There is much to fear about our future with rising debt, the unemployment rate not dipping below 7.7% in years and many jobs disappearing as the participation rate of employment is down to 1980’s levels. To top it off, the GDP contracted with a record number of Americans on food stamps, unemployment and disability insurance.
America is retreating from the world as we lead from behind and we are seeing the Middle East in disarray and more unstable than when the present administration took office. And, China is challenging us in the Western Pacific while Europe slowly implodes as their welfare state collapses.
But underneath all of this lies a truth – an economic revolution is occurring; only waiting for more entrepreneurial policies emanating from the states and Washington DC. Even with the recent decline in the birth rate, America still enjoys more robust demographics than our allies and another economic growth spurt along with sensible immigration policy will only encourage birth rates to go higher. We also have something else, a Constitution that provides stability.
It wasn’t long ago that farming was viewed as a losing proposition and we might be a net importer. But, now with new fertilizers and chemicals along with genetic engineering farming has transformed into one of the most efficient productive enterprises and into a more dynamic business. We have set new records in exports and with both China and India adding to their middle class; this means even more markets. In California, some 400 crops has produce 21 billion dollars in exports.
There are negatives government policies reducing this efficiency including unnecessary bio-fuel programs that are diverting acreage to ethanol with the result of not just shortages, but boosting prices beyond what they should be. Eliminate ethanol subsidies, and we will see an agricultural revolution that will allow America to continue to be the World’s bread basket.
Our European competitors have problems including subsidies proving unsustainable with much of the cost transferred to farmers throughout southern Europe. With more regulations and tighter labor and energy prices, Europe will fall further behind the United States in the agricultural market.
Fuel, in particular carbon fuels, are seeing their own revolution as the notion of “peak oil” and other gloomy predictions of decreasing energy sources have disappeared. New technology including fracking has opened up energy sources not previously available. America has the largest combined gas, oil and coal resources in the world and within a decade, we could become the largest producer of all three. With new finds throughout the country, including California, we will not just be able to provide our own energy but we could become an exporter. The energy market may provide employment opportunities throughout all of America and the increase of natural gas will prove to be a cleaner substitute to coal and a superior alternative to wind and solar!
Gas and oil revenues added a half-billion dollars to the economy in 2011 and could produce even more in the future. Oil embargoes from unstable governments may be a thing of the past and it will be the United States that holds the key to future energy development – not the Middle East.
New revolutions are occurring in information technology as Americans are multitasking on their Iphones and Ipads. One can easily look up information on a machine that fits in the palm of your hand.
There are clouds capable of hindering these revolutions as we are stuck with a government ideology that believes all good things come from Washington and these revolutions are being slowed down. However the economic revolution is continuing in spite of what is happening in Washington and a change to a more friendly business atmosphere will unleash this sleeping giant once again and the first half of the 21st century will be as much a American century as the last half of the 20th century.