By Steve Burns
The Roman Empire and the United States are history’s most influential powers. Though separated by time and geography, there are some striking parallels between their rise, development, and potential decline. In this blog post, we’ll dive into the similarities and differences between these two mighty civilizations, focusing on the past 40 years of the United States.
Political Instability And Corruption
The Roman Empire
The Roman Empire faced significant political instability, especially during its later years. The empire saw a rapid turnover of emperors, many of whom were corrupt, ineffective, or simply not up to ruling such a vast and diverse realm. Corruption was widespread, with officials often using their positions for personal gain rather than the public good.
The United States
The United States, too, has seen a decline in the stability and effectiveness of its political system. Polarization has grown over the past four decades, and trust in institutions has waned. Corruption, though not as pervasive as in Rome, remains a concern in various government sectors.
Economic Inequality And Struggles
The Roman Empire
In Rome, wealth was heavily concentrated in the hands of a few elites. Most of the population lived in poverty, leading to social unrest and resentment. This inequality was exacerbated by Rome’s tax system, which disproportionately burdened the lower classes.
The United States
Income inequality in the United States has been rising for the past four decades, with the rich getting richer and the poor getting poorer. This has led to social tensions and concerns about the long-term stability of the nation’s economic system.
Monetary Policy And Inflation
The Roman Empire
The Roman Empire struggled with inflation, particularly in its later years. This was mainly due to the empire’s debasement of its currency—reducing the precious metal content of coins to fund wars or other expenses. This, in turn, led to a loss of confidence in the currency and economic troubles.
The decline in Roman denarius’s purchasing power resulted from several factors, including inflation, currency debasement, and economic instability. As the Roman Empire expanded, it faced increasing expenses related to its military, administration, and infrastructure. To fund these expenses, the Roman government often resorted to debasing the denarius, which involved reducing the coin’s silver content.
Initially, the denarius was made of nearly pure silver, but over time, the percentage of silver in the coin was progressively reduced. By mixing silver with base metals like copper, the Roman government could mint more silver coins with the same amount, effectively increasing the money supply. However, this currency debasement led to inflation, as the coins’ actual value was less than their face value. The increased money supply diminished the purchasing power of the denarius.
Inflation was further exacerbated by other economic factors, such as wage and price controls, which were implemented to address rising costs but often had the unintended effect of creating shortages and black markets. The Roman government also struggled to collect taxes effectively, which led to further financial strain and an increasing reliance on debasing the currency.
As the denarius became less valuable, people began to lose confidence in the currency. This led to a general decline in trade and economic activity. People started hoarding more valuable commodities like gold and silver bullion, and merchants became reluctant to accept the debased currency. As the purchasing power of the denarius continued to decline, it contributed to the overall economic instability and eventual decline of the Roman Empire.
The United States
The United States has experienced the same currency debasement as Rome. The passage of the Gold Reserve Act of 1934 signified that the American people could no longer hold gold except for jewelry and collectors’ coins.
Silver certificates were introduced in the United States as a form of currency in 1878. These certificates represented a specific amount of silver bullion and could be redeemed for physical silver. The use of silver certificates as the currency continued until the 1960s. The issuance of new silver certificates ceased in 1964, and they were discontinued as a form of currency after the Coinage Act of 1965, which removed the requirement for U.S. currency to be backed by precious metals. Silver certificates that had already been issued remained legal tender and could be used as currency. Also, coinage stopped being made from 90% silver in 1964 and was phased out by 1969, with dollars, half dollars, and dimes made from nickel-plated copper. This is the debasement of coinage like the Roman Denarius.
The United States stopped allowing other central banks to convert the U.S. dollar to gold on August 15, 1971. This was when President Richard Nixon announced the “Nixon Shock,” which effectively ended the Bretton Woods system of fixed exchange rates and took the U.S. off the gold standard. This meant foreign governments could no longer exchange U.S. dollars for gold. The U.S. dollar became a fiat currency, and inflation increased in the 1970s.
The limitation on gold ownership in the United States was repealed after President Gerald Ford signed a bill legalizing private ownership of gold coins, bars, and certificates by an Act of Congress, codified in Pub. L. 93–373, which went into effect December 31, 1974.
Inflation has persisted, especially after the 2008 financial crisis and the recent pandemic. The Federal Reserve’s monetary policies, which have focused on low-interest rates and quantitative easing, have stoked inflation and potential long-term economic instability.
Military Overreach And Resource Allocation
The Roman Empire
Rome’s military was stretched thin across its vast empire. Constant warfare and the need to defend its borders drained resources that could have been used for other purposes, such as infrastructure or social programs. Eventually, Rome’s overextended military contributed to its decline.
The United States
The United States has maintained a significant global military presence since World War II. However, in recent decades, critics argue that the nation’s military commitments have become overextended and costly, diverting resources away from critical domestic needs.
Demographic Shifts And Immigration
The Roman Empire
The Roman Empire experienced a population decline and demographic changes due to migration, disease, and other factors. These shifts impacted Rome’s economy and social fabric as new populations and cultures mingled with the traditional Roman way of life.
The United States
Demographic changes in the United States over the past 40 years have included an aging population, slowing birth rates, and increased immigration. These changes have led to debates over immigration policy, cultural assimilation, and the future of American identity.
Infrastructure Challenges
The Roman Empire
Maintaining Rome’s vast infrastructure, including roads, aqueducts, and public buildings, became increasingly difficult as resources were stretched thin. The empire struggled to keep up with the demands of its aging infrastructure, ultimately contributing to its decline.
The United States
The United States faces similar challenges with its aging infrastructure. Bridges, roads, and public transportation systems have declined for decades, and the nation has struggled to allocate the necessary resources for their maintenance and improvement. This has led to concerns about crumbling infrastructure’s long-term economic and social impact.
The Decline In Civic Values
The Roman Empire
Rome experienced a decline in traditional civic values and social cohesion as its empire expanded. This decline was further exacerbated by political corruption, economic struggles, and the influx of new cultural influences.
The United States
In recent decades, concerns have been raised about the erosion of shared values and social fragmentation in the United States. Political polarization, declining civic engagement, and social media influence have contributed to a growing sense of disunity and mistrust among Americans.
Climate Change And Resource Depletion
The Roman Empire
Rome faced challenges with resource depletion and environmental issues such as soil erosion, deforestation, and desertification. These factors contributed to food shortages, economic strain, and social unrest.
The United States
The United States is grappling with mining, pollution, and resource depletion impacts. Flooding, extreme weather events, and biodiversity loss threaten the nation’s economy, environment, and public health.
Conclusion
While there are many parallels between the Roman Empire and the United States, it’s essential to remember that the two civilizations are fundamentally different, and the U.S. faces unique challenges. However, by examining the shared struggles and lessons from Rome’s decline, politicians can better understand the potential pitfalls facing the United States and work to address them proactively. In doing so, they can help ensure the continued stability and prosperity of the nation for future generations.
“Those that fail to learn from history are doomed to repeat it.” – Winston Churchill.
Source: News Trader U
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