The primary reason the USA is not as productive as Asia is due to family priorities, mainly education. Americans are to this day still thinking that the best investment they can make is in their home but the value of a home has not significantly moved up or down in overall value in 50 years, meaning your best investment may NOT be in your home. Also, if you watch American reality TV programs it too often shows people of questionable values, character and integrity living in big, fancy homes. Reality TV spreads these questionable values just like when ghetto children see the high school dropouts in their own neighborhood turn into thieves, robbers and drug dealers and, at least for a while, end up with all the money, clothes, cars and women.
The average American family puts 50% or more of their disposable income into their homes, energy, utilities and entertainment which includes gas, electricity, phones, computers and other such gadgets as well as recreation or hobbies like golf and boating. An average Asian middle class family only puts around 15% of their disposable income into these things but, moreover, puts 15% of their income into the education of their children while the same American family only puts around 2% of this income into the education of their children.
Fifty per cent of middle class Chinese families send their children to after school programs to learn the English language. How many American children are learning the Chinese language? Not that many by comparison. Most everyone agrees Chinese, not Spanish, is the most marketable language to learn in the 21st Century. Eighty per cent of middle class Korean families send their children to after school tutoring classes not because the children are struggling to learn but to learn more and it is paying off! For example, 30% of all the newly created high technology businesses started in America today are started by immigrants from China and India!
SUPPLEMENTAL SOURCE: MICHAEL MILKEN OF THE MILKEN INSTITUTE ON CNBC-TV SQUAWK BOX 3/23/11