knowledge economy

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pages: 268 words: 75,490

The Knowledge Economy by Roberto Mangabeira Unger

additive manufacturing, balance sheet recession, business cycle, collective bargaining, commoditize, deindustrialization, disruptive innovation, first-past-the-post, full employment, global value chain, information asymmetry, knowledge economy, market fundamentalism, means of production, Paul Samuelson, savings glut, secular stagnation, side project, total factor productivity, transaction costs, union organizing, wealth creators

THE KNOWLEDGE ECONOMY THE KNOWLEDGE ECONOMY Roberto Mangabeira Unger First published in English by Verso 2019 © Roberto Mangabeira Unger 2019 All rights reserved The moral rights of the author have been asserted 1 3 5 7 9 10 8 6 4 2 Verso UK: 6 Meard Street, London W1F 0EG US: 20 Jay Street, Suite 1010, Brooklyn, NY 11201 versobooks.com Verso is the imprint of New Left Books ISBN-13: 978-1-78873-497-4 ISBN-13: 978-1-78873-500-1 (US EBK) ISBN-13: 978-1-78873-499-8 (UK EBK) British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data A catalog record for this book is available from the Library of Congress Typeset in Minion Pro by Hewer Text UK Ltd, Edinburgh Printed in the US by Maple Press Contents 1.The Most Advanced Practice of Production 2.The Knowledge Economy: Its Characteristics Described at the Level of Management and Production Engineering 3.The Deep Structure of the Knowledge Economy: Relaxing or Reversing the Constraint of Diminishing Marginal Returns 4.The Deep Structure of the Knowledge Economy: Production, Imagination, and Cooperation 5.The Deep Structure of the Knowledge Economy: Trust, Discretion, and the Moral Culture of Production 6.The Confinement of the Knowledge Economy: The Fact and the Riddle 7.Pseudo-Vanguardism and Hyper-Insularity 8.Precarious Employment 9.The Confinement of the Knowledge Economy: The Consequences for Economic Stagnation and Inequality 10.The Confinement of the Knowledge Economy: The Beginning of an Explanation 11.Making the Knowledge Economy Inclusive: The Cognitive-Educational Requirements 12.Making the Knowledge Economy Inclusive: The Social-Moral Requirements 13.Making the Knowledge Economy Inclusive: The Legal-Institutional Requirements 14.Background Incitements: Generalized Experimentalism and High-Energy Democracy 15.Inclusive Vanguardism and the Dilemma of Economic Development 16.Inclusive Vanguardism and the Political Economy of the Rich Countries 17.Growth, Crisis, and Successive Breakthroughs of the Constraints on Supply and Demand: The Larger Economic Meaning of Inclusive Vanguardism The enigma of supply and demand Contrast to Keynes’s teaching The spectrum of breakthroughs in the constraints on demand The spectrum of breakthroughs in the constraints on supply 18.Economics and the Knowledge Economy The imperative of structural vision The large-scale history of social and economic thought: truncating and evading structural vision Reckoning with post-marginalist economics: the disconnection between theory and empiricism Reckoning with post-marginalist economics: the deficit of institutional imagination Reckoning with post-marginalist economics: the theory of production subordinated to the theory of exchange Reckoning with post-marginalist economics: the lack of an account of the diversity of the material from which competitive selection selects Uses and limits of Keynes’s heresy Uses and limits of the example provided by pre-marginalist economics Two ways to develop the needed ideas: from within the established economics and from outside it 19.The Higher Purpose of the Inclusive Knowledge Economy Index 1.

Many have suggested that the knowledge economy might be associated with increasing returns to scale and have seen cause for the vindication of this conjecture in particular features of this practice of production. Some such suggestions focus on an advantage enjoyed by part of the knowledge economy: the near-zero marginal cost of adding another customer to the user community of a platform business. These proposals fail to explain how other parts of the knowledge economy, with no such advantage, could share in the experience of increasing returns to scale. They are at best claims about a particular segment of the knowledge economy. Other suggestions emphasize the positive externalities generated by the insights, skills, and staff on which the firms of the knowledge economy depend. These firms are producers as well as consumers of practical knowledge.

Nevertheless, their self-deception during wartime may have served them well in the short term by inducing them to cooperate across class lines that they were unwilling or unable to see. The moral background to the knowledge economy is not just a circumstance that is either present or absent, and in either event beyond the reach of deliberate action and programmatic intent. Where this background is missing, collective action can create it. 6. The Confinement of the Knowledge Economy: The Fact and the Riddle Throughout the world the knowledge economy remains restricted to insular vanguards: advanced manufacturing, knowledge-intensive services (often associated with advanced manufacturing), and precision, scientific agriculture. Even as the knowledge economy has lost its exclusive association with industry, it has remained, in each sector, a fringe. It is true that the boundary separating the knowledge economy from the rest of the production system always remains porous.


pages: 550 words: 124,073

Democracy and Prosperity: Reinventing Capitalism Through a Turbulent Century by Torben Iversen, David Soskice

Andrei Shleifer, assortative mating, augmented reality, barriers to entry, Bretton Woods, business cycle, capital controls, Capital in the Twenty-First Century by Thomas Piketty, central bank independence, centre right, cleantech, cloud computing, collateralized debt obligation, collective bargaining, colonial rule, corporate governance, Credit Default Swap, credit default swaps / collateralized debt obligations, deindustrialization, deskilling, Donald Trump, first-past-the-post, full employment, Gini coefficient, hiring and firing, implied volatility, income inequality, industrial cluster, inflation targeting, invisible hand, knowledge economy, labor-force participation, liberal capitalism, low skilled workers, low-wage service sector, means of production, mittelstand, Network effects, New Economic Geography, new economy, New Urbanism, non-tariff barriers, Occupy movement, offshore financial centre, open borders, open economy, passive investing, precariat, race to the bottom, rent-seeking, RFID, road to serfdom, Robert Bork, Robert Gordon, Silicon Valley, smart cities, speech recognition, The Future of Employment, The Great Moderation, The Rise and Fall of American Growth, too big to fail, trade liberalization, union organizing, urban decay, Washington Consensus, winner-take-all economy, working-age population, World Values Survey, young professional, zero-sum game

The shift did not originate with business or unions or think tanks or the intelligentsia—it originated with broad electoral discontent with the stagnation of the French economy and the emergence of a political entrepreneur with a message of hope, reform, and economic progress (in contrast to Le Pen). 4.5. The Socioeconomic Construction of the Knowledge Economy In this section we move from the macropolitical level to the microlevel of production and social organization and show in greater detail how the knowledge economy has been constructed from bottom-up. We will concentrate on the formation of skill-clusters, which are the backbone of the new knowledge economy, and will show how these clusters have been formed around decentralized social and economic networks, which are concentrated in the advancing cities with few linkages to small towns or rural areas. 4.5.1 CHANGING SKILL SETS Fundamental to our analysis of the development of the knowledge economy, as well as to the reactive development of populism, has been the dramatic changes in skill sets described in the previous sections.

By this token, when some families are blocked from experiencing upward mobility they tend to react politically against the system, which we see as the root cause of populism. For reasons we will spell out below (and in detail in chapters 3–5), the transition to the knowledge economy has produced blockages, and this raises the question of whether populism is a threat to advanced democracy.10 We think not. The reasons are discussed in detail in chapter 5, but the most fundamental in our view is that those benefiting from the knowledge economy have an obvious incentive to make sure that a solid majority will continue to feel included in, and benefit from, the knowledge economy in the future. That said, we do not want to minimize the challenges of potentially creating a large left-behind minority who feel alienated from society and democratic institutions. Even if populist parties will never attain majority status, populist appeals could prove a destabilizing force in democracy (as they arguably have in the United States and in Britain), and we do not want to underestimate the social costs of large minorities losing hope in the future and turning to drugs or crime as a consequence.

The 1980s was the starting gun for a series of reforms that ended up greatly benefiting the advanced sectors and the knowledge economy in general. We discuss these reforms in detail in the next chapter. What is critical to note here is that advanced capitalism has always been underpinned by political support from an educated majority of the electorate. Under Fordism, that core consisted of high school graduates and a substantial number of workers with additional vocational training—in some countries involving multiyear school- and/or firm-based training. In the knowledge economy the core has shifted to those with college degrees, with a continued role played in some countries by those with long vocational degrees and firm training. The industrial working class was by no means to be excluded from the advanced sectors of the knowledge economy, since many of the children of formerly industrial workers were part of what we will see was the massive rise in participation in higher education starting in the 1980s.


pages: 209 words: 80,086

The Global Auction: The Broken Promises of Education, Jobs, and Incomes by Phillip Brown, Hugh Lauder, David Ashton

active measures, affirmative action, barriers to entry, Branko Milanovic, BRICs, business process, business process outsourcing, call centre, collective bargaining, corporate governance, creative destruction, credit crunch, David Ricardo: comparative advantage, deindustrialization, deskilling, disruptive innovation, Frederick Winslow Taylor, full employment, future of work, glass ceiling, global supply chain, immigration reform, income inequality, industrial cluster, industrial robot, intangible asset, job automation, Joseph Schumpeter, knowledge economy, knowledge worker, low skilled workers, manufacturing employment, market bubble, market design, neoliberal agenda, new economy, Paul Samuelson, pensions crisis, post-industrial society, profit maximization, purchasing power parity, QWERTY keyboard, race to the bottom, Richard Florida, Ronald Reagan, shared worldview, shareholder value, Silicon Valley, sovereign wealth fund, stem cell, The Bell Curve by Richard Herrnstein and Charles Murray, The Wealth of Nations by Adam Smith, Thomas L Friedman, trade liberalization, transaction costs, trickle-down economics, winner-take-all economy, working poor, zero-sum game

In America, the rhetoric of learning is earning led to the view that it does not matter what is studied because interesting and well-paid jobs were available across the economy. But no matter how a knowledge economy is defined, it is difficult to produce an account that does not include the centrality of science and technology, given that these are major fields of innovation. If America has been engaged in an act of “unilateral educational disarmament,” it stems from large numbers of students attracted to celebrity careers and the lure of big prizewinners at the top of industries like 36 The Global Auction finance, law, business, fashion, and the media. This has been reinforced by proponents of the knowledge economy who portrayed manufacturing as part of yesterday’s economy, overtaken by knowledge economy jobs in financial services and other creative industries. In response, talented students turned their backs on what are viewed as less exciting or financially rewarding careers in science, technology, engineering, or math (STEM subjects).

Max Weber observed what he called the “routinization of charisma” and the prospects of an “iron cage” of bureaucracy, and Steven Brint has argued that the rhetoric of the knowledge economy is ahistorical: “Many years in the future, we shall see the same standardization in the computer software industry that a previous generation witnessed in the insurance and automobile industries.” Steven Brint, “Professionals and the ‘Knowledge Economy’: Rethinking the Theory of Post Industrial Society,” Current Sociology, 49, no. 4 (2001): 116. See Werner Holzl and Andreas Reinstaller, The Babbage Principle after Evolutionary Economics, MERIT-Infonomics Research Memorandum Series, Maastricht, the Netherlands. http://edocs.ub.unimaas.nl/loader/file.asp?id=812 Barbro I. Anell and Timothy L. Wilson, “Prescripts: Creating Competitive Advantage in the Knowledge Economy,” Competitiveness Review, 12, no. 1: 26–37. Holzl and Reinstaller, The Babbage Principle, 14.

Hence, the tenets of neoliberalism encouraged people to believe that welfare support introduced in the 1950s and 1960s was misguided because it rewarded failure and feckless behavior, whereas free markets offered a fair and efficient system where talent and hard work would be appropriately rewarded. As a result, the fate of individuals and families became heavily reliant on maintaining, if not increasing, the market value of their knowledge, skills, and credentials. Jobs and rewards would flow to individuals able to upgrade their skills to meet the competitive conditions of the knowledge economy, where opportunities were assumed to expand as the economy relied on new ideas, technologies, and innovations. Since the 1980s, politicians and opinion leaders, whether Republican or Democrat, continued to present the future economy as a world 4 The Global Auction of smart people doing smart things in smart ways. It is a world of new opportunities for creative talent and prosperity for American workers and families based on faith in the market to deliver the middle-class dream.


Fortunes of Change: The Rise of the Liberal Rich and the Remaking of America by David Callahan

affirmative action, Albert Einstein, American Legislative Exchange Council, automated trading system, Bernie Sanders, Bonfire of the Vanities, carbon footprint, carried interest, clean water, corporate social responsibility, David Brooks, demographic transition, desegregation, don't be evil, Donald Trump, Douglas Engelbart, Douglas Engelbart, Edward Thorp, financial deregulation, financial independence, global village, Gordon Gekko, greed is good, high net worth, income inequality, Irwin Jacobs: Qualcomm, Jeff Bezos, John Markoff, Kickstarter, knowledge economy, knowledge worker, Marc Andreessen, Mark Zuckerberg, market fundamentalism, medical malpractice, mega-rich, Mitch Kapor, Naomi Klein, NetJets, new economy, offshore financial centre, Peter Thiel, plutocrats, Plutocrats, profit maximization, quantitative trading / quantitative finance, Ralph Nader, Renaissance Technologies, Richard Florida, Robert Bork, rolodex, Ronald Reagan, school vouchers, short selling, Silicon Valley, Social Responsibility of Business Is to Increase Its Profits, stem cell, Steve Ballmer, Steve Jobs, unpaid internship, Upton Sinclair, Vanguard fund, War on Poverty, working poor, World Values Survey

The educated wealthy are apt to be cultural liberals not only because of the tolerance associated with education, but also because of the milieus in which they live. These views can trump financial concerns. More important, though, people who get rich in a knowledge economy are likely to c01.indd 30 5/11/10 6:17:21 AM educated, rich, and liberal 31 have a nuanced view of their financial self-interests. They may be focused less on which party is going to boost their bank accounts next year with a tax cut and more on which will spur long-term growth in their sectors. By this measure, liberal Democrat politicians who want to spend more money—a lot more—bolstering the foundations of the knowledge economy can look pretty appealing. A Wall Street Journal article, noting the political shifts at the top, commented in 2009 that Democrats need to get used to being “the party of the rich.”

