By any standards, the American economy is unhealthy. In recent years, the American economy is teetering like an earthquake: millions of Americans have lost their jobs, businesses have closed down, houses have been foreclosed, students have lost scholarships, and social services have been greatly reduced. In the face of the crisis, one question has become particularly important: how can we get the economy running again?
Contradictory answers abound: low wages, high wages; Cut too many benefits and provide more basic benefits; Relax supervision and strengthen supervision; Increase expenditure to stimulate the economy and reduce debt; Raise the tax rate and lower it. The result of the debate is very important, because the government's decision really determines whether to improve or worsen the economic situation. For example, after the financial crisis, hundreds of banks in the United States closed down one after another, but there was no banking crisis in Canada, precisely because Canada's banking policy was different from that in the United States.
However, people's discussion on revitalizing the economy has completely failed to take into account a fundamental question: what is the purpose of developing the economy? What are our economic goals? What do Americans want from it? More material products? Everyone can afford to go to college? More leisure time? Universal health insurance? The lower the tax rate, the more benefits? Is it fair? Healthy and sustainable natural environment? Security? happy ...
Surveys show that Americans want to spend more time with family and friends. However, compared with the previous generation of Americans, they spend more time on work and commuting. If the economic situation requires people to work longer hours, it is certainly impossible to increase their leisure time with family and friends. In addition, despite working longer hours, the actual income of 80% of Americans is even lower than that of 10 years ago. "You are lucky to have a job"-this replaces people's desire for an expanding middle class.
People in other countries have also begun to notice what happened in the United States. Take a recent riot in Sweden as an example. IKEA, a famous Swedish furniture company, opened a factory in Dainville, Virginia. Workers in this factory earn $8 an hour. Factories often force workers to work overtime, which seriously affects their family life. Workers' benefits are also very few, and holidays are also decided by the company.
The workers were very angry. When the government of Dainville drastically reduced the taxes of IKEA, local workers were full of expectations that their wages and benefits would be the same as those of IKEA employees in Sweden. In Sweden, the minimum wage of IKEA is equivalent to $65,438 +09 per hour. In addition, Swedish employees are entitled to at least five paid holidays each year, and all overtime work is voluntary.
Although Dainville factory workers complained, local government officials did not respond. They think that the IKEA factory provides jobs for local people, and low wages and benefits are also fair deals. However, in Sweden, this story became the front page news of Stockholm Daily. Many Swedes believe that IKEA's attitude towards American employees violates the good corporate image that the company has always established; They think IKEA treats American employees as badly as American companies treat Mexican employees. "This is a big problem for us." A Swedish labor leader said.
Ingrid, the spokesperson of IKEA? Steen called the situation in Virginia "regrettable" and admitted that the wages, benefits and working conditions offered by IKEA to Swedish and American employees are very different. However, she added: "This is related to the living standards and basic conditions of different countries." Oh, dear! Obviously, the United States is IKEA's low-wage outsourcing destination, and in IKEA's eyes, the United States is a third world country.
Will Swedish utopian social reformers boycott IKEA because it exploits American workers? Maybe it will. Perhaps the American authorities will respond like this: "Even so, Swedes pay higher taxes than Americans." That's right, that's right. But even after paying high taxes, IKEA pays Swedish workers much higher wages than Virginia workers, and they also enjoy complete medical insurance, free university education and other benefits.
American companies believe that if they want to remain competitive in the global economy, they can't offer the same high wages and benefits as Swedes. However, according to the World Economic Forum, Sweden ranks second in the global competitiveness ranking, even higher than the United States. What's wrong with that?
What kind of economy do Americans prefer? There are many aspects to this problem. Let's take a look at a recent study. In a large sample group survey, questionnaires were provided to Americans in three hypothetical countries, asking them which country they prefer to live in. In the first category, the richest 20% population owns 20% of the country's total wealth (complete equality); The second category, the richest 20% of the population owns 35% of the wealth; In the third category of countries, the richest 20% of the population owns 80% of the wealth. Among the Americans surveyed, 4/5 Americans chose the second type of country, and almost as many people chose this answer as Republicans and Democrats; Among the remaining 1/5 choices, more Americans choose the first country than the third.
The first country is fictitious, and no country in the world is completely equal. However, the second category of countries represents the real situation-Sweden. The third kind of country represents another real situation-the United States. In the questionnaire about wealth distribution, Americans of almost all political factions chose Sweden instead of the United States!
