America, the Dream Lost

America, the Dream Lost

Les Aaron

If you probe into what’s happening on the economic front, you will find some stuff that will not only turn your stomach, it will force you to face some hard truths!...It will change the way you view an American economic juggernaut.

All of us have grown up believing that America is the place where all our dreams can come true. That America provides work and freedom for all those it embraces. And of course, we all know that America is first in this and first in that. Well, if anyone still believes that, it may be time to take another look at America, the bold marketer, the dashing innovator in the year 2005. ...

Consider our supposedly cutting-edge technology. .When our government is more concerned with biblical prophecy than keeping the American dream alive, you can bet that our edge is going to get dull in a hurry! At the same time, the “other guys” in Europe, China and Japan are looking more and more like the Energizer bunny!

But don’t stop there, take a look at most sectors that define where America stands in the global marketplace.

In the past, the US had more engineers than all of Europe combined and three times as many as all of Asia, these ratios are changing not slowly as one might think but almost geometrically. For example, in China alone, more than 10 engineers graduate for every one that we graduate and those kind of statistics are changing the balance of power through-out the world. .

What does this suggest?

It suggests that the market for engineers and technicians is strong --something that we should be paying attention to if we intend to continue to seriously compete in the world market. And, maybe more importantly, create good, decent paying jobs here at home.

But that observation only skims the surface. Anyone interested in seriously plumbing the reasons for our economic decline might want to explore a number of factors. Among them, the fall off in new product introductions. The truth is that while we are becoming the leader in “retailing,” the products are not made here but elsewhere. The truth is that many ideas that germinate here are being developed, licensed and marketed overseas by foreign interests who have purchased American technology.

Why?

In the spate of mergers, acquisitions and take-overs in the 90’s, we’ve discovered that many companies we think of as having American roots, have changed their loyalties. Many, in actuality, are really based overseas with policies and decision-making coming from abroad. And those inventions, ideas, new products that could make a difference are increasingly finding that the only way they can see the light of day is to get manufactured overseas. The reason? Of the remaining domestic companies, few want to incur the risk that taking a product from the concept stage through manufacturing. Nor do they do not want to invest the capital for long term investments other than backing what is perceived to be a sure winner.

For example, consider fuzzy logic, mag/lev two terrific ideas that have broad application were created in the US. Fuzzy logic in San Francisco; mag/lev at Brookhaven laboratory on long Island. Here's the downside: The engineers and scientists behind these products were unable to interest domestic companies in developing and marketing these products; consequently, they turned to overseas investors. As a result, this country lost the benefit of developing these ideas, manufacturing the equipment needed to utilize them and the profits that could have been derived from marketing them around the world. Does that sound like the kind of America that we once knew? Hell, no! America is no longer about risk-taking or commitment, increasingly its about big bonuses to CEO’s who don’t perform and strategies and tactics that don’t incur risk. Shareholders are not interested in long term investments, only the here and now.

This tendency is not new but it is characteristic of a kind of economic malaise; an unwillingness to do what is necessary in order to compete on the world stage; it is much easier to license or to have others do the ‘heavy lifting’ required.

. Many of the new ideas marketed in the world were developed in national institutions like our colleges and universities as opposed to small corporate labs.. Unfortunately, the universities, always seeking new sources of capital, are now making these research institutions available to manufacturers—including, get this, foreign based ones-- on an exclusive basis. So, rather than tinker around in order to come up with some great idea to solve the world’s ills; these institutions talents are being used to focus on specific problems and not even those of our own home-based manufacturers.

The loss to pure research is stunning but the implications are seldom reported on. Moreover, what the institutions uncover as fruits of their own explorations and discoveries financed by taxpayer funds to a great extent, the benefits of that research is now also available to any company that subscribes to their services, domestic or overseas.

For example, at Rutgers advanced ceramic lab, foreign companies subscribed to the results of the research developed there for as little as $125 a year!.... That’s like having the best US researchers working exclusively for you where you have no commitment or loyalty to this country. Again, another nail in the coffin of America’s long term economic well-being.

What's even worse is that these institutions receive tax monies from the US government as subsidies to supporting foreign exploitation of ideas developed here. Crazy when you consider how we are cannibalizing our own economic futures. But as a consultant to business and industry, I know that it does not end here. As a result of working with entrepreneurs, I discovered that government did not support US cases of theft of American ideas and for the most part, foreign entrepreneurs know that they can steal ideas indiscriminately and get away with it. The US government will not invest one iota of effort in helping small business America survive!


In the present government, there is a particular disillusionment with the benefits of science and technology that has spilled over from the extremist right wing orientation of many of our leaders in government. Our failing efforts in stem cell research and other pioneering technologies has caused us to fall behind the scientific research of other countries where there are no such restrictions. This is the cutting edge and whether we like it or not, America is losing out on the research that will define the products of tomorrow.

It seems that the prevailing trend is that American industry would prefer to license than invest millions or incur risk in doing what is necessary to put this country on a competitive basis.

To exacerbate America’s economic losses, over the last twenty years, many of America's economic power houses have sold out to foreign companies which has resulted in vital technology and know how moving overseas--along with the resulting profits.

What is particularly mind-bending is that this kind of behavior is being encouraged by power granted to the Executive allowing “special arrangements” and “relationships” to be formed through NAFTA and Fast Track that open our markets
to foreign development while ceding growth jobs in information and technology overseas. What could our leaders be thinking?


One of the few barometers of performance and long term economic health has to be the number of patents applied for. Since the break-up of AT&T, America has submitted fewer and fewer applications for patent or patent-pending. This is perceived to be a continuing trend and indicative of the country’s economic health and vibrancy. And who really cares? Certainly not enough to do anything about it.

While this is only one yardstick, it is a telling one and taken along with the attitude of government to science and technology, the shrinking number of engineering and science graduates and the tendency to downplay risk, Americans who are concerned about the economic viability of this country need to stand up and be counted. What more telling indicator do we need than the fact that we no longer have a machine tool industry in the US; that to manufacture products, we would have to import machine tools from abroad.

If that doesn’t get you thinking, check out our leading export to China this year, a country we run a monthly deficit with approaching 60 billion dollars. The leading export? Scrap Those products that once helped America stand out are now melted down and sold as scrap and used to manufacture televisions and washing machines sold back to us by powers like China.

What’s wrong with this picture?

What’s wrong is the fact that the American dream as we know it is in serious jeopardy and its time we all woke up to that fact and told our leaders that we are not going to take it anymore.



Les Aaron
Armchair Curmudgeon.

Visit my Blog: http://lesaaron.blogspot.com/