Shaw, 36–37, 38, 39 Dimon, Jamie, 54–55 Doerr, John, 80, 188, 189 DreamWorks, 2, 168, 171 eBay, 106, 144, 182, 188 EcoManor, 63 5/11/10 6:28:39 AM index economic considerations crashes, 44, 159, 257, 270 economic populism, 31–32 failure of the free market, 163, 164 foreign debt, 107, 108, 116 global economy, 115, 116, 163 Obama stimulus plan, 31, 47 See also finance industry; knowledge economy Edey, Marion, 71–72, 76, 77 education and corporate America, 219 cultural diversity in, 26, 236–239 essential to opportunity, 41, 282 Gates’s activities, 24, 94, 138, 161, 279, 288 grants and fellowships, 89, 207 and the high-tech industry, 189–190 liberalism in private schools, 4, 30, 71, 191, 235–250, 252, 284 and postmaterialism, 27–28 as predictor of voting behavior, 26–27, 191 public school system, 94–95, 288 role in the knowledge economy, 23–27, 37 social responsibility taught in schools, 230–231 Edwards, John, 12, 45, 144, 201, 232 Ellison, Larry, 24, 104, 194 Emerging Democratic Majority, The (Judis and Teixeira), 27 Emily’s List, 149, 198 energy industry, 43, 58, 67, 69, 73, 80, 189.

Still, it is crucial to recognize a paradox: wealthy liberals have emerged as a larger force in political life, even as they have remained a small minority of their class and affluent voters overall have backed the Republican Party. As political scientist Larry Bartels reminds us, “traditional class politics is alive and well.”6 Yet although rich liberals remain a small minority of their class, their ranks are growing—along with their influence. This shift reflects the changing sources of wealth creation, with the rise of the knowledge economy and what Richard Florida calls the “creative class.” People who already trend liberal—like super-educated coastal professionals—make up an ever larger slice of the rich. Most of the big money is being made these days in blue states, not in red states. There are other trends at work, too, such as rising pressures on the upper class and corporations to become more socially responsible; the growing liberalism of elite schools where the rich and the future rich are educated; the cintro.indd 4 5/11/10 6:29:10 AM introduction 5 radicalization of the Republican Party; and the changing priorities of longtime wealthy people who are turning their focus away from making money to solving social or global problems.


pages: 239 words: 45,926

As the Future Catches You: How Genomics & Other Forces Are Changing Your Work, Health & Wealth by Juan Enriquez

Albert Einstein, Berlin Wall, bioinformatics, borderless world, British Empire, Buckminster Fuller, business cycle, creative destruction, double helix, global village, half of the world's population has never made a phone call, Howard Rheingold, Jeff Bezos, Joseph Schumpeter, Kevin Kelly, knowledge economy, more computing power than Apollo, new economy, personalized medicine, purchasing power parity, Ray Kurzweil, Richard Feynman, Robert Metcalfe, Search for Extraterrestrial Intelligence, SETI@home, Silicon Valley, spice trade, stem cell, the new new thing

Meanwhile, back in Myanmar (formerly Burma) … Anyone owning a PC without government approval … Gets 15 years in prison … Just one of the reasons why … A country with one and a half times as many people as Canada … Did not produce a single U.S. patent in 1999. Because of the knowledge economy … And the emphasis on human rights … Real, and virtual, migration is growing. Worldwide, the number of people living in a country different from where they were born … Has doubled since 1965. In Western Europe and North America … Almost 10 percent of the population is foreign-born … Many are refugees … But many are also the best, brightest, and most entrepreneurial … Who continue concentrating in a few spots.1 Many of those wishing to work in the United States … Can now do so freely … Without a visa … or visits from the INS. In a manufacturing economy … You had to travel to the factory and put things together … Or process paper at a specific desk. In a knowledge economy … You can work at your desk … In your home … In a hotel … In a plane … Which is why more than a quarter of U.S. workers are now part-time, independent, or temps.

THE DOMINANT LANGUAGE … AND ECONOMIC DRIVER … OF THIS CENTURY … IS GOING TO BE GENETICS. Those who remain illiterate in this language … Won’t understand the force making the single biggest difference in their lives. Many countries and companies just don’t get it. They continue to invest primarily in stuff they can see and touch… Even though two-thirds of the global economy … Is already a knowledge economy. They do not invest in, or attract, smart people who are science-literate. They do not get particularly concerned as many of their brightest leave. They forget … You need ever fewer people, time, or capital … To build a nation … Become an economic superpower … Wage war effectively … Or launch a global business. But you do need technology-literate people. Lack of technology literacy … Is one of the reasons the gap between the richest and the poorest countries in the world is growing so quickly … Why there is a 390:1 gap.

Most European and Latin American fortunes are not based on high tech … They are inherited … (Although a few heirs have grown the companies significantly.) Seven out of the ten richest Europeans are what Forbes calls “coupon clippers” … (That is, they are not involved on a daily basis with building up their companies.) RICHEST EUROPEANS AND LATIN AMERICANS17 (estimated wealth in billions of dollars) The United States’ ability to attract the world’s best brains and the shift toward a knowledge economy create rapid shifts. In 1990, not one of the world’s ten wealthiest individuals was American … In 2000, six out often were American. MUCH OF THE WORLD’S NEW WEALTH IS CREATED BY KNOWLEDGE … BUT MOST OF THE WORLD’S POPULATION STILL WORKS IN BUSINESSES OR ENDEAVORS THAT PRODUCE, ASSEMBLE, OR SELL COMMODITIES … SO THE GAP BETWEEN THOSE WHO ARE TECHNOLOGY-LITERATE AND THOSE WHO ARE NOT COULD EASILY WIDEN AS RESEARCH AND DEVELOPMENT ACCELERATES.


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The Entrepreneurial State: Debunking Public vs. Private Sector Myths by Mariana Mazzucato

"Robert Solow", Apple II, banking crisis, barriers to entry, Bretton Woods, business cycle, California gold rush, call centre, carbon footprint, Carmen Reinhart, cleantech, computer age, creative destruction, credit crunch, David Ricardo: comparative advantage, demand response, deskilling, endogenous growth, energy security, energy transition, eurozone crisis, everywhere but in the productivity statistics, Financial Instability Hypothesis, full employment, G4S, Growth in a Time of Debt, Hyman Minsky, incomplete markets, information retrieval, intangible asset, invisible hand, Joseph Schumpeter, Kenneth Rogoff, Kickstarter, knowledge economy, knowledge worker, natural language processing, new economy, offshore financial centre, Philip Mirowski, popular electronics, profit maximization, Ralph Nader, renewable energy credits, rent-seeking, ride hailing / ride sharing, risk tolerance, shareholder value, Silicon Valley, Silicon Valley ideology, smart grid, Steve Jobs, Steve Wozniak, The Wealth of Nations by Adam Smith, Tim Cook: Apple, too big to fail, total factor productivity, trickle-down economics, Washington Consensus, William Shockley: the traitorous eight

In fact, the development of the biotech industry in the US is a direct product of the key role of the government in leading the development of the knowledge base that has thus provided firm success and the overall growth of the biotech industry. As Vallas, Kleinman and Biscotti (2009, 66) eloquently summarize: …the knowledge economy did not spontaneously emerge from the bottom up, but was prompted by a top-down stealth industrial policy; government and industry leaders simultaneously advocated government intervention to foster the development of the biotechnology industry and argued hypocritically that government should ‘let the free market work’. As this quote indicates, not only was this knowledge economy guided by government, but, strikingly, it was done as the leaders of industry were on the one hand privately demanding government intervention to facilitate the industry’s development, and on the other hand publicly declaring their support for a free market.

Patrick 97 Medical Research Council (MRC) 20, 67 Merrick, Sarah 125 meso perspective 36 micro–macro connection 31–2 microprocessors 109 Ministry for Research and Technology (Germany) 149 Ministry of International Trade and Industry (MITI) 37–8, 40; see also Japan Minsky, Hyman 32n3 Minuteman II missile programme 98 Miranda, Javier 45 Mirowski, Philip 49 MIT 24, 178, 178n6 Mitterrand, François 57 Motoyama, Yasuyuki 83–4, 85 Mowery, David C. 61–2 multi-touch screens 102 myths: about business investment requirements 53–5; about entrepreneurship and innovation 22; about innovation and growth 10; of Europe’s problem being commercialization 48, 52–3; government captured by 19; of innovation being about R&D 44, 159–60; of knowledge economy and patents 50–52; of market as self-regulating 30, 195; of small is beautiful 45–7, 142, 160–61; of venture capital as risk loving 47–50, 142 Nanda, Ramana 127 NASDAQ 50 National Academy of Sciences (NAS) (US) 176 National Aeronautics and Space Agency (NASA) (US) 98, 145, 150 National Endowment for Science, Technology and the Arts (NESTA) (UK) 45 National Fabricated Products 150n4 National Institute of Standards and Technology (NIST) (US) 107, 108 National Institutes of Health (NIH) (US): applied research by 136; budgets of 1938–2011 69, 70; creating the wave vs. surfing it 68–71; knowledge base funded by 8; NMEs based on research of 66; spending 25; Taxol royalties 188 ‘national market’ 195 National Nanotechnology Initiative (NNI) (US) 84–6 National Organization for Rare Disorders 82 National Renewable Energy Laboratory (NREL) 151 National Science Foundation (US) 20, 84, 85, 104, 108, 166 National Systems of Innovation perspective 42 NAVSTAR GPS system 105, 109 Nelson, Richard 193 neoclassical economics 33, 186 Netherlands 51, 54 networks: DARPA’s development of 77, 83; innovation 36, 40, 74; linkages of 39; in nontechnologies 83–4; SBIR building of 79, 83; science—industry links 193 New Deal 74 New Economy Business Model (NEBM) 168–9, 172, 177; see also Old Economy Business Model (OEBM) ‘new growth’ theory 34–6, 44, 59–60 new investment in renewable energy 120, 121 Nielsen, Kristian H. 145 Nokia 190 ‘No More Solyndra’s Act’ 130–31n12 Norway 120n4, 121 Novartis 81 Noyce, Robert 98 OECD, GERD (gross domestic expenditure on R&D) as a percentage of GDP in 43 Office of Science and Technology Policy (OSTP) (US) 109 oil company role in solar power 161n8 Old Economy Business Model (OEBM) 168–9, 177; see also New Economy Business Model (NEBM) Organisation for Economic Cooperation and Development (OECD) 18 organizational change 197 Orphan Drug Act (ODA) of 1983 81–2 Osborne, George 51 outsourcing 16, 108 Pacific Solar 152 Parker, Rachel 83–5 Parris, Stuart 44 patents: First Solar’s 151; focus on venture capital and 49; GE’s lead in 148; in knowledge economy 10; myth of knowledge economy and 50–52; ‘patent box’ policy 51–2; pharmaceutical 66; potential government retention of 189; success of as measure of innovation performance 34, 41 Perez, Carlota 117 Perkins, Thomas 57 Pfizer 8, 26, 69, 82 pharmaceutical companies (‘pharma’): funding development of 10, 17, 24; growth from R&D in 44; radical vs. ‘me too’ drugs 64–7; R&D expenditure by 25–6, 25n1, 64–6, 65; risk–reward relationship of 12, 181, 188; share buybacks by 25–7; see also Big Pharma; drugs; individual companies pharmaceutical industry: agencies of 64; percentages of new drugs by types 66; socialization of risk and privatization of rewards in 12, 181, 188; see also biotech Pharmaceutical Research and Manufacturers of America (PhRMA) 65, 66 ‘picking winners’: argument against 116; avoiding appearance of 85; ‘free market’ warnings about 111; ideology resulting from failure to 146; as inappropriate agenda 29, 187; lead R&D role vs. 134; losers picking the State vs. 18–21; MITI’s industrial policy as beyond 38 Pisano, Gary P. 49 Polanyi, Karl 8, 30, 193–4 policymakers: focus on R&D and patents 41; green revolution options 117; growth fostered by 34; need to seek collaboration by 24; need to understand new technology 75; suggested focus for 194 Portugal 52 President’s Committee of Advisors on Science and Technology (PCAST) (US) 84 private debt 17 private sector: demand side policy assumptions about 115; entering green revolution 119; entrepreneurial activity of 20; financialization 25–8; lack of vision in 21–2; limitations 84–5; parasitic potential of 23; shorttermist approach of 108; see also venture capital private vs. social returns 3–4, 179 procurement policies 111, 111n14 production function framework 34–5 Production in the Innovation Economy (PIE) project 178–9, 178n6 productivity 32, 45–6, 64 public debt 17–18 public good 7, 21, 57, 139, 179, 195 Public Interest Research Centre (UK) 121 public policy: see policymakers public–private: collaborations 5, 6, 24; funding of clean energy 154–5, 162; overlap 136; R&D investment 166 public sector: see State Q-Cells 157 Rao, Rekha 44 Rauch, James 4 RCA 172 R&D: Apple’s global sales/R&D ratios 92–3; biotech subsidies 81; Chinese wind technology 149–50; of clean technology sector 26; by DARPA 75, 134; by DoE 132; EU targets 41; firm growth relationship to 44; funding sources for basic research in US 61; funding sources in US 60, 60–61, 60n2 (see also individual US agencies); GERD (gross domestic expenditure on R&D) as a percentage of GDP in OECD 43; impact of tax credits on 28; investments 4; in Japan vs.