In the previous generation, the income of Swedes was not as high as that of Americans. Of course, they will not regard the United States as a third world country. That was before the wealth of the American middle class was transferred to the pockets of the richest Americans. One of the results of American economy is the widening gap between the rich and the poor. In the past 10 years, although the productivity of American workers has been greatly improved, their median income has decreased. Whose pocket does the new wealth fall into? We will point out later that in recent years, American enterprises have made the biggest quarterly profits, which has caused the income of the richest Americans to soar.
The United States has experienced a worse situation: the Great Depression. During that period, Americans adopted new economics (macroeconomics), which was followed by new economic goals (full employment), new measures (gross national product), new policies (including bank supervision), and new systems such as social security system. After the Great Depression and World War II, the United States reduced the poverty rate, created the best education system in the world, and established the largest middle class in history. The average life expectancy and health status of the United States have become the envy of the whole world. Our high-wage economy provides jobs for the high-income middle class and a guaranteed retirement plan for all workers.
At that time, the United States created a successful economy in the 20th century, changed its economic goals and policies, better embodied the American concept, and realized the American demand for a more just and prosperous economy. However, more than a dozen countries are far better than the United States in health, education, economic security and other indicators.
We are no longer in the 20th century. The global oil reserves are getting less and less, and the climate is changing, which may bring disastrous consequences-that is, there are fewer and fewer useful water sources, but more and more floods. Different from the 1930s, roads and indoor pipelines are scarce, while forests, water and wetlands are abundant. Although the transportation is convenient and the roads extend in all directions, natural ecosystems and supporting services (such as flood control facilities) are becoming less and less and more precious. Neither our economy nor the standards for measuring economic progress reflect these realities. If we want to succeed in the 2 1 century, the economy must be sustainable and prosperous under the physical constraints of the earth and local natural ecosystems. This requires great changes in our economic situation, including energy, transportation, food and infrastructure construction.
Impressively, Americans have put forward solutions to every environmental and economic problem. However, only by transferring investment, improving and carefully determining the objectives of economic incentives, and reflecting the real costs and benefits in the market, can these solutions be truly implemented and a sustainable economy be realized.
About 30 years ago, the United States took a different economic road from most industrialized countries and revived the laissez-faire economism of the19th century-this view holds that government policies hindered economic development. This ideology includes relaxing control over the market, reducing taxes for the rich and reducing government services. After the financial crisis, we should also seriously consider the results of these changes and ask Americans again what they really want from the economy and how to achieve their goals. These are exactly what this book tries to explain.
The economic development of the United States has always been achieved through the individual efforts and joint efforts of the people. Personal efforts include improving personal ability, carefully considering the purchase decision and working hard. Personal efforts are very important, but many social and economic progress can only be achieved with the concerted efforts of people in Qi Xin. For example, women's right to vote depends not on individual efforts, but on the concerted efforts of all people, Qi Xin, to change the American Constitution. In addition, our economy is often regarded as an independent social sector, but in fact, if we separate economic problems from other problems, then we can't solve economic problems. 100 years ago, American progressives crossed the barriers of class, race and gender and worked together to win the right to vote for women, democratize the US Senate, standardize food and drug safety, establish progressive tax rates and eliminate child labor. They were able to achieve these goals because they broke through the narrow restrictions of self-interest and made unremitting efforts for the common well-being of Americans.
The two authors of this book believe that reform can make America more dynamic, more just and become a sustainable society. David, one of the authors of this book, is the executive director of geo-economic organization. He devoted himself to the determination, evaluation, planning and design of the economic benefits provided by nature to mankind all the year round. As an economist, he has been committed to improving real wages and banking policies in the United States and other countries. Another author, John, is the executive director of Take Back Your Time. As a producer of related documentaries, he has been advocating new standards for measuring happiness, trying to change American policies, such as implementing statutory paid vacations. However, any suggestion we put forward to improve the economy, environment or society has been equally criticized: what impact will this have on the economy?
"If you can get them to ask the wrong questions, then you don't have to worry about the answers." Thomas? Pynchon wrote in the Rainbow of Gravity. In our opinion, there is a question that should be more important than "what impact will this have on the economy", and that is: "What is the purpose of developing the economy?" About four years ago, John began to mention this problem in a series of lectures. This problem was quickly supported by the Rockefeller Brothers Foundation and developed into a sport, which became the curriculum of Washington University and Evergreen State University. After many speeches and student discussions, this view has become more perfect; At the same time, what is the purpose of developing economy? . Seeing that people are becoming more and more interested in this topic, we decided to write this book to explain our ideas in more detail.
main content
In the book, we raised a fundamental question and explored some answers that we thought were feasible.
