Are you getting tired of my ideas on economics? Well, there is more in this blog.
Here is the list of ideas that I have pushed in the past on economics, Those are:
(1) Natural resources
(2) Capital
(3) Government policies
(4) Competitive work force
We all have to agree that the USA has much more natural resources than most other countries of the world and it has been one of our economic drivers since the beginning. As our population has grown, the amount of natural resources per citizen has continued to go down.
Capital is still a big factor, but it has declined as well over time. The world is more organized to provide capital if the business plan is a good one. New companies are able to secure billion of dollars each day from the capital market so getting the capital required is getting easier and easier make it less of a limiting factor.
Government policies are still a big factor but they work a little differently than other factors. In the case of government policies they operate more like a "rope". That means they can pull and economy down, but they can not push and economy up. If you notice when government policies in the form of regulations are eliminated or reduce, they appear as business stimulants;
The final point and the one I want to stress in this blog is the competitiveness of the work force. This factor is made up of at least "two" parts, (1) Ability to produce and (2) Cost of that factor. If you look around the world, any new company wants to operate in a country that has the best ratio of these two factors. In the case of the USA, even if we have the smartest and best educated workforce, it is still not enough if that workforce is paid more than they are worth. The current policy of our government is pushing higher wages to the point that those people will be paid more than they are "worth". If you look at China, they have a workforce that is equal to or better than the USA and are paid less. That gives China a value ratio that is much better than the USA and it is getting worse for the USA. If you look at Asians here in the USA, they have stressed education at all levels and thus have a value ratio that is much better than the USA average. Just look at where the USA is ranked in math----40th--- in the world. If the USA wants to improve our quality of life, it can not be raised by raising the rate of pay without also significantly increasing the productivity component which means better intellectual productivity.
How could it be simpler? Families have to start demanding their children perform much better in their own education like Asians have shown us. Families are the problem and the solution if we would just recognize that simple factor.
PS---While our schools are teaching racial class warfare, what are they "not" teaching? There are only so many hours in a day and when something is added, something has to be eliminated. What is being eliminated?
This is a repeat, but we still need to be reminded about the student loan program. All college classes are not equal when it come to competing with the rest of the world for a high quality of life. The USA is 40th in the world in math and we were this bad before the student loan program started and we have not gotten any better. Why is that? What is all this money and time for our kids been used for? It is clear that it has not been used to solve our most basic problem or prepare our kids for the real technical future. We can not raise wages until we raise the intellectual productivity of the kids of the USA.
