Under the Gloom, Lies a Boom
by Tom Donelson on February 24, 2013 at 11:08 AM
There is much to fear about in our future with rising debt, unemployment 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 record number of Americans on food stamps, unemployment, and disability insurance. America is retreating from the world as we lead, and we are seeing the Middle East in disarray and more unstable than when the present administration took office. China is challenging us in the Western Pacific while Europe slowly implodes as their Welfare state collapses.
But underneath all of this lies a true, economic revolution, only waiting for more entrepreneurial policies emanating from state capitals and Washington, DC. Even with a recent decline in birth rates, America still enjoys a more robust demographic than our allies, and another economic growth spurt along with a sensible immigration policy will only encourage the birth rates to go higher. Furthermore, we have something else, a Constitution that provides stability.
It wasn’t that long ago that farming was viewed as a losing proposition, but now with new fertilizers and chemicals, along with genetic engineering, it has transformed into one of the most efficient, productive enterprises and 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 have produced 21 billion dollars in exports.
There are negative government policies reducing this efficiency including unnecessary biofuels programs that are diverting acreage to ethanol with the result of, not just shortages, but boosting prices beyond what the market should be. Eliminate ethanol subsidies, and we will see agricultural revolution that will allow America to continue as the world's bread basket.
Our European competitors have their problems, including subsidy programs proving unsustainable with much of the cost transfering 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, and America has the largest combined gas, oil and coal resources in the world. 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 for our own energy needs but become an energy exporter. The energy market will provide new 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 dollar boost 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 and not the Middle East.
New revolutions are occurring, and the information technology as Americans are multitasking on their iPhones and iPads. One can easily look up information in quick order 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 the revolution impact is being slowed down.
However the economic revolutions are 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. The first half of the 21st century will be as much an American century as the last half of the 20th century.