Losers Picking the State Beyond Market Failures and System Failures The Bumpy Risk Landscape Symbiotic vs. Parasitic Innovation ‘Ecosystems’ Financialization Chapter 2: Technology, Innovation and Growth Technology and Growth From Market Failures to System Failures Myths about Drivers of Innovation and Ineffective Innovation Policy Myth 1: Innovation is about R&D Myth 2: Small is Beautiful Myth 3: Venture Capital is Risk Loving Myth 4: We Live in a Knowledge Economy – Just Look at all the Patents! Myth 5: Europe’s Problem is all about Commercialization Myth 6: Business Investment Requires ‘Less Tax and Red Tape’ Chapter 3: Risk-Taking State: From ‘De-risking’ to ‘Bring It On!’ What Type of Risk? State Leading in Radical (Risky) Innovation Pharmaceuticals: Radical vs. ‘Me Too’ Drugs Biotechnology: Public Leader, Private Laggard The National Institutes of Health: Creating the Wave vs.


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Head, Hand, Heart: Why Intelligence Is Over-Rewarded, Manual Workers Matter, and Caregivers Deserve More Respect by David Goodhart

active measures, Airbnb, Albert Einstein, assortative mating, basic income, Berlin Wall, Bernie Sanders, big-box store, Boris Johnson, Branko Milanovic, British Empire, call centre, Cass Sunstein, central bank independence, centre right, computer age, corporate social responsibility, COVID-19, Covid-19, David Attenborough, David Brooks, deglobalization, deindustrialization, delayed gratification, desegregation, deskilling, different worldview, Donald Trump, Elon Musk, Etonian, Fall of the Berlin Wall, Flynn Effect, Frederick Winslow Taylor, future of work, gender pay gap, gig economy, glass ceiling, illegal immigration, income inequality, James Hargreaves, James Watt: steam engine, Jeff Bezos, job automation, job satisfaction, John Maynard Keynes: Economic Possibilities for our Grandchildren, knowledge economy, knowledge worker, labour market flexibility, longitudinal study, low skilled workers, Mark Zuckerberg, mass immigration, new economy, Nicholas Carr, oil shock, pattern recognition, Peter Thiel, pink-collar, post-industrial society, post-materialism, postindustrial economy, precariat, reshoring, Richard Florida, Scientific racism, Skype, social intelligence, spinning jenny, Steven Pinker, superintelligent machines, The Bell Curve by Richard Herrnstein and Charles Murray, The Rise and Fall of American Growth, Thorstein Veblen, twin studies, Tyler Cowen: Great Stagnation, universal basic income, upwardly mobile, wages for housework, winner-take-all economy, women in the workforce, young professional

As the report says: “A range of back-office functions to be automated, include financial reporting, accounting, actuarial sciences, insurance claims processing, credit scoring, loan approval, and tax calculation. Computer algorithms and ‘robotic process automation’ can drastically reduce the time and manpower devoted to these activities.”41 Capitalism in the Age of Robots What does all this mean? The knowledge economy needs fewer knowledge workers than expected. The recent expansion of higher education in much of the West will stop or even go into reverse as the demand for the middling and lower-rung jobs of the knowledge economy will decline. And companies, partly out of bitter experience, will place less confidence in the signaling effect of a degree, even from a good university, and revert to offering more apprenticeships, including degree apprenticeships, to capable high school graduates. This is already happening in several big employers and appears to be more than a fad.

., 166 Bloodworth, James, The Myth of Meritocracy, 75 Bloomsbury Group, 53 Botton, Oli de, 300 Bovens, Mark, Democracy (with Wille), 95, 155–58, 169, 177–78 Boys Smith, Nicholas, 288–89 Breen, Richard, 81 Brexit Britain: alienation and, 276 Anywhere-Somewhere divide, 12–20, 287–88 immigration policy and, 168, 169 job status decline and, 213–14 pushback against cognitive class, 10, 32, 154–55, 160–61, 164–66, 185–86, 213–14 British Cohort Study (1970), 76 British Red Cross, 222–23 British Social Attitudes (BSA) survey, 140, 209–10, 212, 219, 226n, 230 Brooks, David, 276 Brown, Gordon, 25, 174 Brown, Phillip, The Global Auction (with Lauder and Ashton), 23, 144, 258–60 Brown, Tara Tiger, 195–96 Building Beautiful Commission, 289 Bukodi, Erzsébet, 75–76 Bunting, Madeleine, Labours of Love, 27, 217, 225, 227, 233, 246 Burt, Cyril, 100 Butler, Joseph, The Analogy of Religion, 42 Byng, John, 52 Cameron, David, 156, 170 Campbell, Rosie, 171–72 Caplan, Bryan, The Case Against Education, 123, 129 care sector, see Heart (care) work Caregivers UK, 224 Carer’s Allowance (UK), 293 Carl, Noah, 165n Carnegie Mellon University, 282 Carnes, Nicholas, 172 Carr, Nicholas, The Shallows, 22 Case, Anne, 206–7, 220 Cavendish, Camilla, 240, 242 Cavendish Laboratory (UK), 45 CBI/Pearson Education and Skills Survey, 198 CCTV, 185 Centre for Time Use Research, 242–43, 246–47 centrifugal forces, x, 278 centripetal forces, x, 278 Chabris, Christopher, 67, 78–79 Charman, Ken, 253–55 Chartered Institute of Personnel and Development (UK), 145–46 Cheese, Peter, 145–46 child-rearing, 224–25, 227, 229–30, 242, 243 China, 39, 85, 259 Churchill, Winston, 194 Cinderella sectors, xii, 162, 241 CIPD, 209 civil service, 31, 41, 43 Clarke, Kenneth, 102 Clinton, Bill, 111, 161–62 Clinton, Hillary, 152, 215 Cobb, Jonathan, The Hidden Injuries of Class (with Sennett), 190 Coe, Robert, 124 Cognitive Abilities Test (CAT), 65 cognitive aptitude, 55–89 assortative mating and, 79–83 behavioral genetics movement and, 72–75, 83, 86, 88 “cognitive elite” and, 78–79 correlation with socioeconomic status, 78–82, 83–84 eleven-plus (UK), 20, 65–66, 82, 100, 196 as gold standard of human esteem, 3–5, 11–12, 28 as innate vs. learned, 55–56, 63, 68, 71–75 measuring, 56, 61–71, see also IQ/IQ-type tests in meritocracy, 75–89 nature of, 55–57, 61, 70–71 need for cognitive diversity and, 88–89, 281–84 selection into cognitive classes, 75–84, 87–88, see also cognitive class social mobility and, 75–84 wisdom and, 283, 302–3 see also intelligence cognitive class, 31–53 assortative mating and, 79–83 cognitive elite (Herrnstein and Murray), 78–79 cognitive entrepreneurs and, 33 creative class cohort, 28, 223–25, 256–58, 270, 299 economic cognitive domination and, see knowledge economy education trends and, 36, 43–53 educational cognitive domination and, see college/university education family background and, 48, 115, 118, 125–26, 156 in future of knowledge economy, 143–44, 253–74 high school graduation (US) and, 14–15, 35, 40, 51, 95–96, 98–99, 116, 118, 124 high-skill occupations, 97, 135–36, 138, 148, 259, 268–71 historical emergence of, 39–53 industrialization and, 32, 33–35, 41–42, 45, 51–52, 253 levels of, 13–15 low-skill occupations, 25–26, 120–21, 135–36, 152, 198, 202–3 methods of entering, 35 middle-skill occupations, 107–11, 129–31, 135–36, 150–52, 198, 209 need for cognitive diversity, 88–89, 281–84 political, see political cognitive domination in postindustrial society, 32, 35–39 professions/professional exams, 39–43, 44, 53 selection into, 75–84, 268–71 shift in cognitive class hegemony, 20–29, 32–33 size in 1930s, 53 social selection based on intelligence, 34–35, 39–41, 46–53 value divide and, 32, 36, 279–84 cognitive sector, see Head (cognitive) work College Board, 66 College of Policing (UK), 148–49 college/university education, 43–53, 93–131 assumptions about, 93–94 brain/gene drain and, 125–26 community colleges (US), 96, 102, 112–13, 115–16 corruption in admissions process, 6n creeping credentialism and, 15, 94–97, 99, 122–24, 130, 271–72 demographic trends and, 131 effectiveness of, 14, 123–25, 129, 130–31, 171–74 era of educational selection, 96–97 expansion of, 99, 100–111, 113–17 family background and, 115, 118, 125–26, 156 funnel for single elite, 5, 36, 52–53, 126, 156 future of, 298 generalist vs. specialized, 38, 47, 49–50, 53, 97–99, 105, 113–17, 272, 299 “genetics of success” and, 75 GI Bill (1944, US), 43–44, 66, 96, 115 globalization and, 259 graduate pay premium, 105, 116–17, 136, 139, 145, 152, 262–64 “graduatization”/income divergence of the labor market, 133–52, 234–39 grandes écoles (France), 44, 48, 81, 102, 118, 141, 156 mass higher education and, 36, 96–98, 100–111, 113–17 meritocracy based on, 6–12 need for cognitive diversity and, 283 overeducation and, 266–67 oversupply of graduates, 94–95, 121–26, 171–72, 268–71 Oxford/Cambridge (UK) and, 41–42, 44–52, 84, 97–98, 101–2, 156, 172–73, 263, 264 political cognitive domination and, 172–74 polytechnics/“new universities” (UK), 98, 100–102, 105–8, 115, 119, 263 postgraduate degrees, 78, 116, 122, 148, 191–92, 212, 258, 266 reversal of trends in, 24, 268–71 Russell Group (UK), 80, 102, 107, 125, 130, 263 SAT (US) and, 20, 52, 64, 65–68, 80, 114–15, 117, 287 signaling effect and, 94–96, 121–26, 267, 271 social mobility and, 6, 103, 105, 125–31, 253–55, 268–71 social selection based on intelligence, 34–35, 39–41, 46–53 student debt and, 14, 104, 115, 116, 268, 297 technician gap and, 107–11, 130–31, 135–36 tuition ceiling in UK, 104, 106–7, 109, 116, 119 in the UK, 41–53, 80–81, 100–107, 116, 262–63 in the US, 48–49, 50, 80, 112–17, 264 see also knowledge economy Collins, Randall, 15 community colleges (US), 96, 102, 112–13, 115–16 Conley, Dalton, 83 construction industry, 197–98, 200–201 Cook, Philip J., The Winner-Take-All Society (with Frank), 142 Corby, Paul, 196–97 Covid-19 crisis, ix–xiii digital giants and, xiii, 16 educational mobility and, 128, 130–31 failure to prepare for, 20 gender division of labor and, xii globalization and, ix–x Hand (manual) work and, 7, 23, 26, 203, 277–78 Head (cognitive) work and, 7, 23, 62, 277–78 Heart (care) work and, 7, 23, 217, 225, 241, 245, 277–78 Internet and, 294, 298–99 lockdown period, xi, 32–33, 298–99 rebalancing of Hand, Head, and Heart work, ix–xiii, 4–5, 20, 21–22, 277–78 Cowen, Tyler, Average Is Over, 273–74 Cowley, Philip, 171–72 Cox, Brian, 299 craft skills, 114, 194, 195, 256–57, 294–96, 299–300, 301–2 Crawford, Matthew B., The Case for Working with Your Hands, 17, 47–48, 114, 189, 195, 275 creative class cohort, 28, 223–25, 256–58, 270, 299 Crosland, Tony, 100, 101 Darwin, Charles, 42 de Gaulle, Charles, 118 Deary, Ian, 165n death penalty, 160–61 deaths of despair (Deaton), 10–11, 136, 206–7, 220, 222 Deaton, Angus, 10–11, 136, 206–7, 220, 222 Dench, Geoff, 164 Dewey, John, 49, 98 Diamond, Jared, 299 digital giants: Covid-19 crisis and, xiii, 16 employment trends and, 25 impact of Internet on intelligence, 22 technology of connection and, 19 “winner-takes-all” markets and, 14, 33, 142, 272, 286 digital Taylorism, 23–25, 144, 258–61 Direct Seafoods, 201 Dodd-Frank Act (2010, US), 284 Duckworth, Angela, 67 Dweck, Carol, 60, 67 early-years education, 15, 73, 217, 218, 242 East India Company, 41 École Nationale d’Administration (ENA, France), 48, 118, 156 economic cognitive domination, see knowledge economy education: college/university, see college/university education early-years, 15, 73, 217, 218, 242 grammar school, 46, 58, 65, 82, 98, 100 lifelong learning, 95, 107–9, 296–301 secondary, see secondary education STEM education, 101–2, 108, 111, 236, 265, 268 vocational, see vocational training Education Acts (UK), 43–44, 46, 98, 100 Educational Testing Service (ETS), 52 Einstein, Albert, 58, 275 elder care, see adult social care eleven-plus (UK), 20, 65–66, 82, 100, 196 Elias, Peter, 266 Eliot, T.

The existing model of helter-skelter globalization has been producing too many losers, not least the global environment. Western society has been dominated in the past two generations by centrifugal forces that have spread global openness and individual freedom but weakened collective bonds and enabled Head work to claim undue reward while Hand and Heart work has diminished in dignity and pay. The knowledge economy has placed cognitive meritocracy at the center of the status hierarchy, and the cognitively blessed have thrived—but many others feel they have lost place and meaning. Recent political trends, surely reinforced by the pandemic, suggest we are moving into a more centripetal phase, in which the nation-state will be consolidated and economic and cultural openness will be a little more constrained.


