Being of the Baby Boomer generation, I remember when America was the uncontested economic beacon of opportunity and power in the world. Back in the 1950’s and 1960’s, good jobs were plentiful and companies proudly toted their “Made in the USA” tags. Millions of independent farmers provided Americans and the world with an abundant source of healthy food, and small businesses played a key role in driving that economic engine. Unemployment was very low, our good health was almost taken for granted, and even immigration was welcomed. Yes, life was good.
So what happened? Why have we now become a second rate economy? Could it be all about the “deal”?
Sure, we can lay blame upon the rise of the fast food industry, which saw the corn incentives promoted by the government during WW2 and thanks to their lobbyists, still subsidized to this day. They created a factory system controlled by a select group of companies which eventually swallowed up almost every independent farmer, and ensured a never ending flow of cheap foods filled with fats, sugar and calories. A fast food burger is much cheaper than broccoli.
Or we can point our fingers at Walmart, the mega retailer who took on the giants Sears and K-Mart and whose favorite slogan in the 1980’s was “made with pride in the USA”. When Deng Xiao Peng opened the door to foreign investment and a market economy in the Peoples Republic of China, Walmart jumped in and started a massive exodus among American business seeking cheap labor. Millions of jobs were lost to China, (where our trade deficit now surpasses $270 billion), and the trends towards outsourcing spread to many other developing nations which were eager to provide the jobs at a quarter of the cost.
And of course, if we’re pointing fingers, we can’t forget about our own government. Supporting trade agreements which help multi-national companies keep their profits and stockholders happy, while forcing millions of field workers in Mexico and other Latin American countries out of work, seeking jobs outside of their home countries or in illicit activities.
Yes, there have been many stories of corporate greed and influence which have negatively impacted our country since those glory days, and correspondingly, even our environment and social systems have suffered. However, when we take a closer look, who is truly to blame?
Look in the mirror. Yes, it’s us. Unless we were born with the proverbial "silver spoon", from the time we were little, we have been trained to search out the “best deal”. Competition is generally good, but we now have built a mentality that paying “full price” is a fool’s game. Think about it. Deals pervade our media. Whether on TV, newspapers, websites, social media, text messaging, or whatever new technology comes along. There’s even a sense of pride and competitiveness among shoppers (and we are all shoppers) to find it “cheaper”.
The demand for cheap goods has created economic havoc here in the US, which is now a “service economy”. Most people have little idea what that actually means. Suffice it to say, that our once fully independent economic model is now almost totally dependent on products produced in other countries. Combine this dependence with new technologies constantly being developed and implemented, the trend is for fewer job opportunities. Not quite the American dream envisioned by our forefathers.
Unseen by American consumers seeking a deal, are the social, health and environmental costs. Here in the U.S., millions are still unemployed. Due to this persistent unemployment crisis, tax revenues are dramatically down, which has elicited a cascading effect of budgetary cuts, causing even more layoffs, and more people, many without health insurance, eating cheaper fast foods. Our health system, while perhaps the world’s most technologically advanced, is now rated 38th in the world by the World Health Organization, behind Ethiopia. Obesity and other health issues related to poor diet continue to increase dramatically.
These negative effects extend far beyond our borders. In order to meet our demand for cheap goods, millions of children, some as young as 4, are now working in factories around the world. Forests and land areas are being “clear-cut” by multi-national companies, such as the palm oil industry, which has created unsustainable mono-cultures by eliminating all native flora and fauna while usurping lands of indigenous peoples. Giant factory fishing fleets, led by the Japanese, travel the world’s oceans, sucking up every living organism in their paths, whether edible or not, leaving nothing behind. Due to the environmental degradation, entire villages of people have lost their means to support their families, and many have turned to criminal activities. Witness the rise of the infamous Somali pirates which started out as a group of fishermen whose source of food had been decimated by these foreign fleets.
Our obsession with the deal has fueled the world’s fastest growing company, Groupon. Growing from a modest 32 employees in 2008 to over 8,000 today, this company has built an extremely successful business formula on encouraging and offering deep discounts from merchants. Great revenues for Groupon, and great deals for consumers. But not always so for the merchants who are just trying to survive.
I guess that’s the point. In every great deal, there’s someone paying well more than full price. Hey, as long as it's not us...oh, wait.
Author:
Keith Winn - Chief Visionary Officer
Greater Good Alliance
A freshly steeped pot of environmental and social responsibility is calling your name.