Image by rony michaud from Pixabay
Updated Nov. 27, 2021 –
Robotics and other technologies in the gig economy have brought remarkable change. Too bad it hasn’t transformed politics.
“If you want something new, you have to stop doing something old,” Peter Drucker once admonished us. At the author of 39 books, the late Dr. Drucker, of course, was the world’s premier business philosopher.
But in Congress, too-few Republicans and Democrats, and business have heeded his simple advice.
Firstly, let’s consider business. With the long decline of former market stalwarts General Electric, General Motors and Proctor & Gamble, you might think the companies would have been quick to change.
For instance, during the Digital Age we’ve been seeing the emergence of artificial intelligence and robotics.
You might also think GE and GM would have been leaders in both. But no, they haven’t.
Meantime, the companies have fallen further behind the market capitalization of many other companies. Indeed, stocks jumped significantly despite the pandemic after the Donald Trump Presidency.
Certainly, the psychology of his policies on pro-growth tax reform, eliminating onerous business regulations and rebuilding the infrastructure along with strong earnings motivated investors. The stock market rose dramatically.
So much has been written about the growth of the stock market and U.S. economy during the era of Trumponomics. Growth had returned in the gross domestic product.
The economy seemed poised to achieve the high levels we haven’t enjoyed since President Reagan’s tenure in the 1980s. But sadly the Biden-Harris administration reversed the positive trend.
Looming economic disaster
As technology in automation has greatly impacted business, intellectual property has become increasingly important. Bricks and mortar are less important in the Digital Age. Amazon has become a dominant factor in B2C and B2B sales. Online banking is prevalent. Car dealer showrooms are affected by the Internet.
All of this means lower operational costs, which is why big businesses are making bigger profits. But inflation and Covid-19 have creamed small business.
Overall, until Joe Biden was elected, the U.S. economic forecasts were positive even with COVID-19.
But it won’t be a fait accompli if Democrats are successful in reversing tax reform and a corporate-tax cut. Inflation has skyrocketed with President Biden’s tax and spend philosophies.
He created a mountain of economic issues and in less than a year he’s already been deemed the worst president in U.S. history.
Most Independents and Republicans agree (Worse and worserer: New poll puts Biden approval at 37.8%, Harris at 27.8%).
More economic red flags
In reversing the improvements brought by Trumponomics, President Biden, his ilk, and many members in Congress seem unaware of Dr. Drucker’s common-sense warning.
Again, polls show President Biden’s proposals create fear for the nation’s economy. He has failed to keep all his campaign promises (Biden Promise Tracker | PolitiFact).
The Democrat-controlled House and Senate continue to waste time and pursue misguided ideas. President Biden’s dangerous socialistic policies and culture of entitlement threaten to spread.
Paying Americans to stay home and entitlements – food stamps, Medicaid, and Section 8 housing subsidies for physically fit adults without small children as well as Social Security disability benefits – consume nearly 60 percent of federal revenue.
Unless there’s a new cultural approach, it will only get worse.
Federal debt
With such recipients eligible to vote for such pork and fiscally irresponsible politicians, the federal debt is unsustainable. It continues to skyrocket every split-second:
The nation’s culture is declining. As a term, President Biden’s economic leadership, a misnomer and he has been disastrous for the U.S.
He needs to understand the psychology of Americans. Reforms of his policies are imperative.
Hence, the reminder: “If you want something new, you have to stop doing something old.”
From the Coach’s Corner, see these public-policy articles.
“Culture eats strategy for breakfast.”
-Peter Drucker
__________
