Sadly, our polarized political atmosphere prevents the country from dealing with important issues such as immigration, infrastructure spending and coming up with appropriate trade policies.

The United States is the world’s wealthiest country, with a gross domestic product of around $19 trillion. GDP, the best way to measure our economy, is the value of all the finished goods and services produced within a country’s borders in a specific time. Since World War II, the U.S. economy has grown at over 2 percent per year.

But we need to emphasize that there is a difference between overall national wealth and per capita wealth and we need to encourage policies that enhance personal prosperity. In a few years, China’s GDP is likely to surpass America’s. But China’s per capita income remains low, with the average Chinese citizen’s income ranking around 100th in the world. I applaud the Trump tax plan and the administration’s efforts to reduce regulations. I do believe that these actions contributed to our economy’s growth of 4.2 percent in the second quarter. That said, I agree with the U.S. Chamber of Commerce, which recently launched a campaign opposing the Trump policies that might engender a trade war. Chamber president Tom Donohue said: “The administration is threatening to undermine the economic progress it worked so hard to achieve. We should seek free and fair trade, but this is just not the way to do it.”

In order for the country to continue to prosper, we need to recognize that prosperity is not self-sustaining. We must apply on-going measures to keep our economy growing. Governments are crucial for establishing the economic incentives and institutions that encourage innovation without letting the individual entrepreneur and/or corporations inhibit the rights of others to enjoy life, liberty and property.

For much of human history, economic wealth stagnated and most of the population lived in poverty. Around 1800, because of the Industrial Revolution, countries and their citizens experienced rising levels of prosperity. Industrialization marked a shift to powered, special-purpose machinery factories and mass production, freeing people from low-skill drudgery and making factories much more efficient.

The computer, the internet, robotics and smartphones have stimulated growth and spawned new business enterprises and further enhanced productivity.

Countries can increase per capita income in four ways:

• Eliminate counterproductive policies.

• Expand opportunities for commercial activity.

• Increase capital investment.

• Support technological innovation.

The Trump tax cut has encouraged companies to increase capital investment. This promotes greater productivity per worker, in turn causing wages to rise. Most economists feel that technological innovation is responsible for 60 to 85 percent of growth. Innovation requires talent, risking-taking and successful entrepreneurship resulting in significant rewards. How does globalization boost prosperity? Globalization is the cluster of technological, economic and political innovations that have drastically reduced barriers to the exchange of goods, services and ideas across borders.

Globalization also:

• Lowers trade barriers, allowing national economies to focus on sectors in which they retain a comparative advantage, thus increasing productivity.

• Allows capital to reach the places where it will earn the highest rate of return.

• Expands the size of the market, giving companies greater incentive and economies of scale to take risks and make vital investments in new inventions and innovations.

• Promotes economic interdependence.

The Trump administration’s trade policies inhibit globalization and will retard economic growth.

We are currently experiencing a very strong economy with very low unemployment. Our shortage of skilled workers and our aging population hamper long-term growth prospects. To address this shortcoming, we need to both improve our domestic learning centers as well as open up our immigration quotas for applicants who possess the skills we need.

Lastly, we need to get the federal budget under control. To me, it is the elephant in the room.

Originally published in the Sarasota Herald-Tribune