Do you think the United States is at the position of either international overstretch or social overstretch?
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I do not think that we need to make a choice between America's involvement overseas and its commitment to domestic issues. In many ways America is overextended both internationally and domestically. We are involved in Iraq and Afghanistan. We also recently deployed some marines to the Pacific to protect our interests there in view of China's growing influence. There is also talk of involvement in Iran. Just in light of points, we can say that we are overextended to a great degree. We cannot be the world's police force.
We also have many domestic issues. The GDP is low. The banks are still in disarray. Entitlements are great and the government cannot afford to pay these out. For example, most federal employees have not gotten a raise in two years. This is essentially taking a pay cut in view of inflation. And there seems to be very little that will drive the economy. Finally, politicians are in a stalemate as the nation is increasingly polarized. A few months ago, we almost could not pay our federal employees because of the debt ceiling. Also consider the fact that Moody's downgraded America.
In a word, we are overstretched in every way.
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