By Darin Lawson Hosking in Dollar — Feb 2, 2025

The Decline of the US Empire

American Empire in Decline A Neoliberal Analysis and Proposed Solution

0:00

/820

A Blunt and Factual Analysis

Introduction

The United States is undergoing a period of relative decline, mirroring the trajectory of past empires. This decline is evident in military failures, economic stagnation, geopolitical realignments, and the increasing financialization of the U.S. economy at the expense of productive industry. The root cause of this decline is the neoliberal economic model that has governed U.S. policy since the late 20th century. If the nation continues down this path, the consequences will be severe, both domestically and internationally.

Key Indicators of Decline

1. Military Failures and Overextension

The United States has lost or failed to achieve decisive victories in Vietnam, Afghanistan, and Iraq.
The ongoing war in Ukraine has drained U.S. resources, while Russia and China remain resilient.
The U.S. military-industrial complex prioritizes expensive, ineffective projects over strategic innovation.
Nuclear deterrence is no longer an effective tool, as the U.S. cannot use it without ensuring its own destruction.

Expected Result: The U.S. will continue wasting trillions on unwinnable conflicts while failing to maintain real deterrence against rising powers.

2. The Rise of BRICS and Global Economic Shifts

BRICS now accounts for over 36% of global GDP (PPP), surpassing the 28% held by the G7.
The Global South is shifting trade and finance away from U.S. control.
De-dollarization is accelerating, with central banks reducing dollar reserves.
U.S. sanctions and tariffs have backfired, strengthening China, Russia, and alternative markets.

Expected Result: The U.S. dollar will continue losing its status as the world’s reserve currency, leading to inflation, economic contraction, and reduced global influence.

3. Economic Hollowing and Financialization

The U.S. has shifted from a productive industrial economy to a financialized one, prioritizing stock buybacks, speculative investments, and debt over manufacturing.
Corporate monopolies dominate industries, crushing competition and innovation.
Wages have stagnated while inflation has reduced purchasing power.
The U.S. national debt exceeds $34 trillion, with no credible plan to address it.

Expected Result: Economic inequality will deepen, social unrest will grow, and economic crises will become more frequent as financial speculation replaces real productivity.

4. Trade Wars and the Myth of U.S. Competitiveness

China’s BYD has surpassed Tesla as the world’s largest EV manufacturer, but U.S. tariffs prevent American consumers from accessing superior products.
U.S. industries rely on tariffs and subsidies to survive rather than genuine competitiveness.
Global trade is shifting to multipolar agreements that exclude the United States.

Expected Result: American companies will continue to lose ground in global markets, while protectionist policies drive up costs for consumers and businesses.

5. Public Austerity and Corporate Welfare

Government spending prioritizes military expansion and corporate bailouts over public investment.
Infrastructure, healthcare, and education remain underfunded while the wealthiest corporations enjoy record profits.
The average American household is more indebted than ever, with credit card interest rates exceeding 20%.

Expected Result: A declining middle class, increased poverty, and reduced social mobility, leading to greater instability and discontent.

Root Causes: Neoliberalism and the Corruption of U.S. Policy

Privatization and Deregulation:
- Public services and utilities have been gutted to benefit private investors.
- Essential industries (healthcare, energy, education) are monopolized by profit-driven entities.
Corporate Capture of Government:
- Politicians serve corporate interests through lobbying and campaign financing.
- Policies that favor financial elites over the working class remain unchanged, regardless of administration.
Perpetual War and Military Keynesianism:
- War is used as an economic stimulus, funneling taxpayer dollars to defense contractors rather than domestic needs.
Financialization Over Production:
- The U.S. economy prioritizes stock markets and asset bubbles rather than industrial and technological leadership.

How the Moral Algorithm Accountability Act (MAAA) Can Reverse Neoliberal Policies and Provide a Solution

The Moral Algorithm Accountability Act (MAAA) fundamentally challenges the neoliberal framework by enforcing a systematic review of all legislation based on its impact on the common good rather than corporate or elite interests. Below is a detailed breakdown of how it could reverse neoliberalism and potentially provide a lasting solution.

1. Replacing Neoliberalism’s Core Tenets

Neoliberalism thrives on privatization, deregulation, corporate influence in governance, and market supremacy over public well-being. The MAAA dismantles this model by:

Establishing a Moral Algorithm Review Board (MARB) that prevents laws from favoring corporate profit over public good.
Retroactively reviewing all existing laws and striking down those that do not meet the standard of protecting, ensuring safety, and promoting the prosperity of the people.
Prohibiting any legislative action that bypasses these principles.

Expected Result: The legislative structure itself would shift away from neoliberal priorities, preventing economic policies that benefit only elites at the expense of the broader population.

2. Eliminating the Corporate-Lobbying Power Structure

Mandating AI-assisted audits of legislation to detect corporate bias.
Automatically disqualifying laws that favor private profit over public benefit.
Criminalizing any attempt to bypass MARB review, with legal consequences for politicians or corporations attempting to manipulate the system.

3. Redefining Economic Priorities: From Speculation to Production

Evaluating economic policies based on tangible benefits to employment, wages, and national stability.
Eliminating tax loopholes and subsidies for industries that do not directly contribute to public well-being.
Restoring industrial policies that promote self-sufficiency rather than outsourcing and monopolization.

4. Breaking the Endless War Economy

Requiring justification for war-related spending based on public protection, not corporate profit.
Eliminating loopholes that allow defense contractors to manipulate policy.
Ending wars of economic convenience (e.g., Iraq, Afghanistan, Ukraine) by restricting military spending that does not directly protect U.S. citizens.

5. Enforcing Economic and Political Accountability

Revoking laws and executive orders that fail the public interest test.
Penalizing politicians who introduce harmful legislation.
Prohibiting future attempts to reintroduce failed neoliberal policies.

Expanded Expected Outcomes of MAAA Implementation

Increased Wages & Stronger Unions: Workers regain collective bargaining power, reducing income inequality.
Sustainable Industrial Growth: Manufacturing and technological industries revive, reducing reliance on foreign production.
Reduced Military Expenditures: A shift away from perpetual war lowers national debt and redirects funds to infrastructure.
Greater Political Accountability: Politicians must legislate for the public rather than corporate donors.
Economic Stability & Resilience: Policies focus on long-term stability rather than short-term stock market gains.

Final Outcome: The End of Neoliberalism

If implemented, the MAAA would dismantle the very foundation of neoliberal economic policy and reorient U.S. governance toward serving the common good.