In the first chapter, we study the main economic measurement index of the United States, namely GDP；; And pointed out its shortcomings-it can not accurately show the real economic operation mode. We question the economic goal: What should the economy provide for us? Is there more material products or something else?
In the second chapter, we give an answer, which was also suggested by a famous American a long time ago. In addition, Bhutan, a small country under the Himalayas, has also shown us different ways to measure social progress.
In the third chapter, we study the basic needs that each economic type should provide: how should we provide food, shelter and clothes?
In the fourth chapter, we analyze the American health care system, which is very important for a good quality of life. We spend a considerable proportion on medical care, but in some countries, the medical expenses are much less than ours, and the people's health is much better than ours. We raised questions about this and gave some answers.
The theme of the fifth chapter is social security. We have studied the phenomena of debt, unemployment, crime and retirement, and given some solutions in European countries.
In the sixth chapter, we find that most Americans live too fast and are pressed for time. However, time is the key to health and happiness. More leisure time can strengthen the ties between family and friends and create a stronger community. In the past, American workers had shorter working hours and longer holidays than workers in any other country. So, can we regain this advantage?
In chapter 7, we discussed the issue of fairness. Fairness and equality are crucial, and the gap between the rich and the poor in the United States has become the most serious among industrialized countries today.
In chapter 8, we study social mobility. It was once regarded as the birthright of Americans, but at present, the United States is not as good as other countries in this respect. What's wrong with the American education system? What can we do to make America a beacon for the world again?
In chapter 9, the theme we discuss is the sustainability of ecosystem, which is also the biggest economic challenge of this era. This chapter focuses on the impact of economy on environmental quality, and puts forward the methods and necessary policies to solve ecosystem problems.
Chapter 10 reviews the history, discusses the amazing development of American economy from 1900 to 1968, and explains how Americans opposed laissez-faire at the end of 19 and replaced it with brand-new policies. At the same time, it also standardized the market, established infrastructure construction, contributed to the emergence of the middle class and produced the most powerful mixed economy in the world. We can see that both the Democratic Party and communist party once supported this change until the old economic ideology re-emerged in a new form.
In chapter 1 1, we discussed the re-emergence of laissez-faire economy in the past 30 years and how it weakened the polarization between the American economy and the gap between the rich and the poor.
In chapter 12, we studied the recent financial crisis and its impact on American wealth and happiness. This chapter emphasizes how the wrong policy destroys the economy, and puts forward that we must make corresponding changes as soon as possible within our power.
In the last chapter, we summarized all the solutions, which can help us create a sustainable economy and bring happiness to all citizens.
summary
Let me explain here: this is a book, which presents the overall economic situation and economic policies from a macro perspective. This book outlines the general situation, but does not provide complete information about specific economic performance. Although there will be some exceptions to the situation we pointed out, we believe that the trends outlined in the book are broadly representative.
No matter how detailed this book is, it can't fully reflect the real situation. Therefore, we have not discussed some aspects, especially globalization. Globalization is the dominant factor in shaping modern economy, including American economy. The economic policy of the United States depends largely on the whole country, so we mainly focus on what Americans want from the economy.
One of the perfunctory answers to the question "What is the purpose of developing the economy" is "what the market provides". According to laissez-faire economists, the market provides people with everything they want, because they vote for what they want with money (although some voters cast billions of votes ...). We believe that the market is indispensable, and it also provides Americans with what they want from the economy, but not all. The more the market invades our life, the more likely it is to hinder us from achieving certain goals, the more likely it is to reduce our quality of life, and the more necessary it is for the government to strengthen supervision over the market. In the 2 1 century, successful economic policies need us to pay attention to the values of non-market economy, such as quality of life, fairness and sustainable development. We believe that the view that "an unconstrained market can meet basic needs, opportunities, sustainable development and all-round prosperity" is wrong-it is based on the wrong ideological system of19th century, which has not been proved, and it has been abandoned by Americans many times in the past century.
We try our best to keep up with the latest statistics, but they change quickly, especially during the crisis. For example, in 2005, the unemployment rate in France was almost twice that in the United States; By 2009, the unemployment rate in the two countries was almost the same. We are sure that readers will see some confusing data or facts in the book, but we believe that the general direction pointed out in the book is right, and the questions listed in the book are also questions that all of us should ask. We hope this book can inspire readers and make the economic construction of the United States more humane, dynamic, prosperous and sustainable.