WHERE IS AMERICA HEADED? This is a question that many people are asking. With the increase in
school shootings, the stock market falling, the problems with energies, and the
increased separation between Conservatives and Liberals, many are searching for
solutions. Why are these things happening? What is causing them to
occur? How can we stop it? Where is America headed? FOOD-- Since 1996, some politicians claim that food prices have decreased dramatically. They credit this phenomenon to the 1996 Farm Bill, which allowed deregulation in agriculture. Farmers could produce as much as they wanted of the crop of their choice, hence, increasing supply and lowering prices. But if this Farm Bill was so successful, why did food prices increase this last year. Commodity prices as a whole are at or near 30-year record lows!!! Therefore, the politicians' logic should tell us that food prices should also be near record lows. Where is that extra money going? Read on to "Agriculture". AGRICULTURE-- According to Economists, agriculture's infrastructure is purely competitive. This means that producers (farmers) will make no profits and no losses in the long run. The prices of commodities will equal the cost of production. As supplies become less, such as farmland due to city growth and industry growth, the cost of production will go up slightly. As technology advances, the cost of production per unit will decrease. Any given year, agriculture can be broken down into three parts: inputs, production, and outputs. The input sector contains the items used to produce the commodity, such as fertilizer, water, and seed. The output sector uses the commodity that was produced, and they may manufacture something from that commodity, such as ethanol or food. The input and output sectors are both classified as monopolistic competition, similar to retail. They are considered to make some profit, but not as great as monopolies. However, as these companies have been buying out smaller companies, they decrease their competition and increase their profits slightly. They have more money to spend on research and development for the advancement of technology. A fundamental principle of economics states that technology will advance exponentially as companies become fewer and fewer. In the Clinton Era, we saw technology advance and the economy boom like we had never seen it before. What does that tell you possibly about not only agriculture, but all industries? Monopolies. To answer the question in "Food", the extra money from food is going into the pockets of these few companies in the input and output sectors of agriculture which is being used largely for research and development. HEALTH CARE--I expect to see socialism within the medical field in the near future. We have reached the point where many people cannot afford health care, yet they have just as much right to live as a millionaire. They receive the attention needed, and someone else is supposed to pick up the tab. This is an inefficient method, but our technology grew faster than our economy, so in many cases, we have no choice. Health care expenses have increased approximately tenfold in the last 30 years. That is an annual rate of approximately 8% increase per year, but it is increasing exponentially. It costs many people their entire life's savings to pay their medical bills when they become elderly. Where does this money go? Technology-- in other words, Research and Development. Similar to the agricultural industry, only a few companies exist in the pharmaceutical industry. Eventually, technology will be so advanced that new companies will be devoured by the multi-billion dollar corporations, and monopolies will exist. Without government regulations, these monopolies will be able to set their own price on medicines, and we will see the separation of classes grow. Hopefully, if we do have socialistic medicine, we will find a more efficient method than other countries so that we don't have waiting lists for surgeries. ENERGIES-- Once again, the energy industry consists of only a few corporations. These corporations possess all of the oil, which makes them extremely powerful worldwide. They can potentially manipulate the price of oil by adjusting the supply, and in turn, cause a worldwide shortage or surplus which affects the world economies and world peace. From March 2000 to March 2001 during recession time, America saw record highs for the price of gasoline. The high prices were primarily blamed on OPEC. During the same time period, Exxon-Mobil, the largest petroleum corporation in America, experienced record profits with their earnings per share increasing 50% in less than one year. In fact, I heard on television that Exxon-Mobil made more money in nine months, from March to December 2000, than any other petroleum company has ever made in its history adding all its years together. This tells me that a few corporations have a little too much power. Similarly, we saw the same in natural gas, propane, and all the other energy utilities that also at least doubled in price in 2000. I expect in the future, we will see an increase of alternative fuels and energies, such as solar and wind, but I will not be surprised if these few companies buy out the smaller companies that own the alternative energies. TRANSPORTATION-- The transportation industry is going to face some major difficulties in the future. Similar to other industries, we are seeing monopolies forming in transportations. Only have a few corporations are left in the airline