The primary purpose of our publication is to provide useful and effective information while at the same time providing an understanding of current trends in the marketplace, and then subsequently joining together these concepts into a meaningful conclusion to provide companies with an effective result. An effective outcome, from my perspective, is to purely think about the trends shaping our economy, and having the insight to project these trends into your sales and marketing strategy.
We continually look for new and innovative ways for companies to look beyond the daily scope of their business. First and foremost, consider the purpose. The operative word is “trend”, so let’s begin by providing a definition:
Noun: a general direction in which something is developing or changing.
Verb: change or developing in a general direction.
The most effective way to construct your plan is to immerse yourself into a profound appreciation of the economic landscape in America, and the trends shaping this landscape. In past publications, despite my overwhelming desire, I have steered clear of the political composition, unfortunately, as business executives, we need to consider the path we are headed and how we can intellectually capitalize on this potentially negative trend and transform it into a positive development.
Consider the media environment and broad message America has been digesting each and every day. Russell Brand, the world’s greatest intellect is a prime example. In a recent interview; he proclaimed that a ‘socialist revolution and massive redistribution of wealth is necessary in America, he believes in heavy taxation of corporations and an increase in punitive responsibilities for energy companies exploiting the environment. ‘ This is the rhetoric our young people are hearing and the message being embraced by the Obama administration and the liberal media. How ridiculous. Who is Russell Brand, and since when does a British comedian become an expert on the capitalistic revolution?
We need to begin by exploring the failure of our current president and political system. No world leader in history has made so many errors and provided so few options. The last five and a half years will shape our economy and business trends for decades well into the future. One failure after another is well documented: the economy, Benghazi, Solyndra, the stimulus package, health care reform, foreign policy, the national energy policy, partisan politics, social reform, the campaign to divide America through class warfare. Not to mention the fact that his administration has been and will be documented as the worst selection of cabinet members in history.
- The federal debt as a percentage to GDP (Gross Domestic Product) has exceeded 100% in every year since 2007. See the graph below.
- The number of people receiving benefits under the federal government has grown from 94 million people in 2000 to more than 128 million in 2011. This means that over 41% of the U. S. population receives at least one benefit.
- A large portion of the American public have two kinds of income: (1) money they earn and (2) money transferred to them through a taxpayer service vehicle.
The Obama Policies are here to stay, for a long time to come, a very long time. The employment and industry growth trends are hard to pinpoint, however, if we take a detailed look at the industries shaping the American landscape, here is what our team of experts have ascertained.
First of all, we must look at the current economic and social trends shaping our lives. These trends will have a profound impact on our daily routine and will influence the prospect of the future:
- The movement towards bigger government, higher taxes, and more entitlements. Obama and his administrative policies have opened the eyes to countless demographics that consider capitalism to be out of favor and socialism is acceptable. We must acknowledge that a vast percentage of people in the country are going to expect the government to create a long term vehicle to transfer wealth. Productive end entrepreneurial people are going to have to work harder with the expectations of higher taxes and fewer benefits. Because of this social and economic shift, expect corporations to redefine their purpose, to build legitimacy within their core customer base within the eyes of the demanding consumer. Companies must think way outside the box; they must find and establish new and creative ways to increase their organic growth and profit platform. The country will be firmly and problematically divided on the subject of increased taxes and bigger government and this will continue to create social class division in the U. S.
- Domestic oil production. Contrary to liberal viewpoints, in order to gain true fiscal financial freedom, we must first liberate our country from the dependence on foreign crude oil. Saudi Arabia is running out of natural resources on an exponential basis. The U. S. has the largest crude oil reserves in the world. Special interest groups have limited the production of these resources due to environmental concerns. Technology and neo-production methods have made the recovery of these resources implausible from a environmental standpoint. The government needs to relax the regulations and create more jobs in American and eliminate the funding of foreign natural resources. It is no secret that domestic energy production underpins virtually element of the domestic economy. Sixty years ago, it was not uncommon for domestic oil wells to produce 10,000 barrels of oil a day, today, many of these wells in the same fields (primarily West Texas, Alaska, and The Gulf) are producing 1,000 barrels per day and more. A single well producing this volume of oil creates $30 million in annual revenue, 1000’s of jobs along with untold federal and local tax revenue. Energy production is the foundation of the U. S. economy and contributes significantly to GDP productivity. Me MUST maintain a reasonable oil and gas exploration in the U. S. and rid ourselves of the dependence on foreign crude oil.
