Real Estate Macroed

Most people understand a lot more about real estate than they do about money. In America, most people's biggest asset is their home. Of course, we take for granted favorable government policies towards home ownership: the mortgage interest deduction, FHA loans for first time buyers, and even the recent refinance options for homeowners due to the financial crisis. But step back from short term events and fluctuations and look at our land from a historical standpoint. The United States of America controls one of the most valuable tracts of land in human history. This value is evident in multiple ways: strategically, agriculturally, economically, and politically.

The United States of America comprises of 3.54 million square miles. Subtract Alaska and Hawaii from the total and the lower 48 have nearly 2.96 million square miles. In perspective, the lower 48 are very near the size of the continent of Australia. A few states in the U.S. are larger than many countries – for example, Texas is larger than France, Oregon is slightly larger than the United Kingdom, and including all 50 states, the United States is only 400,000 square miles smaller than all of Europe. Furthermore, the average population density of the lower 48 is 107 per sq. mile and is actually lower than the world's average of 120. All of this being said, we have room to grow here. Our population is generally moving south and west – away from the original states towards the more undeveloped west.

Tangent – we are not the original owners of this land. We stole it from the Indians shortly after discovery of the continent by Europeans. We can make many arguments for or against this as a benefit to the world, but we still need to acknowledge that we stole the land from those who are native to the land. That doesn't make us unique on this planet – humans have been stealing land from each other for a long time, especially those peoples originating in Europe. I'm also not making recommendations on what, if anything, to do about it. But we as Americans do need to acknowledge this not so proud fact of our history here.

Strategic security is a major benefit of our geography. We split North America with only 2 neighbors, and we occupy the territory between them with the most temperate climate. Our northern border is a frozen tundra in the winter, and our southern border is an inhospitable desert in the summer. Both are defensible with an observation force – a limited number of people can respond quickly to problem spots when necessary. To our east and west, enormous oceans with only a few islands to pay attention to militarily. We have not fought a war on our own soil in 150 years, and even that was an internal conflict and not one with an outside aggressor. Indeed, the last time a foreign power had troops on our soil was during our war with Britain and Canada, 200 years ago.

With our military technology and outlying territory in Hawaii and Alaska, we would have ample warning to prepare for any potential invasion from a foreign power. Combine that with the most armed general public in modern history, there is an extremely low chance that any foreign power could forcibly enter the lower 48 (sorry AK and HI) and take land by force. We really take this for granted, and in my opinion this is an advantage we should guard jealously. Our strategic security has prevented devastating wars that have torn apart economic capabilities on three other continents in the last century. Strong security allows our civilian population to worry about the other strengths our land has.

Our fertile land is perhaps the most valuable on the planet. We have 8 states that border the largest freshwater lakes on the planet, and 31 states in the watershed of the continent's largest river. Other sources of fresh water abound, and we generally do not have to worry about finding and using water. The climate is very conducive to consistent crop yields, and we have settled enough farmland to feed our population twice over. This matters – not only are we safe at home in our beds, our bellies are full and we never thirst. I say this generally of course. And I say it in comparison with not only the rest of the modern world but with the rest of history.

The land is so fertile that we've started to figure out what to do with all of the excess grain. We even made a law requiring the inefficient process of turning corn into fuel for vehicles. We aren't worried about getting a meal, but worried about what that meal will consist of. I recently saw a report that Americans meat of choice is now chicken instead of beef. Would that the rest of the world could be so fortunate to get to choose

On top of that, our land has many valuable things BESIDES farming capability. The United States is abundant with natural resources, and we have become very good at taking them from the earth and using them for economic benefit. We have innovated many new industries in part because we have the ability to get raw materials cheaply and easily. We have a diversified economy with the most productive workforce on the planet.

Our economic strength is related to our politics – we've established the freest large society in human history, and it is possible to flourish economically here. It is possible to buy almost anything that humanity has created in our stores and markets. Our laws, generally, are enforced so people don't steal things from others and get away with it. We have consistent systems of weights and measures to ensure we get what we pay for, and a system of checking consumed goods to make sure we don't get sick from them. Indeed, we enjoy most of the comforts of modern life without giving a second thought to where they come from or where they go when we're through with them.

One could even say we are TOO comfortable. With productivity as high as it is, we don't even require all of our population to work in order to accomplish what we need to meet our basic needs. The last 5 years have brought this problem to the forefront. We have so much efficiency in our economy that we don't need a great deal of manual labor in order to accomplish the work we want to accomplish. This problem will need to be addressed in a way that allows those able bodied adults to be able to find gainful employment and contribute to our society.

This article is meant to highlight the macroeconomic strengths of the real estate of “America.” We continue to be the oldest country on the planet with a consistent government. We should not only be thankful for this fortune but take steps in order to protect its value.