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Them And Us: Politics, Greed And Inequality - Why We Need A Fair Society by Will Hutton

Andrei Shleifer, asset-backed security, bank run, banking crisis, Benoit Mandelbrot, Berlin Wall, Bernie Madoff, Big bang: deregulation of the City of London, Blythe Masters, Boris Johnson, Bretton Woods, business cycle, capital controls, carbon footprint, Carmen Reinhart, Cass Sunstein, centre right, choice architecture, cloud computing, collective bargaining, conceptual framework, Corn Laws, corporate governance, creative destruction, credit crunch, Credit Default Swap, debt deflation, decarbonisation, Deng Xiaoping, discovery of DNA, discovery of the americas, discrete time, diversification, double helix, Edward Glaeser, financial deregulation, financial innovation, financial intermediation, first-past-the-post, floating exchange rates, Francis Fukuyama: the end of history, Frank Levy and Richard Murnane: The New Division of Labor, full employment, George Akerlof, Gini coefficient, global supply chain, Growth in a Time of Debt, Hyman Minsky, I think there is a world market for maybe five computers, income inequality, inflation targeting, interest rate swap, invisible hand, Isaac Newton, James Dyson, James Watt: steam engine, joint-stock company, Joseph Schumpeter, Kenneth Rogoff, knowledge economy, knowledge worker, labour market flexibility, liberal capitalism, light touch regulation, Long Term Capital Management, Louis Pasteur, low cost airline, low-wage service sector, mandelbrot fractal, margin call, market fundamentalism, Martin Wolf, mass immigration, means of production, Mikhail Gorbachev, millennium bug, money market fund, moral hazard, moral panic, mortgage debt, Myron Scholes, Neil Kinnock, new economy, Northern Rock, offshore financial centre, open economy, plutocrats, Plutocrats, price discrimination, private sector deleveraging, purchasing power parity, quantitative easing, race to the bottom, railway mania, random walk, rent-seeking, reserve currency, Richard Thaler, Right to Buy, rising living standards, Robert Shiller, Robert Shiller, Ronald Reagan, Rory Sutherland, Satyajit Das, shareholder value, short selling, Silicon Valley, Skype, South Sea Bubble, Steve Jobs, The Market for Lemons, the market place, The Myth of the Rational Market, the payments system, the scientific method, The Wealth of Nations by Adam Smith, too big to fail, unpaid internship, value at risk, Vilfredo Pareto, Washington Consensus, wealth creators, working poor, zero-sum game, éminence grise

Firms have to be clever in what they do, how they do it and how they present themselves to their markets. These injunctions already hold true in almost every area. At one level, the knowledge economy is laser surgery, personalised learning and drought-resistant crops; at another it is EasyJet and Ryanair, GPS navigation systems and music downloads; at another it is Pret, Jamie Oliver and Green & Black’s organic chocolate. It is cloud computing, which avoids the infrastructure capital costs of software applications by being accessed online by everyone as a utility. It is visiting the car factory to meet the team that customised your car. It is the immersive entertainment of Modern Warfare II and the iPlayer. Ian Brinkley, director of the Work Foundation’s Knowledge Economy Programme, calculates that more than two-fifths of Britain’s workforce and value-added now come from broadly defined knowledge-based industries and services of these types – double the levels of 1970 – and that the figure will consistently rise in the years ahead.7 This is where wealth, jobs, opportunity and our culture will increasingly be based.

Bradford DeLong (2000) ‘Cornucopia: The Pace of Economic Growth in the Twentieth Century’, NBER Working Paper No. 7602. 8 Robert Winston (2010) Bad Ideas: An Arresting History of Our Inventions, Bantam Press. 9 Richard G. Lipsey, Kenneth I. Carlaw and Clifford T. Bekar (2005) Economic Transformations, Oxford University Press, pp. 93–119. 10 Ibid., p. 132 and general discussion. 11 Joel Mokyr (2002) The Gifts of Athena: Historical Origins of the Knowledge Economy, Princeton University Press; Joel Mokyr, ‘Progress and Inertia in Technological Change’, in John James and Mark Thomas (eds) (1994) Capitalism in Context: Essays in Honor of R. M. Hartwell, University of Chicago Press, pp. 230–54. 12 See Joel Mokyr (2004) The Gifts of Athena: The Historical Orgins of the Knowledge Economy, Princeton University Press. 13 Douglass C. North, John Joseph Wallis and Barry R. Weingast (2009) Violence and Social Orders: A Conceptual Framework for Interpreting Recorded Human History, Cambridge University Press. 14 James C.

, LSE Centre for Economic Performance Occasional Paper No. 24. 31 For a different, more subtle set of management indicators which are rigorously evaluated, see Casey Ichniowski and Kathryn Shaw (2004) ‘Beyond Incentive Pay: Insiders’ Estimates of the Value of Complementary Human Resource Management Practices’, Journal of Economic Perspectives 17 (1): 155–80. 32 Judith Chevalier (1995) ‘Capital Structure and Product-Market Competition: Empirical Evidence from the Supermarket Industry’, American Economic Review 85: 415–35. 33 Philippe Aghion, George-Marios Angletos, Abhijit Banerjee and Kalina Manova (2004) ‘Volatility and Growth: Financial Development and the Cyclical Composition of Investment’, working paper, Harvard University. 34 Josh Lerner (2009) Boulevard of Broken Dreams: Why Public Efforts to Boost Entrepreneurship and Venture Capital Have Failed – and What to Do about It, Princeton Unversity Press. 35 William Baumol, ‘Toward Analysis of Capitalism’s Unparalleled Growth: Sources and Mechanism’, in Eytan Sheshinski, Robert J. Strom and William J. Baumol (2007) Entrepreneurship, Innovation, and the Growth Mechanism of the Free-Enterprise Economies, Princeton University Press. 36 See also Robert R. Wiggins and Timothy W. Ruefli (2006) ‘Schumpeter’s Ghost: Is Hypercompetition Making the Best of Times Shorter?’, Strategic Management Journal 26 (10): 887–911. 37 Ian Brinkley (2009) ‘Knowledge Economy and Enterprise’, working paper, Knowledge Economy, run by the Work Foundation. 38 Kerry Capell, ‘Vodafone: Embracing Open Source with Open Arms’, Businessweek, 9 April 2009, at http://www.businessweek.com/magazine/content/09_16/b4127052262113.htm. See also Henry Chesbrough (2006) Open Business Models: How to Thrive in the New Innovation Landscape, Harvard Business School Press; and Eric Von Hippel (2006) Democratizing Innovation, MIT Press. 39 Robert C.


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23 Things They Don't Tell You About Capitalism by Ha-Joon Chang

"Robert Solow", affirmative action, Asian financial crisis, bank run, banking crisis, basic income, Berlin Wall, Bernie Madoff, borderless world, Carmen Reinhart, central bank independence, collateralized debt obligation, colonial rule, corporate governance, Credit Default Swap, credit default swaps / collateralized debt obligations, David Ricardo: comparative advantage, deindustrialization, deskilling, ending welfare as we know it, Fall of the Berlin Wall, falling living standards, financial deregulation, financial innovation, full employment, German hyperinflation, Gini coefficient, hiring and firing, Hyman Minsky, income inequality, income per capita, invisible hand, joint-stock company, joint-stock limited liability company, Joseph Schumpeter, Kenneth Rogoff, knowledge economy, labour market flexibility, light touch regulation, Long Term Capital Management, low skilled workers, manufacturing employment, market fundamentalism, means of production, Mexican peso crisis / tequila crisis, microcredit, Myron Scholes, North Sea oil, offshore financial centre, old-boy network, post-industrial society, price stability, profit maximization, profit motive, purchasing power parity, rent control, shareholder value, short selling, Skype, structural adjustment programs, the market place, The Wealth of Nations by Adam Smith, Thomas Malthus, Tobin tax, Toyota Production System, trade liberalization, trickle-down economics, women in the workforce, working poor, zero-sum game

The best proof of this is the contrast between the economic successes of the East Asian countries, with their famously high educational achievements, and the economic stagnation of Sub-Saharan African countries, which have some of the lowest educational records in the world. Moreover, with the rise of the so-called ‘knowledge economy’, in which knowledge has become the main source of wealth, education, especially higher education, has become the absolute key to prosperity. What they don’t tell you There is remarkably little evidence showing that more education leads to greater national prosperity. Much of the knowledge gained in education is actually not relevant for productivity enhancement, even though it enables people to lead a more fulfilling and independent life. Also, the view that the rise of the knowledge economy has critically increased the importance of education is misleading. To begin with, the idea of the knowledge economy itself is problematic, as knowledge has always been the main source of wealth. Moreover, with increasing de-industrialization and mechanization, the knowledge requirements may even have fallen for most jobs in the rich countries.

In the mathematical part of the 2007 TIMSS, US fourth-graders were behind not only the famously mathematical children of the East Asian countries but also their counterparts from countries such as Kazakhstan, Latvia, Russia and Lithuania.4 Children in all other rich European economies included in the test, except England and the Netherlands, scored lower than the US children.5 Eighth-graders from Norway, the richest country in the world (in terms of per capita income at market exchange rate – see Thing 10), were behind their counterparts not only in all other rich countries but also in much poorer countries, including Lithuania, Czech Republic, Slovenia, Armenia and Serbia (it is interesting to note that all these countries are former socialist countries).6 Eighth-graders from Israel, a country famous for its educational zeal and exceptional performance in high-end research, scored behind Norway, falling behind Bulgaria as well. Similar stories were observed in science tests. How about the knowledge economy? Even if education’s impact on growth has been meagre so far, you may wonder whether the recent rise of the knowledge economy may have changed all that. With ideas becoming the main source of wealth, it may be argued, education will from now on become much more important in determining a country’s prosperity. Against this, I must first of all point out that the knowledge economy is nothing new. We have always lived in one in the sense that it has always been a country’s command over knowledge (or lack of it) that made it rich (or poor). China was the richest country in the world during the first millennium because it possessed technical knowledge that others did not – paper, movable type, gunpowder and the compass being the most famous, but by no means the only, examples.

Poor people in poor countries should not be blamed for their poverty, when the bigger explanations lie in the poverty of their national economic systems and immigration control in the rich countries. Market outcomes are not ‘natural’ phenomena. They can be changed. Fifth: we need to take ‘making things’ more seriously. The post-industrial knowledge economy is a myth. The manufacturing sector remains vital. Especially in the US and the UK, but also in many other countries, industrial decline in the last few decades has been treated as an inevitability of a post-industrial age, if not actively welcomed as a sign of post-industrial success. But we are material beings and cannot live on ideas, however great the knowledge economy may sound. Moreover, we have always lived in a knowledge economy in the sense that it has always been a command over superior knowledge, rather than the physical nature of activities, that has ultimately decided which country is rich or poor.


pages: 168 words: 50,647

The End of Jobs: Money, Meaning and Freedom Without the 9-To-5 by Taylor Pearson

"side hustle", Airbnb, barriers to entry, Ben Horowitz, Black Swan, call centre, cloud computing, commoditize, creative destruction, David Heinemeier Hansson, Elon Musk, en.wikipedia.org, Frederick Winslow Taylor, future of work, Google Hangouts, Kevin Kelly, Kickstarter, knowledge economy, knowledge worker, loss aversion, low skilled workers, Lyft, Marc Andreessen, Mark Zuckerberg, market fragmentation, means of production, Oculus Rift, passive income, passive investing, Peter Thiel, remote working, Ronald Reagan: Tear down this wall, sharing economy, side project, Silicon Valley, Skype, software as a service, software is eating the world, Startup school, Steve Jobs, Steve Wozniak, Stewart Brand, telemarketer, Thomas Malthus, Uber and Lyft, uber lyft, unpaid internship, Watson beat the top human players on Jeopardy!, web application, Whole Earth Catalog

The Rothschilds again show the value of investing early and heavily in a change in limits. No one has heard much about the Rothschilds banking innovations in the last hundred years or so, yet there are plenty of wealth Rothschild descendants walking around today. The Knowledge Economy (1900–2000): The Conquest of the Corporation Over the course of the one hundred and fifty years following the Napoleonic Wars and Nathan Rothschild’s loan to Friedrich, (roughly 1800–1950), the modern corporation arose. As we transitioned from an industrial to knowledge economy, banks became extremely effective at producing capital, but the economy didn’t have enough knowledge to grow. The limit has moved from capital to knowledge. The dominant player changed from banker to CEO, and the dominant institution shifted from banks to corporations.

We aren’t going through a global recession—we’re transitioning between two distinct economic periods Certainly, the model of four distinct periods is certainly oversimplified. Economies and societies are far more complex systems than an assembly line. Different limits can exist in the same society. There are still agricultural workers (farmers) and industrial workers throughout the West, but the broadest segment of Western population is employed in the knowledge economy, and it’s that part of the economy that, over the past hundred years, has been responsible for creating most of the abundance and wealth now available. When the limit of an economy shifts through the four different stages, investing more heavily in what has always worked won’t improve the output—just as spending more time in the gym is counter-productive if you aren’t sleeping enough or eating healthy.

Could we be at the same point for entrepreneurship? 4 The Entrepreneurial Economy (2000ish–???) The Emergence of the Entrepreneur Globalization means you are no longer competing to be more knowledgeable than the person down the street, but more knowledgeable than seven billion people around the world. Communication technology and increasing education standards have brought more individuals into the knowledge economy in the past ten years than in the preceding century. We’ve seen the number of college graduates globally go from ninety million to one hundred and thirty million between 2000 and 2010. It took us all of human history to get to ninety million and then only ten years to add another forty million.26 Secondly, the rapid advance of technology has replaced many simple tasks and driven more people into complicated knowledge work.


