American dream's demise caused by normal human behavior

July 7, 2013

Human behavior sinking America

I have spent much of the past few years trying to understand the causes of America's declining future.

While attending undergraduate and graduate business schools, I took a few courses in the social science called economics. As I recall, the fundamental underlying basis for economics is the belief all rational humans, when buying or selling, make most economic decisions based on what economists refer to as self-interest.

In other words, in every economic exchange, the principals on each side consciously or unconsciously ask themselves, what's best for me? What most humans don't often do is make economic decisions based on what's best for anyone else. For example, as consumers, we will usually choose to purchase the least costly product which satisfies our perceived needs...even if, as a side effect, our actions might eliminate jobs for other Americans. Those humans acting as suppliers will provide what consumer's purchasing actions show they want, also even if it costs American jobs. This does not make humans who behave this way wrong or bad...in economic terms it is predictable and normal human behavior.

If we apply this normal human behavior to America's current problems, it seems clear we have three different human constituencies, all behaving rationally in economic terms, who are responsible for our ever-worsening economy:

First, for decades, our individual federally elected leaders from both parties, in pursuing their self-interests, have increasingly succumbed to doing the bidding of the powerful special interests. They have mostly abandoned their responsibility for protecting the best interests of the majority of Americans, and instead, most from both parties, now do what is best for the wealthy special interests in exchange for the campaign funding needed to retain power by remaining in office.

Second, we have seen millions of American jobs transferred to lower cost labor markets, and even more are being lost daily to automation. This has been driven by the actions of individuals in charge of American-based companies seeking to satisfy their own self interests. Successful companies' leaders, owners, and even consumers of their products benefit. Who are the losers? Obviously, companies who fail to compete, and individuals who lost jobs. Adding to the pain, many workers, while fortunate to still have jobs, suffer from long term stagnant wages caused by a steadily increasing over-supply of labor. This stagnation in wages then stimulates consumers further to buy the least expensive products available. And the cycle goes on and on.

Third, American consumers, as mentioned earlier, are also responsible for our nation's poor economic condition. Daily, in rationally pursuing our own self-interests, we consistently choose to purchase low cost products made outside our nation. We generally make little effort to search for similar American made products, even though we know it might help fellow Americans keep their jobs.

Interestingly it's also the side-effects of this same normal human behavior which usually leads to the failure of Communism and Socialism. In these economic systems, individuals are expected to provide whatever level of labor they are capable of (from each according to their ability), and everyone then shares in economic output based on needs (to each according to their need). History has repeatedly shown, when humans stop being personally rewarded for giving their best efforts, most will stop doing so, and the system eventually fails due to wants exceeding production.

So, who's mainly to blame? Of course, all three groups share responsibility. However, of the three groups, only one consists of individuals who have taken an oath to serve the best interests of our nation and the vast majority of our citizens instead of their own. If an economy exists primarily to serve the best interests of a nation's citizens, and a government exists to do the same...who else can we really blame?

It should be clear to all, America did not end up in such deep trouble accidentally. Our nation's future is in great jeopardy primarily because the past few generations of the 536 we have elected, and who took individual oaths to govern for the best interests of all Americans, have failed miserably to live up to their responsibilities.

Frankly, I grow weary of repeatedly calling for firing all of them. It seems we are perpetually doomed to cling to our party labels and fight among ourselves instead of working together to find solutions. Those we elect to serve then play on this partisan anger and continue to collectively work for the same special interests. It seems to me the special interests and our politicians have the game figured out. Are most of us really just too dumb to get it?

These are my opinions. What do you think?

Mike Tower