Fragile
Frivolity
Charlie Earl
There are
roughly 23 million workers in the United States who are either unemployed or
under-employed. The frantic cries for jobs echo across the entire nation. Even
the robust shale fields of the Dakotas have a 3.5% unemployment rate. Given
that five to six percent is considered “full employment,” the Northern Plains
are good. So…let’s assume that 5% not working is the baseline for full
employment and robust economic activity. If 95% of the willing workforce is
gainfully employed, what products, goods and service are necessary for
sustaining the economy and building the nation
In recent
years, probably since the late ‘40’s-early ‘50’s, our economy has been consumer
driven. Gadgets and appliances, entertainment and leisure were huge portions of
the domestic economy. Unfortunately…consumer debt grew in importance as the
more frivolous aspects of economic activity expanded also. For years critics
have complained about the movement of manufacturing jobs to other nations. The
U.S. portion of manufacturing output has been relatively stable, but jobs were
lost through technology and productivity gains. We are indeed in a global
economy when one examines the domestic automobile business. Nearly every new
car that is sold has parts and elements from many nations across the planet. Most
of our plastic toys are molded and assembled offshore, and foreign “knockoffs”
compete with our most technologically advanced industrial sectors. To regain
our position as the prime global producer we must refocus on producing what the
world needs…..not frivolous items that encourage wanton consumerism.
It seems
reasonable that if our nation is to seriously address our fiscal nightmare, we
must be willing and absolutely committed to a national austerity regime. If we
have the national will to do so, then our reorientation of our national purpose
can be directed toward the staples of human life and progress. The fluff and
glitter can be left for other producing nations, and they can learn to cope
with mindless acquisitions and planned obsolescence. Let us vow to pursue
substantive and enduring production that creates a stable platform on which new
developments and creations can build. Bags of burgers and electronic games may
generate dollars of revenue and support a number of employees, but they do not
form the stable productive foundation of a nation that seeks to regain its
economic momentum. We must develop and build items of substance with long-term
value. In other words… craftsmanship (I know…politically incorrect) and quality
must be reintroduced to our marketplace. They should no longer be considered rare
and out of reach for most citizens.
An economic
society that emphasizes expendables as a cornerstone of its wealth-creating
system puts itself in dire straits if the global economy sputters. Human necessity
requires that we eliminate the “extras” when times get tough. In the national
sense a dwindling demand for non-essentials will cause upheaval in production,
sales and employment. At a personal level individuals will be faced with
curtailing their expenditures for the more frivolous items while simultaneously
attempting to reduce indebtedness resulting from their earlier acquisitions.
This effort will negatively affect economic growth in the short term, and may
cause major disruptions in the economy over the long haul.
Given the
bleak outlook for the United States because of massive national debt and huge
unfunded obligations, it seems that as the economy rebuilds, the emphasis
should be on producing items of enduring value and utility. The result should
be a less fickle or volatile productive sector and a populace with a more
substantial savings rate and net worth. The accumulation of savings will
provide the capital at reasonable rates for allowing the fruits of the nation’s
producers to be globally competitive. The time for fun and games, toys and
distractions has reached its curtain call. Let’s heed the message as we move
onward.
Charlie Earl
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