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Are Americans Entitled To A Permanently Soaring Standard Of Living Beyond The Rest Of The World?
Americans seem to have some unfortunate belief that simply by being Americans, they have an entitlement to a superior and increasing standard of living. Incorrect. That may have seemed to be the case for some decades, but they are in for a really agonizing surprise. An ever more global economy is a reality, and although the subject is somewhat overworked, it is true that Americans can not demand to be paid handsomely for similar work that Asians are willing to perform at a far lower wage. Neither can companies in India, China, etc., expect to have the ability to always pay those low wages forever. There probably will be some sort of a "meeting in the middle" during the coming years with Asian wages rising and American wages falling. That's good news for Asians, but not so great for a lot of Americans.

To a large degree, Americans are living off the heritage of our former small-government, free-market, capitalist economy that has been the engine that provided the growing standard of living Americans used to experience and today's Americans appear to expect. I say former, simply because we have anything but that any longer. The central government attempts to manage wealth creation while producing no wealth whatsoever. Its main products are rules, unsuccessful programs, and aggressive foreign wars. None of these has a constructive impact on the wealth of this country, and I believe that the "military-industrial complex" that President Eisenhower warned us about may be the most destructive factor of all. In any case, given his armed forces experience he sure must have known all about it. War is horribly costly, and as we've seen, once we get into one the mindset becomes one of "we need to have victory thus we have to expend whatever is necessary to achieve it." Sounds like a route to national bankruptcy. Think about what could have been accomplished with the money we've allocated to these wars. And that doesn't even include the social costs to individuals and families.

In any event, downsizing on a family level will be the new thing to do, whether we like it or not. A continuously increasing standard of living derives from private savings and investment, hard work, and a political environment created by a government that doesn't behave like business growth will proceed regardless of what the government might decide to do to impede it. To the degree those things are absent, so also will expanding private wealth be outside our grasp.

One does not have to like the laws of economics, and one can utilize the services of those with flawed views to get the answers one desires, however the facts remain the same.

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