US Economic dominance
The United States has enjoyed a prolonged period of market dominance versus international markets. An examination of the driving forces behind this success reveals a lifestyle deeply rooted in the pursuit of work and wealth creation. While this focus has undoubtedly propelled the nation to unprecedented economic heights, there’s an inherent trade-off that often goes unnoticed — the potential compromise of overall quality of life.
The US continues to show declines in studies on life expectancy and quality of life versus other developed nations.This begs the question, can we “have our cake and eat it too?”
In other words, can the US continue its dominance as an economic powerhouse, while simultaneously working to improve overall quality of life? I believe the answer to this question is yes.
The Work Ethic and Wealth Creation
The American Dream has long been synonymous with hard work, determination, and the pursuit of financial success. The relentless work ethic embedded in the cultural fabric has fueled innovation, economic growth, and the creation of powerful corporations. This commitment to wealth creation has not only shaped the business landscape, but has also contributed significantly to the outperformance of US stock markets.
The drive to accumulate wealth has led to the development of a robust entrepreneurial ecosystem, attracting talent from around the world. Individuals are encouraged to take risks, start businesses, and strive for financial success. This mentality has undeniably contributed to the economic prosperity of the nation, as reflected in the soaring valuations of American companies on the stock market.
THE COST OF SUCCESS
However, the relentless pursuit of economic success comes at a cost, and this cost is often reflected in the overall quality of life. In the quest for wealth creation, the United States has sacrificed elements that contribute to a higher quality of life, such as leisure time, family, and community engagement. The high-stakes, high-stress nature of the business environment can result in a society where individuals are constantly striving for more, potentially neglecting their mental and physical health along the way. The emphasis on long work hours and career advancement can lead to burnout, stress, and a constant tension between trying to find the ever elusive balance between work and life.
The negative impact of this “burnout culture” is evidenced by a rise in cases of chronic disease and a declining life expectancy in the US versus other developed countries. Data from the CDC shows that six in ten US adults currently live with at least one chronic disease and four in ten US adults have at least two chronic diseases. Chronic disease is one of the leading causes of death and disability and as of 2021 CDC data, the US was spending about $4.3 trillion annually on health care costs. This equated to $12,914 per person on healthcare spending.
To put that into perspective, the average global household income worldwide is only estimated at $12,235 per year. This means the US spends more per person on healthcare costs than the entire household income for the average household worldwide.
Balancing Prosperity and Quality of Life
As the United States navigates the delicate balance between economic success and quality of life, there’s a growing recognition that a more holistic approach is needed. Especially post COVID, many companies are reevaluating their approach to employee well-being, emphasizing flexible work arrangements, mental health support, and a focus on work-life balance.
In the pursuit of a more balanced lifestyle, there is an increasing acknowledgment that prosperity should not be measured solely in monetary terms. The concept of well-being encompasses not just financial success, but also factors like personal happiness, health, and social connections. Recognizing the importance of these elements is crucial for ensuring that economic success does not come at the expense of overall life satisfaction.
While the outperformance of US stock markets is clearly linked to a culture that prioritizes work and wealth creation, it is essential to reflect on the potential drawbacks of this singular focus. Striking a balance between economic success and quality of life is an ongoing challenge that requires a reevaluation of societal values and priorities. As our nation continues to navigate the complexities of a rapidly evolving global economy, the pursuit of a more holistic approach to business that encompasses both economic prosperity and well-being will be crucial for sustaining long-term success. This doesn’t mean a lower work ethic or determination, it just means a reframing of the metrics we use to define success
If you want a fascinating example of where this multi-pronged approach has been woven into the fabric of a company from its inception, here is a link to the Founder’s podcast episode on Brunello Cucinelli. The company has become both an economic powerhouse in the fashion industry, while simultaneously revitalizing the town of Solomeo, Italy, where it is headquartered.