Brian Wesbury, Chief Economist at First Trust, noted that members of the elite press are telling the people that they had better get used to slow growth. That economic growth actually kills people.
Two weekend articles, in major US newspapers, left us shaking our heads. The Washington Post wrote that “economic growth actually kills people,” while The Wall Street Journal published a piece saying, ironically, we should get used to slow growth – it’s normal.
Both are ridiculous.
First, The Washington Post cited statistical studies that blame premature death on economic growth (more pollution, more work and more risk).
The statisticians found that pollution and alcohol were the #1 and #2 causes of death as economic growth accelerated. We couldn’t help but think about the Soviet Union, where pollution and alcoholism were rampant in the 1970s and 1980s, but economic growth was non-existent. Economic growth does not cause pollution; to say it does is a red herring. The air in Boston was much worse in the 1800s when wood-burning fireplaces were used to heat homes. Public health was a serious problem before sewage systems and water purification.
The articles in the Post and the Wall Street Journal try to make the case that Americans need to forget about growth. Rather, the government should focus on making the social safety net bigger, on rule-making, and making everyone more “equal.” In fact, we are told that growth is a killer.
Evidence of the opposite exists. Stagnating wages and loss of jobs in this country has been followed by alcoholism and rampant use of heavy-duty drugs like heroin, leading to an increase in premature deaths in America’s heartland.
There is no reason why the American economic engine cannot be revved up to the benefit of all.
Roughly 70% of the US economy depends on consumer spending. The return of good paying jobs to communities thoroughly the country would result in a significant surge of economic growth. And by good paying jobs we are not referring to the jobs created by the internet economy on the East or West Coasts. The jobs produced by companies like Google, Facebook, Twitter and other Internet based “infotainment” companies produce great wealth for their creators but no actual consumer product. What has surprised many economists – but should not have – is that they have not produced nearly the number of jobs that were predicted. Meanwhile, industries that produce actual goods that people need to live – food, clothing, housing, fuel, medicine, cars – industries that once produced good paying jobs – are being outsourced or automated.
The country needs to focus on this issue or face increasing unrest among people who feel disrespected and marginalized. Reviving American industries – in America – can be the spark that leads to a better future for everyone.