerbating income and wealth gaps, while the failing education system has hampered America’s ability to compete on a global level.

Infrastructure decay has also added to economic losses and environmental damage, while the health crisis has seen a dramatic rise in ill-health and deaths, again without any real solutions to the problems being put forward and agreed.

American decline is clearly a real and present danger, with significant domestic issues pushing it over the edge. Highlighting numerous socio-economic and political issues, from inequality to political dysfunction to decaying infrastructure and a failing health system, this article has demonstrated how domestic dysfunction has driven the country’s downward spiral and what implications this has for its future. Clearly, this is an urgent problem that needs addressing and the US leadership needs to enact real solutions if it is to act on what is an increasingly desperate situation.