The more we produce, the wealthier we are, unless our appetite for consumption grows at a faster rate than production. It\u2019s a relatively simple ratio that is essential to the basic concept of making\u00a0 America (or any other society) more self-sustaining.<\/p>\n

<\/a><\/p>\n

Demographics are a critical determinant in the capacity of a society to be self-sufficient.\u00a0 In Haiti, for instance, an inordinate percentage of the population is below the age of fifteen (38%<\/a> compared to 21% in the U.S.<\/a>).\u00a0 To the extent possible (which is currently very limited), they must be fed, housed, and clothed.\u00a0 Most schools in Port-au-Prince were destroyed in the January earthquake; it will take years to reconstruct and staff them.\u00a0 Children must be supported but cannot, and in fact should not, be counted on to be producers.<\/p>\n

<\/a>Additionally many Haitians are infirm, suffering from malnutrition, or are emotionally traumatized and thus not capable of working.\u00a0 There are others who may be healthy, but who never developed the skills to be productive.\u00a0 Compounding the limited assets of Haiti to produce is the fact that the country has been stripped of much of its natural resources after years of excessive deforestation.\u00a0 While charity may now be the most effective way of addressing the extreme poverty in Haiti, the long-term solution is similar to that in any other country. The capacity to produce as many goods and services as the population needs to survive must be developed.\u00a0 There must be opportunities to be productive which will result in opportunities for people to work.\u00a0 In a country with 80% unemployment, this is a long overdue must.<\/p>\n

The United States is not immune from demographic changes.\u00a0 As you can see in the table below, according to the U.S. Census Bureau<\/a>, in 2050 the percentage of the population that is over 80 years of age will be over four times what it was in 1960.<\/p>\n\n\n\n\n\n\n

Percentage of U.S. Population over 80 years of age<\/td>\n<\/tr>\n
1950<\/td>\n	1.8%<\/td>\n<\/tr>\n
2010<\/td>\n	3.8%<\/td>\n<\/tr>\n
2050<\/td>\n	7.5%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n The acceleration of this problem was cited<\/a> by New York Times<\/em> columnist Thomas Friedman on April 4, 2010:<\/p>\n It was just reported that Social Security this year will pay out more in benefits than it receives in payroll taxes \u2014 a red line we were not expected to cross until at least <\/a>2016.<\/p><\/blockquote>\n Fortunately, some people over the age of 80 are productive.\u00a0 In fact, they produce more for society than they consume.\u00a0 At the same time, many people are retiring from work at earlier ages<\/a>.\u00a0 In the U.S. in 1910, the average age at which people retired was 74-years-old (although many did not live that long).\u00a0 In 2002, the average retirement age had dropped a dozen years to 62.\u00a0 While this may be a healthy development \u2013 rewarding people for \u201cjobs well done–\u201d it means that fewer people are pulling the wagon uphill to ensure that we adequately provide for all citizens.<\/p>\n If we have fewer people producing for our \u201csociety of consumers,\u201d each one of these people must produce more.\u00a0 Perhaps more importantly, he or she needs to produce \u201cmore smartly.\u201d\u00a0 In other words, as a society we must ensure that what is produced meets at least the basic needs of all citizens.\u00a0 A fundamental tenet of a free-market system is that production will be driven by that for which people are willing to pay.\u00a0 If you\u2019re a smart entrepreneur, you can take advantage of this phenomenom, but it may not be particularly helpful to society at large.<\/p>\n <\/a>For instance, a company such as Pinnacle Casinos can build a new casino (possibly in a flood zone<\/a>), and make a large profit from the operation of the gambling mecca.\u00a0 However, such a development can result in significant societal harm, as the people who can least afford to lose money do so.\u00a0 They may then not be able to feed their children, meet a mortgage payment, or even be productive at work, if they are consumed with their gambling losses.<\/p>\n Similar reservations might be raised about the production of guns, alcoholic beverages,\u00a0 pornography, and a host of other items that at the very least should come under closer societal scrutiny as to their value.\u00a0 I am not advocating the prohibition of any of these items; only that we see them in a different light from what is needed to provide basic needs for everyone.\u00a0 If it does not already exist, we need a metric that excludes the production of dysfunctional goods and services from the measurement of positive production in our society.\u00a0 \u00a0Perhaps such a measurement should even give them a negative value, because in the long run they weaken us.<\/p>\n <\/a>As we examine the true benefits of what we produce, let us not forget the distortion that Wall Street shenanigans brings to our society.\u00a0 When sub-prime mortgages are bundled together as an investment, and a financial institution purchases these \u201cbad assets,\u201d it does not add to our wealth.\u00a0 Rather it weakens us, while a few individuals game the system.\u00a0 When these bundles are insured by a company like AIG, we should not count the premiums they receive as wealth.\u00a0 They really represent a foreboding of financial disaster for the most gullible among us; they have negative value.\u00a0 \u00a0As we all know,\u00a0 speculators who have made money by swindling people, have\u00a0 been rewarded by the government for \u201cceasing and desisting,\u201d and then finally they go back to their play houses and start another round of swindling.<\/p>\n Sustenance for a nation, or for the world, involves many complicated variables.\u00a0 But what remains simple is that we must at least produce as many goods and services as we need to survive.\u00a0\u00a0 The demographics of this equation are different from what they were at the beginning of The Great Depression in 1929; we have fewer producers.\u00a0 Perhaps more alarming is producing items that can be detrimental to our society.\u00a0 When guns are produced at the same time that we lack adequate health care facilities in inner cities or rural areas, we are in trouble.\u00a0 When alcohol is a money-maker for businesspersons, but building adequate housing for low-income people is not profitable, we are in trouble.\u00a0 When a casino can be built in a flood zone, we are in trouble.<\/p>\n <\/a><\/p>\n \n \n The “Producers” Now Need to Pull Harder<\/dd>\n<\/dl>\n<\/div>\n <\/a><\/p>\n We need to not only produce more, but to produce \u201cmore smartly.\u201d\u00a0 This process\u00a0 involves judgments that at times will restrict some individuals\u2019 freedoms.\u00a0 It certainly will harm those who peddle vices as well as frivolous items.\u00a0 We may not yet be ready to go full throttle in this direction, but at least we have to widen the conversation.\u00a0 Necessary economic incentives must be provided for investment opportunities to produce what is healthy for our society.\u00a0\u00a0 These decisions are rarely easy, but the price we pay for ignoring them is too high for us to justice to both our own population and those who live outside our borders.<\/p>\n","protected":false},"excerpt":{"rendered":" Perhaps more importantly, he or she needs to produce \u201cmore smartly.\u201d In other words, as a society we must ensure that what is produced meets at least the basic needs of all citizens. <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[93,45,128],"tags":[356,357,358],"yoast_head":"\n