At some point this Nation will need to get cozy with fundamental economic realities and given the content of Mr. Obama’s speech I find the following two incredibly relevant:
1) A Globalized Economy is no economic advantage for a Nation that consumes and/or debt-loads in excess of its durable economic output. Technology or technological innovation, on its own, is neither a job creator nor is it a measure of economic capacity.
2) Wealth distribution, based on productive capacity, is the only effective mechanism for distributing wealth across an economy; without this key feature there can be no robust Middle-Class.
Facebook may be establishing the curve on integrating tech and have a market cap in multiples of Ford Motor Company, but there the economic dispersion ends; FB employs 8,500 whereas Ford employs over 300k and thousands more in collateral and support industries. Apple may be a powerhouse on tech-development and application/integration selling millions of iPhones however, they’re made in China and a great majority of their reserves are banked off-shore.
Yes, the U.S. may still lead the planet on tech-innovation and development, but it’s utterly meaningless in economic terms to the national economic matrix if the integration of tech, with the manufacturing processes occurs elsewhere. Having ignored these two simple truths is key to understanding the cause for why the distribution of wealth (domestically) is increasingly one-sided; it is the nature and inevitable outcome of a service-speculative based economy.
Curtis C. Greco, Founder