President Trump has unleashed the animal spirits of our economy. African American unemployment is at a record-low 6.8%.
Innovation + Productivity = Economic Miracle
Warren Buffett’s Time Essay gives us the most accurate and concise explanation of the economic miracle known as the United States of America. It is a message of hope that the greatest economic powerhouse the world has ever known will continue its unprecedented championship run.
“Two words explain this miracle: innovation and productivity. Conversely, were today’s Americans doing the same things in the same ways as they did in 1776, we would be leading the same sort of lives as our forebears.
“To all this good news there is, of course, an important offset: in our 241 years, the progress that I’ve described has disrupted and displaced almost all of our country’s labor force. If that level of upheaval had been foreseen–which it clearly wasn’t–strong worker opposition would surely have formed and possibly doomed innovation. How, Americans would have asked, could all these unemployed farmers find work?
“We know today that the staggering productivity gains in farming were a blessing. They freed nearly 80% of the nation’s workforce to redeploy their efforts into new industries that have changed our way of life.”One of the many beauties of our nation is how our economy does organically “redeploy” workers to “new industries;” indeed that is one sign of a healthy, robust economy. Easy to do in boom times, but bad times leave cast-off workers mired in unemployment and despair. We are entering boom times, and we can’t allow all the hoopla to drown out the forgotten people.
Buffett closes his short essay with an optimistic challenge:
“The market system, however, has also left many people hopelessly behind, particularly as it has become ever more specialized. These devastating side effects can be ameliorated: a rich family takes care of all its children, not just those with talents valued by the marketplace.
“In the years of growth that certainly lie ahead, I have no doubt that America can both deliver riches to many and a decent life to all. We must not settle for less.”I agree. How do we do this?
How do we "ameliorate" the "devastating side effects" and help those left behind catch up?
How do we build an America that will “deliver riches to many and a decent life to all?”