The Economic Pie and Your Piece in it.

I often get frustrated trying to explain this phenomena from a neutral standpoint.  Yes, with the growth of new technology and better implication techniques of existing  technologies, the economy grows.  In addition, it is true that economic growth should not be viewed as a ” zero-sum ” game.

However, what is true is that systematic changes are underway that will change the dynamics of American society.  What does it mean to be a member of the “middle class”?  50 years ago, this was done with an honest job that came with benefits.  100 years ago, this was done through hard work and playing by the rules.

Today, you need to be creative, innovative, on the cutting edge.  This is crucial not only to achieve great wealth, but even just to belong to the middle class.  For example, logistics costs were an extremely high percentage of GDP in the 1970s.  The government responded by deregulating certain transportation systems, including rail and roadways.  Logistics costs began to decrease which allowed the U.S. to regain some economic advantage.  This came at the cost of many inefficient companies leaving the market.  Those who relied exclusively on the Railroad or Highway Commission Authorities did not know how to legally play in an environment ” without pre-established rules “.

Companies then had to establish smarter logistics systems.  Job positions were condensed, and no longer was it economically affordable for many different individuals to have their own sets of privileged micro sets of data.  Information, Financials, and Resources/Product had to be dispersed throughout the supply chains.  Someone in control of logistics also had to have access to all the information to sub-optimize all the different components for the company.

The same is true for the American citizen.  The rules are changing, you need to be fully cognizant of the changes around you in order to “thrive” or at least in order to do okay.

The social doctrine: Go to high school, Get A’s, Go to College, Graduate, Work X amount of Years, Retire at 65 is no longer valid.  The truth is, that now there is no model, which is both “scary” and exhilarating.  You control your future and your potential success.  It requires confidence, determination, and focus.  Interestingly enough, these are the same factors that paved success 100 years ago, just now the standards have been increased.  You will need a strategy, you will need to think, to even achieve “average” economic status.

This will increase economic growth (and efficiency) in the U.S. over the long-term.  Also, a society that thinks falls very much so in the democratic traditi0n.

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