industry, such as American Airlines and United Airlines. These corporations are parent companies to many smaller airlines. The only public transportation by train that I'm aware of is Amtrak. Only a few corporations own the automobile industry, and the cost of automobiles are increasingly higher. For instance, in the 1950s, a new automobile cost approximately $2500. In the 1970s, a new car cost about $3500, which is less than 2% increase per year since 1950s. In 2000, a new car costs around $25,000, or approximately 7% per year increase since 1970s. In other words, the cost of automobiles in the last 50 years have been increasing exponentially. At this rate of 7% per year increase, the cost of a used beat up college car in 2030 may cost as much as $30,000!!! If that is the case, only the wealthy will be able to afford private automobiles because the average salary only increases about the same as inflation which is 3% per year. Perhaps if America goes into a recession, prices will not increase at that high rate because technology growth will be slowed. EDUCATION-- Higher education is becoming more costly each year also. College costs approximately double the rate a decade ago. This computes to approximately 7% increase per year, or over twice the rate of inflation. In fact, Edward Jones Investments estimates that by the time today's babies graduate, a four-year college will have cost them anywhere from $80,000 to $200,000. Eventually education will become so expensive that either college will be avoided or else the government will intervene. My guess is the latter of the two. COMMUNICATIONS-- Technology has made it a lot easier for us to communicate with others. As the phone companies like to claim, it has brought people together. But isn't it ironic that the technologies to bring us together require us to be alone to use them-- phones, cell phones, email, online chat programs, and the internet. Another common thread, all of these technologies can trace your very location on earth. Phones can be tapped. Cell phones can be located by Global Positioning with the use of satellites. Email, chat programs, and use of the internet can all trace people, and may be monitored by others. In fact, George Orwell's claim in 1984 that "Big Brother is Watching" may not be too far fetched. The Feds certainly have the technology to monitor us. A positive aspect of communication technologies is that the economy booms when a new product is introduced. In the 1920s, the radio became common and boosted the economy because it was a new way to do business and advertise. In the 1990s, the internet became common and we saw the boom during the Clinton years. RELIGION-- The morals in this country are progressively getting worse and worse. I don't think too many people will argue with me on this point. School shootings, crime and murders, abortions, cloning--- they are all becoming increasingly more common. Most everyone is searching for the answer why, but few know the answer... and many don't want to admit it. America is losing God. America is no longer "...One Nation, Under God, Indivisible..." as our Pledge of Allegiance suggests. Political parties are becoming farther apart and the separation between Christians and non-Christians is increasing. The separation between Church and State is growing also. Contrary to popular belief, Thomas Jefferson had NO INTENTION to separate Christianity from government!!! His words were taken COMPLETELY out of context! In his 1784 book, Notes on Virginia, Jefferson writes the following: "And can the liberties of a nation be thought secure when we have removed their only firm basis, a conviction in the minds of people that these liberties are of the gift of God? That they are not to be violated but with his wrath? Indeed I tremble for my country when I reflect that God is just; that his justice cannot sleep for ever...” To read more about Jefferson's words and beliefs on Church versus
State in full context from Focus On the Family's "Citizen Magazine",
click on: http://www.family.org/cforum/citizenmag/features/a0012355.html. In short, technology has inarguably transformed
America, there is no question about it. Technology has provided better
ways of growing crops, allowed us to live longer and travel farther, and enabled
us to communicate with others worldwide. Technology also in many cases is
causing the predicament that we are entering. Ironically, technology and
capitalism are potentially causing our national defense to weaken by becoming
reliant on other countries. Technology and capitalism are also causing an
increasing separation of classes which may lead to increasing violence. As
Orwell states in 1984, "The aim of the High is to remain where they
are. The aim of the Middle is to exchange places with the High. The
aim of the Low, when they have an aim-for it is an abiding characteristic of the
Low that they are too much crushed by drudgery to be more than intermittently
conscious of anything outside their daily lives-is to abolish all distinctions
and create a society in which all men shall be equal. Thus throughout
history a struggle which is the same in its main outlines recurs over and over
again." To add, health care is aiding in the separation of
classes. With health care costs and costs in other industries increasing
at over twice the rate of inflation, the separation of classes may become
excessively large because of technology and capitalism. Finally,
technology has
taken away our privacy from others. Written in March 2001 |
||