The Making of a World City: London 1991 to 2021 by Greg Clark

Basel III, Berlin Wall, Big bang: deregulation of the City of London, Boris Johnson, British Empire, business climate, business cycle, capital controls, carbon footprint, congestion charging, corporate governance, cross-subsidies, deindustrialization, Dissolution of the Soviet Union, East Village, Fall of the Berlin Wall, financial innovation, financial intermediation, global value chain, haute cuisine, housing crisis, industrial cluster, intangible asset, Kickstarter, knowledge economy, knowledge worker, labour market flexibility, low skilled workers, manufacturing employment, Masdar, mass immigration, megacity, New Urbanism, offshore financial centre, Pearl River Delta, place-making, rent control, Robert Gordon, Silicon Valley, smart cities, sovereign wealth fund, trickle-down economics, urban planning, urban renewal, working poor

., New Delhi, India 1 2015 Contents About the Author Foreword by Martin Simmons Preface by Rosemary Feenan and Robert Gordon Clark Acknowledgements ix xi xiii xv Section I London in 1991 – Setting the scene 1 Introduction: Honor Chapman and London: World City 2 London prior to 1991: The back story 3 11 Planning for a new world city 12 The rise of finance and a new rationale for post-industrial London 13 A hiatus of government 16 The LDDC and a new era of pragmatism 16 3 The 1991 London: World City report and its message about London 19 Old rivals, new rivals 22 An agenda for metropolitan governance 24 Brand new: The promotion of London 26 The future knowledge economy 29 Section II The evolution of London, 1991 to 2015 4 The internationalisation of London’s economy 35 Internationalisation of London’s labour force 39 The global financial crisis and after 43 5 Leadership, governance and policy 47 1997 and a new direction for metropolitan government 52 The London Plan: A global city strategy 56 London boroughs 59 Promoting London 60 London’s governance today 66 vi Contents 6 Re-investment and urban regeneration 69 Cultural revitalisation of the South Bank: Lambeth, Southwark and Greenwich 72 New regeneration powers from 2000 74 Regeneration in perspective 77 From de-industrial to post-industrial: Building a new experience for markets, leisure and commerce 80 7 Corporate hub, office market and real estate 87 The rise and rise of tall buildings 88 The diffusion of London’s office geography 89 The transformative impact of foreign capital 93 8 Homes and housing in London 99 Consensus but complacency in the 1990s 100 The London Plan and a new agenda for housing 101 London’s housing predicament: Prospects and solutions 107 9 London’s evolving infrastructure platform 111 The impact of TfL and citywide government on transport 113 From incrementalism to integration?

As the competitive field came into clearer focus, the report also made the key claim that urban size was no longer the critical enabling factor for a world city, and that it is now ‘the quality of their environment, cultural provision and urban amenities’ which are decisive differentiating factors (LPAC, 1991: 18). LPAC’s evaluation was in many respects far-sighted because, since 1991, improvements in quality of life, lifestyle options, education opportunities and career development have become much more important to the success and attraction of cities. Hubs such as Zurich, Dubai and Barcelona are only the most feted examples of cities that managed to develop outstanding knowledge economy niches despite relatively small populations. An agenda for metropolitan governance Perhaps the biggest achievement of London: World City was its galvanising of concerted action around London’s critical need for strategic city-wide government. The report’s surveys consistently and persuasively specified the necessity for more and better strategic government. The “biggest metropolitan area in Europe”, it lamented, lacked a “city-wide authority or agency, and its major strategic decisions are in effect in the hands of central government with its dayto-day controls being run by individual London Boroughs” (LPAC, 1991: 185).

Governance of the transport system did improve considerably, the ten-year TfL Business Plan confirmed a multi-billion cycle of investment, and upgrades have been achieved to the Tube, cross-London rail, regional airports and inter-city connections. The report’s concern with vehicle congestion became less unrelentingly urgent after the congestion charge scheme that inspired several US and European cities to consider the same intervention. The apprehension over basic provision communicated by LPAC did temporarily abate, only for new challenges to surface as London has continued to grow. The future knowledge economy London: World City acknowledged the catalysing effect of financial services growth on London’s economic structure and world city status. Many of the strengths it identified of London – ‘regulatory regime’, ‘position between US and Japanese time-zones’ and ‘well-developed English based infrastructure’ – remain bedrocks of the city’s competitive future (LPAC, 1991: 59). Equally, its emphasis on the significance of product innovation as the route to future success for London’s financial sector has proved discerningly, albeit fatefully, perceptive.


The New Class War: Saving Democracy From the Metropolitan Elite by Michael Lind

affirmative action, anti-communist, basic income, Bernie Sanders, Boris Johnson, Bretton Woods, business cycle, capital controls, Cass Sunstein, central bank independence, centre right, collective bargaining, commoditize, corporate governance, crony capitalism, deindustrialization, Doha Development Round, Donald Trump, Edward Snowden, future of work, global supply chain, guest worker program, Haight Ashbury, illegal immigration, immigration reform, invisible hand, knowledge economy, liberal world order, low skilled workers, low-wage service sector, manufacturing employment, Mark Zuckerberg, mass immigration, means of production, moral panic, Nate Silver, new economy, offshore financial centre, oil shock, open borders, plutocrats, Plutocrats, Ponzi scheme, purchasing power parity, Ralph Nader, regulatory arbitrage, rent-seeking, Richard Florida, Ronald Reagan, Silicon Valley, The Wealth of Nations by Adam Smith, Thorstein Veblen, trade liberalization, union organizing, universal basic income, upwardly mobile, WikiLeaks, Wolfgang Streeck, working poor

Many of these corporate managers, financiers, lawyers, accountants, engineers, foundation program officers, media elites, and academics do pretty much the same kind of work that people in their professions did half a century ago, adjusted for differences in technology and industrial organization. But we are supposed to believe that they are not just old-fashioned managers and professionals, but members of a new “creative class” and “digital elite,” the “thinkpreneurs” and “thought leaders” of the “knowledge economy” who live in “brain hubs” (to use only a few of the flattering terms in the lexicon of overclass self-idolatry). From the assumption that a nearly meritocratic “knowledge economy” has replaced class-stratified, bureaucratic managerial capitalism follow two kinds of policies. The first are class-neutral, race- or gender-based policies to remove barriers to the advancement of racial minorities and women, including native white women. The second are policies that include skills training or retraining for unsuccessful native white men.

Provide these “left-behind” workers in the West with appropriate skills (“human capital” in the pseudoeconomic jargon of neoliberalism) and their earnings will increase. * * * — ON THE BASIS of SBTC theory, school curricula in the US and elsewhere have been reconfigured to focus on STEM skills. For a generation, the conventional wisdom has held that the “jobs of the future” are “knowledge economy” jobs like software coding. But is this really true? The Bureau of Labor Statistics (BLS) of the US Department of Commerce has provided estimates for US job growth between 2016 and 2026. When the fastest-growing occupations are examined, the knowledge economy thesis does indeed appear to be partly true: “statisticians,” “software developers, applications,” and “mathematicians” are seventh, ninth, and tenth in the list, respectively, although these are outranked by solar photovoltaic installers, wind turbine service technicians (construction and maintenance jobs), and home health and personal care aides.

Instead, the gains from growth have been concentrated among those with income from capital—investors and managers with stock options.4 In one study, in sixteen Western democracies labor productivity grew far more rapidly than average real wages and fringe benefits, but most income growth went to profits of owners and shareholders.5 Another study of thirteen advanced capitalist countries found that the growth in real wages, which had been 4 percent in the 1970s, was less than 1 percent between 1980 and 2005, while the wage share of income declined from 78 percent to 63 percent, with the rest going to income from profits, interest, dividends, and rents.6 The big money is not in “human capital” but in plain old-fashioned capital. The new economy is really a new version of the old economy—the managerial capitalist economy, not some mythical, immaterial “knowledge economy.” To be sure, nations with large pools of engineers and scientists are likely to do better than those without them. Even so, there are relatively few “knowledge economy” jobs as a share of the total. And the well-paid and prestigious ones that are not offshored in the future or given to foreign indentured servants like H-1B guest workers in the US who are willing to work for lower wages than natives will be highly prized, in competitions that the affluent offspring of overclass families are likely to win.


pages: 353 words: 355

The Long Boom: A Vision for the Coming Age of Prosperity by Peter Schwartz, Peter Leyden, Joel Hyatt

American ideology, Asian financial crisis, Berlin Wall, centre right, computer age, crony capitalism, cross-subsidies, Deng Xiaoping, Dissolution of the Soviet Union, European colonialism, Fall of the Berlin Wall, financial innovation, hydrogen economy, industrial cluster, informal economy, intangible asset, Just-in-time delivery, knowledge economy, knowledge worker, life extension, market bubble, mass immigration, megacity, Mikhail Gorbachev, Nelson Mandela, new economy, oil shock, open borders, Productivity paradox, QR code, Ronald Reagan, shareholder value, Silicon Valley, Steve Jobs, the scientific method, upwardly mobile, Washington Consensus, Y2K

But Reagan and Thatcher did create the political and economic context for the beginnings of the transformation of capitalism. Although 42 The Lowq BOOM they would not explain themselves in this way, they acted as midwives in the birthing of the New Economy, the knowledge economy, out of the old industrial economy. The old economy was relatively static—change came more slowly. The New Economy became increasingly entrepreneurial and innovative. Those who succeeded were those who moved quickly. Pre- 1980s, we lived and worked in an industrial and service economy, where we mostly made stuff, tangible things, and provided services with them. Post-1980s, we are moving increasingly to a knowledge economy, where the new value added comes in the realm of ideas, which are intangibles. We still make physical things—food, cars, houses—but the growth and dynamism of the economy increasingly comes from the information sectors, the emerging knowledge sectors.

They will see developments in the decades around the turn of our century as nothing short of a sea change in the nature of capitalism. We will have gone from an economy driven by the production of tangible things to one driven by intangible ideas. They will see the forty-year period from 1980 to 2020 as encompassing a critical shift from an Industrial Age economy to an Information Age economy, or a Knowledge Economy, or what we simply call the New Economy. Those people in 2050 will also see the world in a tense transition right around the turn of the century, just as the twentieth century rolled over into the twenty-first. They'll understand this millennial anxiety as more than just a reaction to the collapse of the economies of Asia and other developing regions. They'll see the turmoil as a struggle of the world trying to go global by taking those new technologies, taking the redesigned New Economy that had been seen most clearly in prototype in the United States, and trying to expand it to the world at large.

The politics seizes on the logic of the New Economy and pushes it toward its ultimate conclusion, which has benefits far outside commerce. The business world understands the rationale of "expanding the network," with each additional member bringing added value to everyone. The new politics seeks to assure everyone access to information technologies and opportunities in the New Economy. Business is now coming to understand that in the new knowledge economy, "production is learning." The new politics initiates an overhaul of education and the creation of a new learning society. Business understands the merits of competition. The new politics extends that understanding to what we call the "rule of twos," the necessity of competition, the internal logic of self-correcting systems that lies behind the historical success of democracies and market economies.


pages: 382 words: 100,127

The Road to Somewhere: The Populist Revolt and the Future of Politics by David Goodhart

Affordable Care Act / Obamacare, agricultural Revolution, assortative mating, Big bang: deregulation of the City of London, borderless world, Boris Johnson, Branko Milanovic, Bretton Woods, British Empire, call centre, capital controls, carbon footprint, central bank independence, centre right, coherent worldview, corporate governance, credit crunch, deglobalization, deindustrialization, Donald Trump, Downton Abbey, Edward Glaeser, en.wikipedia.org, Etonian, European colonialism, eurozone crisis, falling living standards, first-past-the-post, gender pay gap, gig economy, glass ceiling, global supply chain, global village, illegal immigration, income inequality, informal economy, job satisfaction, knowledge economy, labour market flexibility, low skilled workers, market friction, mass immigration, mittelstand, Neil Kinnock, New Urbanism, non-tariff barriers, North Sea oil, obamacare, old-boy network, open borders, Peter Singer: altruism, post-industrial society, post-materialism, postnationalism / post nation state, race to the bottom, Richard Florida, Ronald Reagan, selection bias, shareholder value, Skype, Sloane Ranger, stem cell, Thomas L Friedman, transaction costs, trickle-down economics, ultimatum game, upwardly mobile, wages for housework, white flight, women in the workforce, working poor, working-age population, World Values Survey

ISBN: 9781849047999 eISBN: 9781849049139 www.hurstpublishers.com CONTENTS Acknowledgements 1.The Great Divide A Journey from Anywhere 2.Anywheres and Somewheres The Decline (but Survival) of Traditional Values Higher Education and Mobility The Great Liberalisation The Outriders 3.European Populism and the Crisis of the Left Populism Goes Mainstream America and Europe: The Populist Convergence Populist Parties: The Necessary, the Weird and the Ugly Why Populists Damage the Left Most 4.Globalisation, Europe and the Persistence of the National A World on the Move? The Globalisation Overshoot The European Tragedy The Persistence of the National 5.A Foreign Country? The Immigration Story What About Integration? The London Conceit 6.The Knowledge Economy and Economic Demoralisation The Disappearing Middle A Short History of Education and Training Living Standards and Inequality Short-Termism and Foreign Ownership 7.The Achievement Society What is Actually Happening on Mobility? Making it into the Elite 8.What About the Family? More State, Less Family What do Women Want? Supporting Partnerships in an Age of Male-Female Equality 9.A New Settlement Somewheres are not going Anywhere Giving Somewheres a Voice Notes Select Bibliography Index ACKNOWLEDGEMENTS This book is in part a response to recent events.

* * * In the next eight chapters I will first, in chapter two, introduce in more detail that great divide—as revealed in countless surveys—between Anywheres and Somewheres and then, in chapter three, set this British story in a wider European and American context. In the subsequent five chapters I will take different areas of life and show how Anywhere and Somewhere perspectives and interests differ. Chapter four considers globalisation, European integration and the nation state; chapter five looks at immigration, integration and the London story; chapter six looks at the knowledge economy and the declining status of non-graduate employment; chapter seven looks at the achievement society and its discontents; chapter eight looks at the remaking of family life. These are all huge fields about which libraries full of books have been written. I cannot claim to be an expert in any of them but by looking at them through the Anywhere/Somewhere prism I hope to shed some fresh light.

