The Panthenon Investment Group

Let’s look at some foundational and basic facts about the USA

• Only 40% of the population has a basic degree or higher.
• Less than 30% of the population is skilled labor
• 18% of the population is above 65 and growing rapidly
• Manufacturing is barely 10% of the total GDP and less than 10% of the workforce is employed in manufacturing.
• Exports of goods are US$2Trillion or less than 8% of GDP
• While exports of services are US$1Trillion or 3% of GDP which leads the world significantly
• China is the second largest holder of US treasuries in the tune of US$800 billion.
• The USA is the country with the largest household consumption expenditure of US$18.8Bn, followed by the EU of US$9.8Bn and China at US$6.7Bn.
• 40% of Americans are OBESE!

What does all the above tell us?

The USA is the largest economy in the world for now, followed closely by China.  The USA is a matured, developed and ‘greying’ economy, whereas China is still growing strongly.

As a matured and developed country, the USA was smart in the past 50 years to move up the value-chain and engaged in high value-added manufacturing and relocating all low value, low end manufacturing offshore in developing countries.

Unfortunately, in the past 30 decades, the Americans did not keep pace with the economic maturity of the country.  There are far too many Americans who are illiterate, low skilled or now skill, how do you survive in a matured and developed country?

The education system is broken, and worse Trump is dismantling the Department of Education.

If you look at the Rust Belt or the Mid West, where towns and cities was once bustling with numerous manufacturing industries, are all now ‘ghost’ towns and cities, left behind by the progressive economic train.  Recently, I saw a few youtube videos where reporters were interviewing Americans in the Rust Belt and the Mid West.  One gentleman in his 30s, said his grandfather was a forklift driver, his father was a forklift driver and he himself was a forklift driver till the factory was closed and moved offshore.  Can you imagine, after three generations, nothing has changed???!!!  I mean shouldn’t this young man be educated or highly skilled and be relevant to the current US economy?!  No, he just wanted to continue to be a forklift driver!

With such a high percentage of illiterate, low skilled or unskilled Americans in the USA, this labor force is irrelevant to the USA of today and with minimum wage of US$13/- per hour, how can any low end, low value manufacturing survive?! Coupled with the fact that 1 in every 2.5 Americans are obese…….how are you going to hire these people to work in the factory???!!!

The structural and fundamental problems faced by the USA today are all self-inflicted, so Trumpy and gang stop blaming China and the rest of the world for your own mess.

Focus on rebuilding deteriorating infrastructure all over the country, boost education, ensure that young Americans either have a degree or a skill so that they can be relevant to the country and to themselves.

Capitalize on what you have an upper hand, that is, high end high value-added manufacturing in semiconductor, electronics and chips.  Schools and the government should work together to put programs and policies in place to continue feeding and nurturing innovation and inventions.

Enough of blaming others, if anything stand in front of the mirror, look at yourself and blame yourself……………WAKE UP AMERICA!