The Future of U.S.'s Economy

In This Article:

- Why scientific & engineering research is vital for the future well being of our nation's economy
- Science R&D+Sustainability=Innovation+Economic Stability

With emerging markets developing more and more momentum, the economical leadership role of the United States are at stake. Headlines like "Is America loosing its technological edge?" appear not only in boulevard media. So, the questions are 2-fold: (a) Is it really that bad? And (b) if so, what can we do about it? For the first question,  some pessimists might say, that the number patents of foreign investors are dramatically increasing alongside with a more and more international mix of graduates at U.S.'s top universities. 

In addition, a recent article in IEEE Spectrum showed that many other countries, including emerging ones, start to develop a wider technology innovation portfolio. To answer question (a), the U.S.  is spending more on R&D than it's next 4 runners up combined - thus we are certainly not neglecting the importance of R&D investment, but given the national debt some parties are tempted to close the R&D-'valve' which is comparable to switching off the fuel supply on a airplane over the Atlantic ocean. However, the real question is whether the U.S. is capitalizing on those R&D investments in a proper way? 

Or in other words: are we innovating in the 'right' direction towards creating the most future  economical stability? Looking at the funding agenda's of our nations national institutions (DOE, DOD, NSF, NIH ...) we do clearly see future-directed and technological leadership promising investments, as they are in: Energy Independence (renewable energies, smart lightning, efficiency increases), Cyber Security (reducing cyber attack risks), Clean and smart Transportation (personal independence with a 'green' mindset), Superior Data-Communication (Fiber-optics and broadband internet). Interestingly, many of these technologies have a connotation of Sustainability in it. 

Efficiency = Sustainability?!

A McKinsey article earlier this year (click here for the link) reported that in order to growth an economy in the 21st century, that about 70% of such growth must come from becoming more efficient in their operations, while only 30% growth can be gained from 'putting more workers to the problem'. Interestingly this is exactly mirrored by developing nations which are able to growth by reinforcing their man-(and women)-power. Thus, efficiency is high on the list for a economical future. But using less water, less electricity, becoming more efficient in logistics & recycling resources etc. not only save some dollars, but are also early indicators that Sustainability is THE KEY for the 21st century. On that same token, I am pleased to see that early adopter school's like the University of Arizona are offering a new major in Sustainability by opening the first School of Sustainability in the Nation.  

In conclusion, we see sustainable living, and running businesses & nations in a sustainable way are mandatory towards ensuring our nation's healthy economy in the future, since increased efficiency and sustainability go hand-in-hand. In light of this, the DOE stands clearly out; many funding programs are in line with high-tech R&D towards sustainable technologies, creating patents, high-taxpaying jobs and a future economy. Great job Steven Chu!     

What have the current Financial Debt Crisis and Sustainability in common?

In This Article:
- How we can measure our Ecological Footprints
- Why we should NOT spend more than our natural bank-statement allows  

   
If you don't have a TV, like me then you might use Netflix to satisfy your desire for motion pictures. The  documentary "The Ecological Footprint: Accounting for a Small Planet", I recently saw uses an interesting approach towards Sustainability, which is the key word for this blog.

  

Interestingly, Sustainability and Ecology are topics which are pretty big on the higher-education wish list for many university and college in the country this year, so we know this sustainability thing must be important somehow. But how and why? The immediate answer would be - because there is something to have try knowledge, interested students, innovative technology and engineering, and maybe even a business model. And this is were the documentary comes in. In a nutshell the idea is to use accounting or business tools to quantify the ecological footprint of our world, nations, or even you and me. So, basically what they did is, to make a balance sheet with contrasting Ecological Demand on the one side and Ecological Supply on the other. 

Being a  Ecological Creditor 

Here they compared the areas needed to supply us humans with whatever we want and need, such as for growing crops, grazing animals, harvesting fish, settlements, timber areas to absorbing CO2. The result? Well, starting with the US, the area needed to supply every american (on average) to live like we do is about 9.5 football fields. So how much football fields are there per person in the US? About 4.9. Thus, on average we are living twice in excess to what we should, giving our national resources. 

And this is where the financial part comes in. Basically this "ecological footprint" can be compared to a bank account. Say, if you spend more money than you have in your bank account what happens? Well, first of all probably nothing much, because you use all your credit cards and borrow yourself some $$$. Over time however, you will get into some serious trouble, not only financially. It is a no-brainer that such a debt-heavy lifestyle is financially and ecologically not sustainable. So, the punchline is, if we spend more of natures' assets than there are available on our 'bank statements', we are sooner or later will have a problem - it's that simple. Within this context it is interesting to notice how not only modest living Mr. Smith got into financial trouble, but also large banks and even entire countries. Funny, how studied and extremely knowledgeable people are able to run-down our assets with such 'success'.        

Here's another analogy: imagine you are in a sailboat in the pacific ocean. You prepared for this journey, so you packed food, water etc. Out here in the open waters cut-off from any more supply you very quickly think about the amount of supply you have an start to value what you have.   

So, let me ask you:
What would you change to take less from nature?