Yet thanks to the rapid increase in immigration to Europe in the past generation, race and ethnicity has now also moved to the centre of European politics, while at the same time the economic discomfort of lower income America and the stagnant living standards and sharp increase in inequality since the 1970s has put social class closer to the centre of US politics. The sharper line between the successful college-educated professional with a degree of security and career progression in the knowledge economy, and the bottom half of the US workforce has cast a long shadow over the American Dream. The median household income of $53,600 is down nearly 7.5 per cent from the peak twenty years ago—but while the incomes of college graduates have risen 22 per cent in that time those of white men who didn’t progress beyond high school have fallen by 9 per cent.22 (And although headline unemployment remains low in America there has been a sharp decline in the employment rate of prime age men.)


pages: 316 words: 87,486

Listen, Liberal: Or, What Ever Happened to the Party of the People? by Thomas Frank

Affordable Care Act / Obamacare, Airbnb, Amazon Mechanical Turk, American ideology, barriers to entry, Berlin Wall, Bernie Sanders, blue-collar work, Burning Man, centre right, circulation of elites, Clayton Christensen, collective bargaining, Credit Default Swap, David Brooks, deindustrialization, disruptive innovation, Donald Trump, Edward Snowden, Fall of the Berlin Wall, financial innovation, Frank Gehry, full employment, George Gilder, gig economy, Gini coefficient, income inequality, Jaron Lanier, Jeff Bezos, knowledge economy, knowledge worker, Lean Startup, mandatory minimum, Marc Andreessen, Mark Zuckerberg, market bubble, mass immigration, mass incarceration, McMansion, microcredit, mobile money, moral panic, mortgage debt, Nelson Mandela, new economy, obamacare, payday loans, Peter Thiel, plutocrats, Plutocrats, Ponzi scheme, post-industrial society, postindustrial economy, pre–internet, profit maximization, profit motive, race to the bottom, Republic of Letters, Richard Florida, ride hailing / ride sharing, Ronald Reagan, sharing economy, Silicon Valley, Steve Jobs, Steven Levy, TaskRabbit, Thorstein Veblen, too big to fail, Travis Kalanick, Uber for X, union organizing, urban decay, women in the workforce, Works Progress Administration, young professional

Professionals dominate liberalism and the Democratic Party in the same way that Ivy Leaguers dominate the Obama cabinet. In fact, it is not going too far to say that the views of the modern-day Democratic Party reflect, in virtually every detail, the ideological idiosyncrasies of the professional-managerial class. Liberalism itself has changed to accommodate its new constituents’ technocratic views. Today, liberalism is the philosophy not of the sons of toil but of the “knowledge economy” and, specifically, of the knowledge economy’s winners: the Silicon Valley chieftains, the big university systems, and the Wall Street titans who gave so much to Barack Obama’s 2008 campaign. Liberal thinkers dutifully return the love, fussing over their affluent, highly educated sweethearts with all manner of flattering phrases: these high-achieving professionals are said to be the “wired workers” who will inherit the future, for example.

See also unemployment NAFTA and sharing economy and training and Johnson, Dirk Jones, Jesse Jordan, Vernon JPMorgan Judis, John Justice Department Kahn, Alfred Kalanick, Travis Kamarck, Elaine Kennedy, Robert F. Kerry, John King, Martin Luther Klein, Joe Knapp, Bill Knights of Labor knowledge economy Kraft, Joseph Krugman, Paul Ku Klux Klan labor flexible markets for law and share of nation’s income labor unions NAFTA and Laden, Osama bin Lanier, Jaron Larson, Magali Lasch, Christopher LawTrades learning class. See also education; knowledge economy Lee, Michelle Lehane, Chris Lehman Brothers Leuchtenburg, William Lew, Jack Lewinsky, Monica Lewis, Ann LIBOR scandal Libya Lieberman, Joe Life Lincoln, Abraham lobbyists Long Beach Mortgage Mack, John Madison, James Mandela, Nelson manufacturing Manza, Jeff March on Washington (1963) Markell, Jack Maron, Marc Marshall Scholars Martha’s Vineyard Massachusetts Department of Housing and Economic Development health care system state legislature Massachusetts Institute of Technology (MIT) Innovation Initiative MassChallenge mass incarceration McCain, John McCaskill, Claire McChrystal, Stanley McGovern, George McGovern Commission MCI McKinsey firm Mechanical Turk Medicare meritocracy Mexico financial crisis of 1995 NAFTA and Microcredit Summit (1997) microlending Microsoft Miller, Zell Mills, C.

One of the few works I know of that seems to approve, albeit with reservations, of liberalism’s alliance with a segment of the upper crust is the 2010 book Fortunes of Change, written by the philanthropy journalist David Callahan.35 The premise of his argument is that our new, liberal plutocracy is different from plutocracies of the past because rich people today are sometimes very capable. “Those who get rich in a knowledge economy,” the journalist tells us, are well-schooled; they often come from the ranks of “highly educated professionals” and consequently they support Democrats, the party that cares about schools, science, the environment, and federal spending for research. It is not a coincidence, Callahan continues, that “some of the biggest zones of wealth creation are near major universities.” The smart get richer and the dumb get … Republicans, I guess.


pages: 519 words: 155,332

Tailspin: The People and Forces Behind America's Fifty-Year Fall--And Those Fighting to Reverse It by Steven Brill

2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, activist fund / activist shareholder / activist investor, affirmative action, Affordable Care Act / Obamacare, airport security, American Society of Civil Engineers: Report Card, asset allocation, Bernie Madoff, Bernie Sanders, Blythe Masters, Bretton Woods, business process, call centre, Capital in the Twenty-First Century by Thomas Piketty, carried interest, clean water, collapse of Lehman Brothers, collective bargaining, computerized trading, corporate governance, corporate raider, corporate social responsibility, Credit Default Swap, currency manipulation / currency intervention, Donald Trump, ending welfare as we know it, failed state, financial deregulation, financial innovation, future of work, ghettoisation, Gordon Gekko, hiring and firing, Home mortgage interest deduction, immigration reform, income inequality, invention of radio, job automation, knowledge economy, knowledge worker, labor-force participation, laissez-faire capitalism, Mahatma Gandhi, Mark Zuckerberg, mortgage tax deduction, new economy, obamacare, old-boy network, paper trading, performance metric, post-work, Potemkin village, Powell Memorandum, quantitative hedge fund, Ralph Nader, ride hailing / ride sharing, Robert Bork, Robert Gordon, Robert Mercer, Ronald Reagan, shareholder value, Silicon Valley, Social Responsibility of Business Is to Increase Its Profits, telemarketer, too big to fail, trade liberalization, union organizing, Unsafe at Any Speed, War on Poverty, women in the workforce, working poor

However, human capital can last, and with all the extra resources offered to its offspring as they begin their competition in the rat race, it can be passed on to those who will be smart enough and work hard enough to protect it. POWERING THE CASINO ECONOMY The meritocratic elite that began emerging in the 1960s became the vanguard of what we now call the “knowledge economy”—a world in which brawn (or the investment in and organization of brawn in manufacturing) has increasingly been replaced by brains as the American economic engine. Except for engineers inventing software, the knowledge economy mostly put the new meritocratic elite to work as lawyers, bankers, executives, and consultants creating new ways to trade and bet on stock and other financial instruments, and new ways to rearrange or protect assets, rather than grow them. In that sense, the knowledge economy should probably be called the financial economy—and, given all the betting rather than building involved, perhaps even the casino economy. The rise of the meritocratic elite both drove the rise of the casino economy and thrived in it, and then kept expanding to meet its growing demands.

* * * — This story starts with a new definition of the best and brightest. In the 1960s, colleges and universities, and then the country generally, began to apply a long-treasured, although usually ignored, American value—meritocracy—to challenge the old-boy network in determining who would rise to the top. That made those at the top smarter and better equipped to dominate what was becoming a knowledge economy. It was one of the twentieth century’s great breakthroughs for equality. As you will read, I was a beneficiary of the change and also played a role in embedding it in the legal industry. It had the unintended consequence, however, of entrenching a new aristocracy of rich knowledge workers who were much smarter and more driven than the old-boy network of heirs born on third base. From the 1970s on, they upended corporate America and Wall Street with inventions in law and finance that created an economy built on deals that moved corporate assets around instead of building new assets.

Markovits and Fisman’s study suggesting that even those he described as elite liberals politically were not big on income equality suggests an explanation of a fundamental paradox of the last fifty years in America: That at the same time that the country made such great strides in liberal causes related to democracy and equal rights—women’s rights, civil rights, voting rights, LGBT rights—the balance of economic power and opportunity became so unequal. * * * — Looking further at elite lawyers is a good way to see how the growth of the knowledge economy and meritocracy reinforced each other. Until the 1970s, law was a relatively sleepy profession. From 1900 to 1970 the number of lawyers per capita in the U.S. remained about the same, despite the onslaught of new laws and regulations in the Teddy Roosevelt reform era and continuing during the Franklin Roosevelt New Deal. In the 1970s, however, demand for lawyers exploded, the result of legislative and other developments beginning in the 1960s—including corporate mergers and takeovers; a growing interest in tax shelters; new regulations related to consumer products, employment discrimination, worker safety, and the environment; and industry’s determination to fight back against the rise of adversaries like Ralph Nader and environmentalist Rachel Carson, the author of Silent Spring.


pages: 346 words: 89,180

Capitalism Without Capital: The Rise of the Intangible Economy by Jonathan Haskel, Stian Westlake

"Robert Solow", 23andMe, activist fund / activist shareholder / activist investor, Airbnb, Albert Einstein, Andrei Shleifer, bank run, banking crisis, Bernie Sanders, business climate, business process, buy and hold, Capital in the Twenty-First Century by Thomas Piketty, cloud computing, cognitive bias, computer age, corporate governance, corporate raider, correlation does not imply causation, creative destruction, dark matter, Diane Coyle, Donald Trump, Douglas Engelbart, Douglas Engelbart, Edward Glaeser, Elon Musk, endogenous growth, Erik Brynjolfsson, everywhere but in the productivity statistics, Fellow of the Royal Society, financial innovation, full employment, fundamental attribution error, future of work, Gini coefficient, Hernando de Soto, hiring and firing, income inequality, index card, indoor plumbing, intangible asset, Internet of things, Jane Jacobs, Jaron Lanier, job automation, Kenneth Arrow, Kickstarter, knowledge economy, knowledge worker, laissez-faire capitalism, liquidity trap, low skilled workers, Marc Andreessen, Mother of all demos, Network effects, new economy, open economy, patent troll, paypal mafia, Peter Thiel, pets.com, place-making, post-industrial society, Productivity paradox, quantitative hedge fund, rent-seeking, revision control, Richard Florida, ride hailing / ride sharing, Robert Gordon, Ronald Coase, Sand Hill Road, Second Machine Age, secular stagnation, self-driving car, shareholder value, sharing economy, Silicon Valley, six sigma, Skype, software patent, sovereign wealth fund, spinning jenny, Steve Jobs, survivorship bias, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, Tim Cook: Apple, total factor productivity, Tyler Cowen: Great Stagnation, urban planning, Vanguard fund, walkable city, X Prize, zero-sum game

Futurists like Alvin Toffler and Daniel Bell had begun to talk about the “post-industrial” future as long ago as the 1960s and 1970s. As the power of computers and the Internet became more apparent in the 1990s, the idea that immaterial things were economically important became increasingly widely accepted. Sociologists talked of a “network society” and a “post-Fordist” economy. Business gurus urged managers to think about how to thrive in a knowledge economy. Economists began to think about how research and development and the ideas that resulted from it might be incorporated into their models of economic growth, an economy parsimoniously encapsulated by the title of Diane Coyle’s book The Weightless World. Authors like Charles Leadbeater suggested we might soon be “living on thin air.” The bursting of the dot-com bubble in 2000 dampened some of the wilder claims about a new economy, but research continued among economists to understand what exactly was changing.

The historian James Beniger (1986) argued that modern information technology developed as it did because of an overwhelming need to control production and operations, first on the part of the military, and then in the world of business—by this logic, IT and the research that led to it was shaped by an economy hungry for intangible investment rather than intangible investment happening as a response to the serendipitous invention of various forms of IT.6 Industrial Structure One plausible explanation for the rise in intangible investment is that the balance of what businesses produce has changed. Everyone knows that the output of developed countries, even ones with large manufacturing sectors like Germany or Japan, consists mostly of services. Some of the sociologists and futurists who first heralded the rise of “post-industrial society” were also prophets of what became known as the knowledge economy. Is it true, then, that the modern world is replacing dark satanic mills with service businesses that invest in systems, information, and ideas? It turns out the evidence is not so clear-cut. Figure 2.7 shows that, in all our countries, the service sector was, in the late 1990s, more tangible-intensive, but this has reversed. Remarkably, the manufacturing sector is more intangible-intensive than tangible-intensive and has grown more so.

As Goodridge and Haskel (2016) point out, the UK Data Protection Act “controls how your personal information is used,” that the UK Information Commissioner “promotes data privacy for individuals,” and the Freedom of Information Act allows citizens to request publicly held datasets (all our italics).* Romer (1991), when talking about intangibles, uses terms like “ideas,” “blueprints,” and “instructions.” The OECD talks about the “knowledge economy,” while economists typically refer to “knowledge” that is embodied or disembodied. Meanwhile, in his masterful work on the Industrial Revolution, the economic historian Joel Mokyr divides “knowledge” into propositional and prescriptive (Mokyr 2002). How does all this fit together? Let’s start with data. Define two kinds of data: raw records and transformed data. Raw records are raw data not yet cleaned up, formatted, or transformed—not ready for analysis.


pages: 322 words: 84,580

The Economics of Belonging: A Radical Plan to Win Back the Left Behind and Achieve Prosperity for All by Martin Sandbu

"Robert Solow", Airbnb, autonomous vehicles, balance sheet recession, bank run, banking crisis, basic income, Berlin Wall, Bernie Sanders, Boris Johnson, Branko Milanovic, Bretton Woods, business cycle, call centre, capital controls, carbon footprint, Carmen Reinhart, centre right, collective bargaining, debt deflation, deindustrialization, deskilling, Diane Coyle, Donald Trump, Edward Glaeser, eurozone crisis, Fall of the Berlin Wall, financial intermediation, full employment, future of work, gig economy, Gini coefficient, hiring and firing, income inequality, income per capita, industrial robot, intangible asset, job automation, John Maynard Keynes: technological unemployment, Kenneth Rogoff, knowledge economy, knowledge worker, labour market flexibility, liquidity trap, longitudinal study, low skilled workers, manufacturing employment, Martin Wolf, meta analysis, meta-analysis, mini-job, mortgage debt, new economy, offshore financial centre, oil shock, open economy, pattern recognition, pink-collar, precariat, quantitative easing, race to the bottom, Richard Florida, Robert Shiller, Robert Shiller, Ronald Reagan, secular stagnation, social intelligence, TaskRabbit, total factor productivity, universal basic income, very high income, winner-take-all economy, working poor

But when a society switches to new, more productive ways of doing things, and entirely new activities emerge that require new skills and abilities, the old ways are abandoned. And the danger is that those who thrived on the old ways are abandoned along with them. That is what has happened in the West. Here are four ways how. * * * 1. The plight of the uneducated. What does it mean to say we live in a knowledge economy? It means that information, know-how, and cognitive skills are the central source of economic value. That is obviously true for the research and innovation that makes other activities more productive. But such skills are also vital for managing and coordinating the immense complexity of an advanced economy. A typical car, for example, can have thirty thousand parts; the companies that produce them employ hundreds of thousands of employees in many countries, plus outside suppliers.

