Some notes from the chapter “Why Are So Many People Out of Work?” We all have reasons or suspicions about the above question. Some of my opinions such as the raising of GDP in the emerging countries, I believe, have a substantial impact on the effect of manufacturing in the U.S. in particular. However, as we continue to innovate hopefully and move our IT efforts forward in the manufacturing area as well as our entire economy, we will see significant progress in our wealth creation and stay comfortably ahead of other countries. Some interesting quotes from this chapter:
From page 49:
“The more that an endeavor requires inference about the mind state of others, the more the intelligent machines will require human aid. We humans do have our talents.”
From page 53:
“But for men, from 1969 to 2009, as measured, it appears that wages for the typical or median male earner have fallen by about 28 percent. I’ve seen attempts to dispute these numbers, but the result remains embarrassing: Brookings Institution researcher Scott Winship, for instance, argues that since 1969 the truth is that male wages have fallen by “only” 9 percent. That’s still a dismal record.”
And finally from page 59:
Some of the catches on why it will be difficult for laid-off workers to find these lower-paying jobs.
“A lot of those jobs are being created overseas. If the job does not require high and complex capital investment, the advantage to keeping that job in the United States is lower.”
A lot of Americans are not ready to take such jobs, either financially or psychologically. They have been conditioned to expect “jobs in the middle,” precisely the area that is falling away.”
“Through law and regulation, the United States is increasing the cost of hiring, whether it be mandated health benefits, risk of lawsuits, or higher minimum wages.”
I believe all the above information from the book is correct and it is imperative for us to move at warp speed to minimize the number of low-paying jobs in the United States through education, credentialing and future innovation.