- Reasonably priced alternative energy sources. A movement to cheaper and more practical solar power, wind, alternative energy sources. Not a government funded programs designed to fund special interest and political action committees, but entrepreneurial endeavors that encourage the development of alternative technologies with real life solutions. Along these same lines is the reduction of CO2 emissions to a historic low. The government has wasted way too much taxpayer dollars chasing alternative energy ghosts because that is exactly what we have done in the past, look at Solyndra. You will see a very strong movement towards innovation driven by scientists, business visionaries, and investors. I personally know of a company who has invented the technology to convert animal waste into useable hydrocarbons. This is an incredible process because it alleviates three serious concerns: animal waste disposal, a useable highly refined product, along with job creation, all three of which make a more productive environment and a more productive economy.
- Traditional domestic industrial production. A movement to traditional and historic gross-producing industries. America was founded on the principle of growth and innovation. The primary industries that augment that principle is construction, domestic tangible innovation, domestic intangible innovation, information, and domestic production. The construction industry is expected to rise by 33% through 2020 due to an underdeveloped infrastructure. Domestic manufacturing, higher education, advancements in health care and medicine, the movement to alternative fuel sources, professional and scientific services, mathematics and engineering, oil and gas production.
- A local job creation economy. The boom to the open borders in America is coming to an end. Not because the melting pot has dried up, but because we need to create jobs within the existing outline within demographic profiles of American citizens. We need to “care for” and “provide for” the people within the borders, without inviting more competition for the infinitesimal employment prospects in America. Simply stated, we are going to see lackluster job growth because of higher taxes and unemployment numbers will not improve dramatically until we begin to cut taxes. At the end of the day, we will see a movement to supplement the job creation and job growth by people who have well established credentials as U. S. citizens.
- The changing cultural drive. The millenials have become the weak link in our economy. These are the trophy kids who have no work ethic and no competitive drive, they are not ready to commit, and they believe that big business is evil with a negative impact on society. From the standpoint of achievement, they want less than they were given. Fortunately, they believe education is more important than ever and will eventually snap out of this disturbing behavior because they have a keen sense of accomplishment and are late bloomers. I think you can even introduce the idea that the reason the millenials have acquired these traits in the first place is because they have been brought up as trophy kids, and I think they will lose this trait over time.
- Shift in the job market. Employers will find unsuitable talent pools to fill the expanding job roles. American, as well as the rest of the world has an aging population. In order for prosperity to persevere, the country must provide its youth with adequate educational opportunities. Although educational access is growing nationally, not enough students graduate with the skills desired by global employers and the market needs to persuade this expertise. Furthermore, woman, an increasingly well educated force in the market, with an incredible competitive drive, will become a factor in job fulfillment.
- The end of cheap China. As the economic engine evolves in China, it will become a lesser world faction. Why? Because they have tasted a new found wealth along with an emerging manufacturing popularity. The only substance of stability pertaining to the health of China’s economic engine is their cheap labor force, which is rapidly dwindling. The price of human capital (labor) has increased by as much as 20% annually for the last 4-5 years driven by a strong demand for goods and services and inexpensive production. China has literally priced themselves out of the world market by increasing their labor prices, and at the end of the day, NO ONE in the world, especially America, is going to buy Chinese goods and services at market rates. In short time, these jobs will be transferred to domestic counterparts who can produce the same product at the same price with much higher quality. The U. S. economy is still double the size of China (number 2), and triple the size of Japan (number 3). Sorry folks, but China is slowing, and it will continue to move in that direction.
- The movement to become a society of contra-form. This county must become the world leader once again. In terms of innovation, invention, scientific achievement, engineering, productivity, and the entrepreneurial productivity. This concept begins first and foremost with education, training and knowledge; we must once again embrace the belief that education drives innovation and invention is what made this country what it is today, and will make it what it desires in the future. No other country has the prosperity equal to the U. S. , not even close, you are going to see an enormous change in innovation like none other.
SO NOW WHAT?
Like any shift, we must examine these trends shaping our environment and transform them into real life and productive results. Never before has demographic change happened so abruptly and has divided the country so decisively. Companies operating in hope-a-land will be looking at others in their rear view mirror. Companies embracing these changes will adapt quite nicely.
Trends, by definition, are a general direction in which something is developing or changing. In almost all cases, current trends are short-lived, given time, they will be history. Understanding how these shape our lives is the difference between good leaders and great leaders. The political landscape in our country has been created by the citizens of a democracy, they have been elected. You can adapt, flee or die. It will take a long time to reverse these incredibly bad decisions of our president and for that matter, Washington in whole. Think about what you have just read and how you can incorporate this into your business to make it better.
We simply like to open your eyes towards looking into the next 6-10 years. Some of the material we present is a way for some insight and a desired solution by incorporating these trends into our business strategy is the smart move. Most of the information presented in our writings comes from conversations from everyday business people and a vast amount of resources.