The crumbling foundations of the blue-collar aristocracy are the assembly lines, docks, rigs, and trucks where the men traditionally did most of the work. As such, they are the perfect stage for displays of old-fashioned machismo (Trump’s photo op with an eighteen-wheel truck on the White House lawn comes to mind). That sits less well with the skills that create value in the new service and knowledge economy. Social intelligence, a talent for caring, and similar soft skills are increasingly in demand, as are the jobs that require them: nursing, social care and childcare, teaching, and the like. In the United States, for example, one in four new jobs in the next decade is expected to come in health care, social assistance, and education, and we should expect similar developments elsewhere.19 In many places, however, these jobs come with low status and lower pay.

Some countries did better than others, however. How well or badly different countries navigated that change maps well onto how manageable or challenging a political landscape they face today. There are three stages in the story of how policy makers have dealt with the economic upheavals of the last half century. The first is how they managed—or more often than not, mismanaged—the shift from an industrial to a knowledge economy. The second is the impact of the global financial crisis, the run-up to it and its aftermath. The third is still under way: it is about the policy response to the digitisation of economic life. If this were baseball, it would be fair to count two strikes against Western policy makers’ performance already. That leaves them one pitched ball—the third big economic transformation hurtling towards us—away from being struck out


pages: 356 words: 91,157

The New Urban Crisis: How Our Cities Are Increasing Inequality, Deepening Segregation, and Failing the Middle Class?and What We Can Do About It by Richard Florida

affirmative action, Airbnb, basic income, Bernie Sanders, blue-collar work, business climate, Capital in the Twenty-First Century by Thomas Piketty, clean water, Columbine, congestion charging, creative destruction, David Ricardo: comparative advantage, declining real wages, deindustrialization, Donald Trump, East Village, edge city, Edward Glaeser, failed state, Ferguson, Missouri, Gini coefficient, Google bus, high net worth, income inequality, income per capita, industrial cluster, informal economy, Jane Jacobs, jitney, Kitchen Debate, knowledge economy, knowledge worker, land value tax, low skilled workers, Lyft, megacity, Menlo Park, mortgage tax deduction, Nate Silver, New Economic Geography, new economy, New Urbanism, occupational segregation, Paul Graham, plutocrats, Plutocrats, RAND corporation, rent control, rent-seeking, Richard Florida, rising living standards, Ronald Reagan, secular stagnation, self-driving car, Silicon Valley, sovereign wealth fund, superstar cities, the built environment, The Chicago School, The Death and Life of Great American Cities, the High Line, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, Thorstein Veblen, trickle-down economics, Uber and Lyft, uber lyft, universal basic income, upwardly mobile, urban decay, urban planning, urban renewal, urban sprawl, white flight, young professional

I began to see the back-to-the-city movement as something that conferred a disproportionate share of its benefits on a small group of places and people. I found myself confronting the dark side of the urban revival I had once championed and celebrated. Our divides were causing greater inequality both within cities and metro areas, and between them. As I pored over the data, I could see that only a limited number of cities and metro areas, maybe a couple of dozen, were really making it in the knowledge economy; many more were failing to keep pace or falling further behind. Many Rustbelt cities are still grappling with the devastating combination of suburban flight, urban decay, and deindustrialization. Sunbelt cities continue to attract people to their more affordable, sprawling suburban developments, but few are building robust, sustainable economies that are powered by knowledge and innovation.

The world’s most innovative and creative places are not the high-rise canyons of Asian cities but the walkable, mixed-use neighborhoods in San Francisco, New York, and London. As I will show in Chapter 10, what our cities need is not just deregulation, but a reformed land use system that, together with broad changes in the tax system, increased investment in transit, and a shift from single-family homes to rental housing, can help create the kinds of density, clustering, and talent mixing that the urbanized knowledge economy requires. The fact of the matter is that the urban land nexus is shaped by an even more powerful and immutable constraint than just land use restrictions—that of basic geography. Cities and metro areas like Los Angeles, San Francisco, Seattle, and Chicago face hard physical boundaries like mountains and water, which, in addition to regulations that limit height or density, hinder their capacity for development.

As working- and middle-class families settled into suburban houses, their purchases of washers, dryers, television sets, living room sofas, carpets, and automobiles stimulated the manufacturing sector that employed so many of them, creating more jobs and still more homebuyers.28 Suburban sprawl was the key engine of the now fading era of cheap economic growth. But today, clustering, not dispersal, powers innovation and economic growth. Many people still like living in suburbs, of course, but suburban growth has fallen out of sync with the demands of the urbanized knowledge economy. Too much of our precious national productive capacity and wealth is being squandered on building and maintaining suburban homes with three-car garages, and on the roads and sprawl that support them, rather than being invested in the knowledge, technology, and density that are required for sustainable, high-quality growth. The suburbs aren’t going away, but they are no longer the apotheosis of the American Dream and the engine of economic growth.


pages: 598 words: 172,137

Who Stole the American Dream? by Hedrick Smith

Affordable Care Act / Obamacare, Airbus A320, airline deregulation, anti-communist, asset allocation, banking crisis, Bonfire of the Vanities, British Empire, business cycle, business process, clean water, cloud computing, collateralized debt obligation, collective bargaining, commoditize, corporate governance, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, David Brooks, Deng Xiaoping, desegregation, Double Irish / Dutch Sandwich, family office, full employment, global supply chain, Gordon Gekko, guest worker program, hiring and firing, housing crisis, Howard Zinn, income inequality, index fund, industrial cluster, informal economy, invisible hand, Joseph Schumpeter, Kenneth Rogoff, Kitchen Debate, knowledge economy, knowledge worker, laissez-faire capitalism, late fees, Long Term Capital Management, low cost airline, low cost carrier, manufacturing employment, market fundamentalism, Maui Hawaii, mega-rich, MITM: man-in-the-middle, mortgage debt, negative equity, new economy, Occupy movement, Own Your Own Home, Paul Samuelson, Peter Thiel, Plutonomy: Buying Luxury, Explaining Global Imbalances, Ponzi scheme, Powell Memorandum, Ralph Nader, RAND corporation, Renaissance Technologies, reshoring, rising living standards, Robert Bork, Robert Shiller, Robert Shiller, rolodex, Ronald Reagan, shareholder value, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, Steve Jobs, The Chicago School, The Spirit Level, too big to fail, transaction costs, transcontinental railway, union organizing, Unsafe at Any Speed, Vanguard fund, We are the 99%, women in the workforce, working poor, Y2K

THE WASHINGTON–WALL STREET SYMBIOSIS: THE INSIDE TRACK OF “THE MONEY MONOPOLY” PART 4: MIDDLE-CLASS SQUEEZE CHAPTER 11. BROKEN PROMISES: BANKRUPTING MIDDLE-CLASS PENSIONS CHAPTER 12. 401(K)’S: DO-IT-YOURSELF: CAN YOU REALLY AFFORD TO RETIRE? CHAPTER 13. HOUSING HEIST: PRIME TARGETS: THE SOLID MIDDLE CLASS CHAPTER 14. THE GREAT WEALTH SHIFT: HOW THE BANKS ERODED MIDDLE-CLASS SAVINGS CHAPTER 15. OFFSHORING THE DREAM: THE WAL-MART TRAIL TO CHINA CHAPTER 16. HOLLOWING OUT HIGH-END JOBS: IBM: SHIFTING THE KNOWLEDGE ECONOMY TO INDIA CHAPTER 17. THE SKILLS GAP MYTH: IMPORTING IT WORKERS COSTS MASSES OF U.S. JOBS PART 5: OBSTACLES TO A FIX CHAPTER 18. THE MISSING MIDDLE: HOW GRIDLOCK ADDS TO THE WEALTH GAP CHAPTER 19. THE RISE OF THE RADICAL RIGHT, 1964–2010: ASSAULT ON THE MIDDLE-CLASS SAFETY NET CHAPTER 20. THE HIGH COST OF IMPERIAL OVERSTRETCH: HOW THE U.S. GLOBAL FOOTPRINT HURTS THE MIDDLE CLASS PART 6: CHALLENGE AND RESPONSE CHAPTER 21.

Grove argues that it will take a new national strategy and a broad commitment in U.S. industry to regenerate America’s muscle in manufacturing. A few glimmers have begun to appear—a handful of plants coming back from China, a modest uptick in manufacturing employment, and business leaders such as Grove speaking out. But much more needs to be done, as you will see in the final section of this book. CHAPTER 16 HOLLOWING OUT HIGH-END JOBS IBM: SHIFTING THE KNOWLEDGE ECONOMY TO INDIA Merchants have no country. The mere spot they stand on does not constitute so strong an attachment as that from which they draw their gain. —THOMAS JEFFERSON, letter, 1814 What we are trying to do is outline an entire strategy of becoming a Chinese company. —JOHN CHAMBERS, CEO of Cisco In this new era of globalization, the interests of companies and countries have diverged.

—RALPH GOMORY, former IBM vice president AMERICA’S RESPONSE to the challenge from China in the 1990s was to shift toward high tech. That became the new rallying cry for business and political leaders. Some economists reckoned that traditional U.S. manufacturing was doomed because China and the rest of Asia were becoming the workshops of the global economy with their three hundred million or more low-cost, moderately skilled workers. America’s new high ground would be the knowledge economy—the Internet, IT, scientific research, product development, corporate services, finance—areas where American universities would generate high-end skills and where start-ups would smartly innovate the United States to a long-term competitive advantage. Bill Clinton, seeking support from Silicon Valley’s high-tech leaders, made the promise of masses of high-skill, high-wage, high-tech jobs a centerpiece of his 1992 presidential campaign and one of his first White House initiatives.


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Always Day One: How the Tech Titans Plan to Stay on Top Forever by Alex Kantrowitz

accounting loophole / creative accounting, Albert Einstein, AltaVista, Amazon Web Services, augmented reality, Automated Insights, autonomous vehicles, Bernie Sanders, Clayton Christensen, cloud computing, collective bargaining, computer vision, Donald Trump, drone strike, Elon Musk, Firefox, Google Chrome, hive mind, income inequality, Infrastructure as a Service, inventory management, iterative process, Jeff Bezos, job automation, Jony Ive, knowledge economy, Lyft, Mark Zuckerberg, Menlo Park, new economy, Peter Thiel, QR code, ride hailing / ride sharing, self-driving car, Silicon Valley, Skype, Snapchat, Steve Ballmer, Steve Jobs, Steve Wozniak, Tim Cook: Apple, uber lyft, wealth creators, zero-sum game

Execution work is everything that goes into supporting those things once they’re live: ordering products, inputting data, closing the books, maintenance. In the industrial economy, almost all work was execution work. A company founder would come up with an idea (Let’s make widgets!) and then hire employees for execution purposes only (they’d be in the factory, making the widgets). Then, in the late 1930s, we started moving from an economy dominated by factories to one dominated by ideas—what we call the “knowledge economy.” In today’s knowledge economy, ideas matter, but we still mostly spend our time on execution work. We develop a new product or service, and then spend our time supporting it instead of coming up with something else. If you sell dresses, for instance, supporting each design requires loads of execution work: pricing, sourcing, inventory management, sales, marketing, shipping, and returns. Additional support work props up these processes, including basic tasks in human resources, contracts, and accounting.

Lag behind and you’d get fired. Talk fresh to a manager and, well, you’d get fired. Workers were hired for their labor, not their ideas. So companies could replace them overnight and hardly tell the difference. Then came the reaction. In the mid-1900s, we moved from an economy driven by industry to one driven by information. In this new knowledge economy, companies hired people not simply for what they could do physically, but for what they knew. The transition to the knowledge economy caused managers to start rethinking the old factory approach. Striking fear into your employees, it turned out, wasn’t a great way to harness their brain power. Treating them with kindness and respect, however, could net smarter marketing plans, creative accounting solutions, and successful customer service interactions in return.

