"THE DREAM IS STILL ALIVE"

     In a report issued on "social progress" in 1969, the U.S. Department of Health, Education and Welfare determined that, "the most obvious fact about American income is the highest in the world and rising rapidly. In terms of gross national product per capital-or any other measure of the average availabilityof goods and services in the United States far outranks its nearest competitors, that was then. What seen to be "most obvious" now is a generalized public concern about the economy's performance. While the average weekly earnings fell from $298 in the 1970's to $257 in the 90's in the 80's families had two cars, clothes dry clean and yearly vacations have increased considerably. In January 1996, Time/CNN poll taken 63 percent agreed with that statement that, "The American dream," has become impossible for most people to achieve. Yet, an equal number believed their children would enjoy a better future. Ambivalence about the nation's propertyis also felt in economic circles.  Foreign policy strategist Edward N. Luttwak, believes that, current policies are turning the United States into a third world country. But, Wall Street Journal editor Robert L. Barley, maintains that the American economy is healthy and will be more so in the technological frontier  ahead. I do not believe that, the U.S. economy is declining. It is just going through a period of technological change that affects manufacturing.  Luttwak, believes that America must reform its political and economic policies to avoid the on going social deterioration.  During the last two decades, American productivity has been losing ground in relation to the Japanese and European economies. If this trend continues, by the 2020 Europe and Japan will be producing two and six times more respectively than the United States. By then America will be to Japan what Brazil is to America today a third world country.  admittedly, this dire forecast can be misleading because Gross National Product figures are affected by unpredictable fluctuations in exchange rate. Comparisons of productivity among countries do not account for the real value of the dollar at home either, because exchange rate only reflects the supply and demand of countries. Disregarding the enormousnumber of transactions carried on at home. Even if the dollar purchasing power value is much higher than any one of them.  However, it is found comparisons based on exchange rate, and not on the currency's purchasing power value, which determine the productivity of a country, including its ability to be a buyer or seller in international trade. It is true that international comparisons are always inaccurate due to the difficulty of accounting for every good and service in a given economy. But, as reliable statistics indicate, the United States is going downhill to complete decadence.  The American economy is melting down because there is not money for investment. American save so little that money to revitalize competitive industries is almost non-existent. As a result, foreign products such as Japanese cars and electronics have taken in great part of the American market. Even the entertainment, biotechnology, and aircraft industries, for long the pride of American leadership, are being sold to Japanese and European investors. More pernicious, however, is the fact that this open-market policies are not bilateral. While the United States is ready to offer 40 percent of Douglas to Taiwan and 20 percent of Boeing to Japan. American investors are not allowed to acquire shares in these countries' most prestigious firms. It is true that foreign investment creates jobs that offsets those lost by imports, but, these jobs are the lowest in the hierarchy of corporations.  In the automobile industry, for instance, when foreign-owned plants replaced American ones, only the assembly workers and low range managers are employed, while American technicians engineers and corporate professionals are laid off.  Without asking in return for the same privileges, the government has allowed foreign companies to expand in the United States. In fact the government has contributed in several ways to spoil the American society. The government has placed so many regulations on industries that they are immigrating or selling off to other countries. It spent the nation's saving in "entitlement" programs, instead of providing this money to companies for capital investment.  The government has also allowed the loosing of disciplineand standards of education, so vital for a successful citizenry. Today, anyone can see the American decay in its shabby and unkempt international airports, in the poor service given by airline employees, and in impolite porters grumpily asking for tips. Social degeneration is even more pronounced in America's rundown buses and taxis, in its crumbling bridges and potholed highways and in its increasing number of slums and ghettos.  United States the power world need to reveal a better standard of living in the U.S., than Europe or Japan. United States have more land availability for a better living.  As the American economy renewed its growth in the early 1980's , foreign companies began investing heavily in the U.S. market. While several Japanese auto makers built plants in American soil, foreign investors increased their spending each year, reaching an staggering $229.8 billion by 1987. All these incoming capital in turn created a demand for exports that helped Europe come out of its economic slough. This global economical interdependence has been misinterpreted by proponents of an-American-in-decline. Who usually point out to the trade deficit as an index of American decadence. The reality is quite different, however. The American trade deficit cannot be analyzed independently, but as a part of an International economical cycle of trade and investment that stimulate each other. In other words, foreign investment provides the capital to finance a greater demand for goods. I believe, as Barley does, that the U.S. economy is going through a period of technological transition which gives the appearance of decline because part of its labor force has not cope with the new demandingyet.  Though the income of the median workers has fallen and trade and budget deficits have risen, the American standard of living keeps improving thanks to technological advances. The standard of living of today's worker is more demanding, however, as it includes expensive medical insurance, child care and college tuition. some of the reasons for increased consumption, regardless of low income. The greater number of women contributing to the family's income, and the almost normal small family pattern.  But, these new trends do not ameliorate the temporary burden placed by technological changes on a portion of the low and middle classes. Because of the American economy size, the trade deficit and foreign investment have little effect on the majority of jobs and incomes.  They do have an indirect effect on productivity, as imports supply cheap products, generate competition, and allow U.S. companies to focus in more advanced technological development. In fact, as modern technology cuts on prices of services and products, it provides the leading edge in economy growth and productivity, but, does not necessarily creates new jobs. This is going through a revolutionary technological change, in which old production is being left primarily to foreign competitors, while U.S. companies are realigning to exploit the advantages of the information age. During the process millions of workers have been burdened, but, have also enjoyed a better standard of living thanks to the fruits of advanced technology.