10 ways America has come to resemble a banana republic
What will it take to reverse this trend?
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In the post-New Deal America of the 1950s and ’60s, the idea of the United States becoming a banana republic would have seemed absurd to most Americans. Problems and all, the U.S. had a lot going for it: a robust middle-class, an abundance of jobs that paid a living wage, a strong manufacturing base, a heavily unionized work force, and upward mobility for both white-collar workers with college degrees and blue-collar workers who attended trade school. To a large degree, the nation worked well for cardiologists, accountants, attorneys and computer programmers as well as electricians, machinists, plumbers and construction workers.
In contrast, developing countries that were considered banana republics—the Dominican Republic under the brutal Rafael Trujillo regime, Nicaragua under the Somoza dynasty—lacked upward mobility for most of the population and were plagued by blatant income equality, a corrupt alliance of government and corporate interests, rampant human rights abuses, police corruption and extensive use of torture on political dissidents.
Saying that the U.S. had a robust middle-class in the 1950s and ’60s is not to say it was devoid of poverty, which was one of the things Dr. Martin Luther King, Jr. was vehemently outspoken about. King realized that the economic gains of the post-World War II era need to be expanded to those who were still on the outside of the American Dream looking in. But 50 years after King’s “I Have a Dream” speech of 1963, poverty has become much more widespread in the U.S.—and the country has seriously declined not only economically, but also in terms of civil liberties and constitutional rights.
Here are 10 ways in which the United States has gone from bad to worse, and is looking more and more like a banana republic in 2013.
1. Rising Income Inequality and Shrinking Middle Class
In a stereotypical banana republic, income inequality is dramatic: one finds an ultra-rich minority, a poor majority, a small or nonexistent middle class, and a lack of upward mobility for most of the population. And according to a recent study on income inequality conducted by four researchers (Emmanuel Saez, Facundo Alvaredo, Thomas Piketty and Anthony B. Atkinson), the U.S. is clearly moving in that direction in 2013.
Their report asserted that the U.S. now has the highest income inequality and lowest upward mobility of any country in the developed world. They found that while the picture grows increasingly bleak for American’s embattled middle-class, “the share of total annual income received by the top 1% has more than doubled from 9% in 1976 to 20% in 2011.” And earlier this year, a report by the Organization for Economic Co-operation and Development OECD also found that the U.S. now leads the developed industrialized world in income inequality.
2. Unchecked Police Corruption and an Ever-Expanding Police State
Journalist Chris Hedges made an excellent point when he said that brutality committed on the outer reaches of empire eventually migrates back to the heart of empire. Hedges asserted that with the increased militarization of American police, drug raids in the U.S. are now looking like military actions taken by American soldiers in Fallujah, Iraq. And, to be sure, there have been numerous examples of militarized narcotics officers killing innocent people in botched drug raids or sting operations gone wrong.
To make matters worse, narcotics officers who kill innocent people rarely face either civil or criminal prosecution; they essentially operate with impunity. And in addition to the abuses of the war on drugs, the U.S. government has far-reaching powers it did not have prior to 9/11. Between the drug war, the Patriot Act, the National Defense Authorization Act, and warrantless wiretapping, the United States is employing the sorts of tactics that are common in dictatorships.
3. Torture
During the Cold War, the U.S. supported many fascist regimes and banana republics that engaged in torture. But it didn’t openly flaunt such tactics itself. That changed after 9/11. Post-9/11, the U.S. crossed a dangerous line when the CIA used waterboarding on political detainees with the blessing of the George W. Bush administration. Waterboarding and other forms of torture are not only bad interrogation methods that do nothing to decrease or prevent terrorism, they are a blatant violation of the rules of the Geneva Convention. As Amnesty International observed, “In the years since 9/11, the U.S. government has repeatedly violated both international and domestic prohibitions on torture and other cruel, inhuman or degrading treatment in the name of fighting terrorism.”
4. Highest Incarceration Rate in the World
According to the London-based International Center for Prison Studies, the U.S. has 716 prisoners per 100,000 residents compared to 114 per 100,000 in Canada, 79 per 100,000 in Germany, 106 per 100,000 in Italy, 82 per 100,000 in the Netherlands or 67 per 100,000 in Sweden. Even Saudi Arabia, which has an incarceration rate of 162 per 100,000, doesn’t imprison nearly as many of its residents as the United States. One of the main reasons the U.S. has such a high incarceration rate is its failed war on drugs, which has emphasized draconian sentences for nonviolent offenses.
The prison industrial complex has become quite a racket. From prison labor to construction companies to companies specializing in surveillance technology, imprisoning people is big business in the United States—and the sizable prison lobby has a major stake in keeping draconian drug laws on the books. Further, the drug war has included harsh asset forfeiture laws that, in essence, place the burden of proof not on the courts, but on people whose assets have been seized.
5. Corrupt Alliance of Big Business and Big Government
Trends forecaster Gerald Celente has asserted that the U.S. has become a “fascist banana republic” and now lives up to Italian dictator Benito Mussolini’s definition of fascism: the merger of state and corporate power. Celente, a frequent guest on the cable news network RT, has repeatedly said that systemic corruption in the banking sector has not decreased since the financial crash of September 2008 and the bailouts that came after it, it has gotten worse, and too-big-to-fail banks now operate with impunity.
That union of corporate and state power fits Mussolini’s definition of fascism, which was followed by a long list of dictators in banana republics. In a democratic republic, banks and corporations are not above the law; in a banana republic, they are—and with the legislation and reforms of Roosevelt’s New Deal (which did a lot to prevent banks and corporations from enjoying unchecked power) having been undermined considerably (most notably, by the 1999 repeal of the Glass-Steagall Act of 1933), the U.S. is looking more and more like a banana republic.

