With all due respect, I think you should've chosen a video that takes more time to expand upon and take into account some of the reasons behind America's supposed shortcomings.
Firstly, you're a comparatively young nation. During the time in which powerful nations/empires in Europe were pursuing enlightenment, both spiritually and materially, Americans who were heading west were pre-occupied with ensuring their own survival against the odds and elements. That was their sole prerogative. In my opinion, your high rates of incarceration are rooted in a system that was designed to deter lawlessness during an era - and across a landscape - where the law had little reach beyond large settlements. That system is still in place, for better or for worse. Though I have to admit that I'm still undecided upon the American judicial system and the scope of punishments at its disposal. One the one hand, many of the jail terms handed down are savage to the point of spitefulness. However, and where I'm personally concerned, they provide a deterrent compared to some of the ubsurdly lenient sentences handed down in European courts, that often consider themselves more "enlightened" than their American counterparts (notice that e-word popping-up again?). I'm of the firm belief that a middle ground should be arrived at concerning the sentencing thresholds of our respective continents, where a reasonable agreement between time in jail and eventual outcome can be agreed on to provide a
During this period of great hardship, settlers took solace in their faith. It gave them comfort, and was accordingly celebrated. This, I think, is why there are more adults who believe in "sky fairies" when compared to other comparatively atheist nations across the Occidental world, who didn't face the same barren landscapes and inhospitable climates as those who were setting about populating a young nation where industrialisation had a comparatively further journey to travel. True, Christianity and its values were equally present in the nations mentioned, but citizens of those nation had less pressing reason to seek solace and salvation in their faith as their American contemporaries.
You can't compare literacy and poverty in America to the other "free nations" mentioned in the Newsroom clip. This is down to two core factors: landmass, population. The other nations mentioned are small compared to the United States. True, Australia and Canada come close, but it's lacking in the latter factor: population (both nations have a tenth of the population of the UK, a comparatively tiny island). Despite its expanse of wilderness and mountains, America does actually boast a rather large population. You simply can't take care of everyone. And in a nation that's states are bigger than some countries, there's an awful lot of everyones. The question of literacy, however, isn't as easy - in my mind - to tackle than that of poverty. And education, in my opinion, is where you begin to arrive at where America has faltered. This generation is more concerned with consumerism and instant gratification than its predeccesors. When you go back even to the '80s, America's youth were just as smart and intellectually capable as their contemporaries in the nations mentioned in the Newsroom clip. Regrettably, that isn't the case now. The American curriculum wasn't a partisan battle ground. It was a place geared towards imparting common sense, wisdom and tools that would ensure that graduates were marketable in the world of work. It impressed upon its charges the "Three Rs." Though I hasten to add that a decline in standards is also visible among the respective education systems in the countries mentioned. And I admit to not being able to put a finger on absolute causes, though I reckon a lot of it has to do with progressively declining standards exhibited by older generations.
Is America the greatest nation on earth? It's a matter of perspective ,especially when you consider the multinationally available interface you've posed this question on. You are, currently, the most powerful nation on earth, and are thus, in my opinion, entitled to promote your success, however comparatively disproportionate that promotion is. But it's worth mentioning that your power-wielding predeccesors did exactly the same. Britain celebrated its imperial, technological and cultural achievements, as did our Roman predecessors. Why shouldn't you?
Lastly, I want to touch upon the notion of freedom. The United States, even in its current state, is undeniably the freest nation on God's green earth. And until you've lived under what I and many others refer to as the EUSSR, you have no idea what you could potentially be throwing away. Dwell on that.