Say goodbye to more jobs
March 16, 2004 11:38 PM Subscribe
Say goodbye to more jobs? This is an interesting research report from the Gartner Group on the future of banking, money and economic transition. One of the participants at a conference that Gartner cites is Bernard Leitaer, who is interviewed here. Leitaer is the author of the book The Future of Money. He argues " the malaise Japan has suffered since the early 1990s reflects an economic challenge the whole developed world has begun to face. Today, European and U.S. factories, too, suffer from overcapacity. The vaunted productivity growth spurred by the digital revolution has raised the economy’s stall speed. If the natural growth rate of the U.S. economy has risen to 4% annually, anything less than that rate will cause firms to trim capacity. A firm’s revenue growth often must come at the expense of competitors as well as its own profits because companies have trouble raising prices. In response, companies cut costs any way they can, usually by laying off employees and squeezing suppliers, which causes further layoffs. For developed countries, the safety valves that limited damage during contractions in manufacturing may not work. In past recessions, laid-off factory workers in the Great Lakes states, for example, could migrate to the growing Sun Belt to find new jobs. In the present transition, areas with job growth may lie overseas." The long heralded rise of the information economy, the death of distance and the rise of the global knowledge workers is paradigm shift that our goverment leader's seem ill equiped to handle.
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