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World Is Flat: A Brief History of the Twenty-first Century Review
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Friedman
provides an excellent summary of recent changes that have created today's intense
global economy. However, his conclusion that this is good for the U.S. - based
on anecdotal evidence supplied by outsourcing supporters - is dead wrong. Broader
data show massive deterioration in U.S. workers' healthcare and pension coverage,
and opportunities to use and develop higher-level skills (eg. software, engineering,
production management, technical skills). The most recent data even show a decline
in inflation-adjusted incomes. Meanwhile, the areas being outsourced continues
to grow to now include tutors, and drug trials. Friedman observes that Asian competitors
are quick learners, moving up the "food chain" from simple production managed
by Americans to designing new sophisticated equipment and parts and then manufacturing
them under local management. What he fails to note is that sooner or later they
will also take over total control and financing - leaving only U.S. distribution
to Americans. Thus, most of those that now support outsourcing will eventually
find themselves also outsourced. Friedman does have a recommendation for America
in the "flattened world" - substantially improve education and pupil achievement.
Unfortunately, even if accomplished (30+ years of reform efforts have yet to come
close), it would be of little help. Experts have concluded that Oriental IQs generally
average 10 points higher than those of Americans. China alone has about four times
the U.S. population, and then there's India, Pakistan, South America, etc. - earning
as little as 5% of what Americans bring in. Meanwhile, eg. the number of U.S.
computer science students is DECLINING - as a result of unemployment caused by
outsourcing. In addition, American corporations are hobbled by having to pay high
healthcare costs, vs. other nations' much lower costs - largely born by government.
And finally there are the government restrictions on genetic research that American
firms are hobbled with - possibly precluding significant participation in a potentially
booming new area. If the preceding examples do not set off alarm bells, there's
always the latest news that the brightest Indian immigrants in the U.S. are now
starting to return to India. At the same time, the volume of those coming here
is declining - reportedly because of "better opportunities" in India. Meanwhile,
improved technology and reliability acerbate the job problem by further reducing
opportunities. Clearly the mathematics are against us and the inevitable result
is that our standard of living is headed for a substantial fall - unless some
other solution is found. Rome, Spain, and England proved that a nation's strength
is not permanent. Friedman summarized the factors eroding America's - unfortunately,
he failed to look clearly into the future or to find a solution. And those should
be America's main concerns.
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