See invention “disagree and commit” principle, 24 Dorsey, Jack, 212 Downey, Allen, 200 Dweck, Carol, 185 Dyer, Lee, 210–13 dystopian technological scenarios, 191–205 education system, 213–15 Eichenwald, Kurt, 189–90 Elamiri, Abdellah, 164, 165, 189 Element.ai, 13 Elison, Meg, 193 eMarketer, 73, 111, 114, 147, 195 employment, technology’s impact on, 35–36, 201–2, 204–5, 215–16, 223–24 Engineer’s Mindset about, 14–18, 17 and Apple, 17, 131, 143, 151, 161 at aQuantive, 163 general adoption of, 18, 211, 213, 225 tech leaders with (see Bezos, Jeff; Nadella, Satya; Pichai, Sundar; Zuckerberg, Mark) three applications of, 15–17, 17 (see also collaboration; hierarchies; invention) execution work, 8–10, 11–14, 226 Facebook, 55–91 abuses of power by, 195–96 addressing feedback failures at, 83–89 advertising revenues of, 195–96 algorithmic compensation model of, 81–82 artificial intelligence/machine learning at, 75–81, 88 and Cambridge Analytica, 83, 84, 158 and congressional investigations, 83–84, 85–86 content moderation at, 77–81, 86 contractors’ wages at, 155 dominance of, 3 Engineer’s Mindset at, 16 and Facebook Groups, 69–70, 201 and Facebook Live, 77 feedback culture at, 1–2, 16, 55–57, 60–62, 66, 68 and feedback from staff, 65–68, 70–74 and feedback from users, 59, 59n, 68–70 Friday Q&As at, 62–63 idea pathways at, 62–63 invention at, 58–60, 101 leadership team at, 63–64 mobile app of, 65–68 and News Feed, 68–69 and Oculus Connect (virtual reality), 89–90 optimism evident at, 85–86 and presidential election of 2016, 16, 59, 64, 83 and privacy emphasis of Apple, 157–58 reinventions of, 7, 74, 89–90 and Sandberg, 64–65 Stories feature of, 70–74 suicide-prevention tool of, 79–80 training on feedback delivery, 55–57 vulnerability of, 58 See also Zuckerberg, Mark face-recognition technology, 75–76 factories, 207–8 Farestart, 217 Federal Bureau of Investigation (FBI), 155–59 Federighi, Craig, 129, 134 feedback and feedback cultures addressing gaps/failures in, 85–89 and Apple’s Siri, 144 Facebook’s culture of, 1–2, 16, 55–57, 60–62, 66, 68 and hierarchy, 55, 213 at Microsoft, 181 from the public, 59, 59n receiving, 57 training on delivery of, 55–57 VitalSmarts’ method of, 56 Firefox by Mozilla, 104, 106–7 Fitzpatrick, Jen, 114–15 Fong-Jones, Liz, 119 Fox, Nick, 116 General Motors (GM), 9 Gershgorn, Dave, 188 Ghonim, Wael, 193 Giannandrea, John, 134 Giridharadas, Anand, 217 Give and Take (Grant), 63 Gizmodo, 94 Gleit, Naomi, 62, 63 Go grocery store of Amazon, 21–22, 25, 53 Goldstein, Robin Diane, 132, 138 Goler, Lori, 62, 81, 82 Google, 93–128 abuses of power by, 195–96 advertising revenues of, 195–96 and AI Principles, 122 and Alphabet restructuring, 110–11 and Amazon Echo, 109, 111 and Android, 96, 108 and artificial intelligence/machine learning, 13, 109, 111–12, 114, 119–23 and Chrome, 7, 96, 102–8 communication tools enabling collaboration at, 96–99, 115–16, 123, 125, 128 cross-company collaboration at, 17, 96–97, 114–16, 118–19 and Damore memo, 93–95 dissent at, 119–28 dominance of, 3 empowerment of employees at, 105–6 Engineer’s Mindset at, 17 and Gmail, 102–4, 112 and Google+, 115 and Google Assistant, 7, 17, 96, 113–19 and Google Home, 116–17, 118, 147 invention encouraged at, 101 and Microsoft, 96, 100, 102, 103–4 and partnerships for Toolbar distribution, 100–102, 107 and Pentagon’s Maven project, 119–23, 127 productivity apps of, 103 products developed by, 7 reinventions of, 95–96, 110–11, 114 transparency at, 96, 115–16, 121, 127, 128, 138 Walkout at (2018), 123–28, 154–55 See also Pichai, Sundar government, change needed in, 226 Graham, Don, 60–62, 64 Grant, Adam, 63, 214 Green, Cee Lo, 11 Green, Diane, 120 growth, productivity, 197, 225 growth mindset cultures, 185–86 Hardesty, Ken, 160 Hartman, Marty, 216, 219 Henry, Alyssa, 212 Herbrich, Ralf, 38–39, 42, 52, 220 hierarchies, 184 at Apple, 17, 131, 136 at aQuantive, 163 and Engineer’s Mindset, 16, 17 at Facebook, 55, 62 and hardware operations, 116–17 at Microsoft, 166, 180–83, 190 See also feedback and feedback cultures Hill, Ned, 9 Hired (Bloodworth), 33 Hirsch, Gil, 75 Hit Refresh (Nadella), 165, 180, 183, 184 Hoefflinger, Mike, 65 homelessness, 216–17 HomePod of Apple, 129–31 Honan, Mat, 2 housing, lack of affordable, 216–17 Human Side of Enterprise, The (McGregor), 208–9 Hyman, Louis, 213 IBM, 13 idea work, 8–10, 14, 15 income inequality, 215–19 independent-thinking skills, 214 initiative, value of, 215 “innovator’s dilemma,” 9 Instagram Stories, 73 Internet use, social effects of, 200 introverts, 212 invention Amazon’s culture of, 16, 22–26, 45, 51 Amazon’s system of, 26–30, 36, 101 at Apple, 131, 136–37, 160–61 at aQuantive, 163 and copying other products, 74 cultivation of, 211 democratic invention, 15–16, 17 enabled by technological advances, 9–10 and Engineer’s Mindset, 15–16, 17 exercising thoughtfulness in, 224 at Facebook, 58–60, 101 at Google, 101 incentivizing, 212 at Microsoft, 164, 166, 172–73, 179–80, 190 and reinvention, 7–8, 74 in smaller companies, 225 stymied by tech giants, 196 systems that support, 211–12 Isilon Systems, 18 Ive, Jony, 134, 135 Jassy, Andy, 45 Jobs, Steve death of, 142–43 and iPhone, 7, 142 on values represented in marketing, 159 vision of, 132–33 Judah, Norm, 177, 178 Kiva Systems, 31 knowledge economy, 9 Kumar, Dilip, 45–46 Kwon, Elaine, 40, 41, 45, 49, 52 language translation, automation of, 43 Larson-Green, Julie, 173, 181, 182, 183, 188 Lavin, Carl, 86–88 lay-offs, 221–22 LeCun, Yann, 76 Lee, Kai-Fu, 74 Leo, Michael, 223 Li, Fei-Fei, 120–21 Lin, Sandi, 28, 48, 52 LinkedIn, 186–87 Litwin, Adam Seth, 215, 216, 218 Lobe, 179 loneliness epidemic, 199–200 Lynn, Barry, 195–96 machine learning.


pages: 349 words: 98,868

Nervous States: Democracy and the Decline of Reason by William Davies

active measures, Affordable Care Act / Obamacare, Amazon Web Services, bank run, banking crisis, basic income, business cycle, Capital in the Twenty-First Century by Thomas Piketty, citizen journalism, Climategate, Climatic Research Unit, Colonization of Mars, continuation of politics by other means, creative destruction, credit crunch, decarbonisation, deindustrialization, discovery of penicillin, Dominic Cummings, Donald Trump, drone strike, Elon Musk, failed state, Filter Bubble, first-past-the-post, Frank Gehry, gig economy, housing crisis, income inequality, Isaac Newton, Jeff Bezos, Johannes Kepler, Joseph Schumpeter, knowledge economy, loss aversion, low skilled workers, Mahatma Gandhi, Mark Zuckerberg, mass immigration, meta analysis, meta-analysis, Mont Pelerin Society, mutually assured destruction, Northern Rock, obamacare, Occupy movement, pattern recognition, Peace of Westphalia, Peter Thiel, Philip Mirowski, planetary scale, post-industrial society, quantitative easing, RAND corporation, Ray Kurzweil, Richard Florida, road to serfdom, Robert Mercer, Ronald Reagan, sentiment analysis, Silicon Valley, Silicon Valley startup, smart cities, statistical model, Steve Jobs, the scientific method, Turing machine, Uber for X, universal basic income, University of East Anglia, Valery Gerasimov, We are the 99%, WikiLeaks, women in the workforce, zero-sum game

Pointing particularly to examples such as “Silicon Fen” around Cambridge University or North Carolina’s “Research Triangle,” gurus such as Richard Florida, Michael Porter, and Charles Leadbeater argued that the economic success stories of the future would be cities and business clusters that attracted highly educated, socially liberal workers, who were willing to mingle informally and circulate ideas. These centers of innovation would often emerge around universities. With good social connections between entrepreneurs, academic research, and venture capital, a whole new era of prosperity could be achieved, based upon nothing but ideas and imagination. This was the idea of a “knowledge economy” with a “creative class” of open-minded, highly mobile young graduates at its heart. Cities, universities, and other concentrations of people were key to this. This vision was not wrong, but its applicability was limited. It is certainly true that cities such as London and New York have grown rapidly since the early 1990s, both in population and in wealth, with a side effect being widespread housing crises.

The scientific perspective on society, as pioneered by Graunt and Petty, continues to provide a plausible picture of reality for most of these people, mediated by the likes of the New York Times or the Economist. But what of the others? What kinds of perspectives and analyses are suppressed or sidelined by the expert view of aggregates and averages? And can we understand it as something other than just false? Among those not included in this “knowledge economy” vision of progress, an individual is more likely to be an object of expert scrutiny than an agent of it. As cultural and economic advantage becomes increasingly concentrated around big cities and universities, expert knowledge is something the privileged do to the less privileged. Bureaucracy and quantitative research become ways of collecting data about the population, but without actually getting to know people or listen to them.

Thiel represents a certain extreme of libertarian business thinking. However, his ideas and success pose some unavoidable questions about the status of knowledge and expertise in society: what kind of knowledge do we value, and why do we value it? Since the 1980s, policymakers in many countries have deliberately sought to encourage greater commercial applications of scientific knowledge, to develop a “knowledge economy.” Treating knowledge as a private economic asset has led to a vast expansion in consultancy services, such that by the late 1990s, one-sixth of all graduates from American Ivy League universities and Oxford and Cambridge were going into careers in management consultancy.5 In post-industrial societies “creative industries” became viewed as a gold mine, as long as copyright enforcement was strong enough to protect their assets.


pages: 791 words: 85,159

Social Life of Information by John Seely Brown, Paul Duguid

business process, Claude Shannon: information theory, computer age, cross-subsidies, disintermediation, double entry bookkeeping, Frank Gehry, frictionless, frictionless market, future of work, George Gilder, George Santayana, global village, Howard Rheingold, informal economy, information retrieval, invisible hand, Isaac Newton, John Markoff, Just-in-time delivery, Kenneth Arrow, Kevin Kelly, knowledge economy, knowledge worker, lateral thinking, loose coupling, Marshall McLuhan, medical malpractice, moral hazard, Network effects, new economy, Productivity paradox, Robert Metcalfe, rolodex, Ronald Coase, shareholder value, Shoshana Zuboff, Silicon Valley, Steve Jobs, Superbowl ad, Ted Nelson, telepresence, the medium is the message, The Nature of the Firm, The Wealth of Nations by Adam Smith, Thomas Malthus, transaction costs, Turing test, Vannevar Bush, Y2K

Increasingly, as the abundance of information overwhelms us all, we need not simply more information, but people to assimilate, understand, and make sense of it. The markets of the knowledge economy suggest that this shift is already underway. Investment is no longer drawn, as postindustrial champions like to point out, to bricks and mortar and other forms of fixed capital. Nor does it pursue income streams. (In some of the newest knowledge organizations there is as yet barely enough income to puddle, let alone stream.) Instead, investors see value in people and their know-how-people with the ability to envisage and execute adventurous new business plans and to keep reenvisaging these to stay ahead of the competition. So, while the modern world often appears increasingly impersonal, in those areas where knowledge really counts, people count more than ever. In this way, a true knowledge economy should distinguish itself not only from the industrial economy but also from an information economy.

In the process, knowledge has gained sufficient momentum to push aside not only concepts like reengineering but also information, whose rule had previously looked so secure. To be, in Peter Drucker's term, a "knowledge worker" now seems much more respectable than being a mere "information worker," though for a while the latter seemed very much the thing to be. Similarly, pundits are pushing "information economy" and the venerable ''information age" aside in the name of the more Page 119 voguish "knowledge economy" and "knowledge age." There's even a bit of alternative prefixation in such terms as knobot, which we talked about in chapter 2, where the buzz of bots and the buzz of knowledge meet. Beyond its buzz, however, is there any bite to these uses of knowledge? When people talk about knowledge, are they just clinging to fashion (as many no doubt are), or might some be feeling their way, however intuitively, toward something that all the talk of information or of process lacks?

Yet for the sort of implicit communication, negotiation, and collective improvisation that we have described as part of practice, learning, and knowledge sharing, it's clear that there are advantages to working together, however well people may be connected by technology. Indeed, one of the most powerful uses of information technology seems to be to support people who do work together directly and to allow them to schedule efficient face-to-face encounters. Looking too closely at the progression from atoms to bits may miss the role the bits play in allowing us to reinforce the valuable aspects of the world of atoms. Critical movements in the knowledge economy may go not just from atoms to bits, but from atoms to bits and back again. Page 147 Chapter 6 Innovating Organization, Husbanding Knowledge Electronic commerce is the single greatest change in business since the invention of money . . . On the Internet there's perfect information . . . Location doesn't protect you any more. It's a truly global economy. National Public Radio Business News 1 If the recession of the early 1990s disrupted U.S. business, as we noted in chapter 4, the long expansion that has followed has not, as might have been expected, brought calm.


pages: 385 words: 118,314

Cities Are Good for You: The Genius of the Metropolis by Leo Hollis

Airbnb, banking crisis, Berlin Wall, Boris Johnson, Broken windows theory, Buckminster Fuller, call centre, car-free, carbon footprint, cellular automata, clean water, cloud computing, complexity theory, congestion charging, creative destruction, credit crunch, Credit Default Swap, crowdsourcing, Deng Xiaoping, digital map, East Village, Edward Glaeser, Enrique Peñalosa, Firefox, Frank Gehry, Geoffrey West, Santa Fe Institute, Gini coefficient, Google Earth, Guggenheim Bilbao, haute couture, Hernando de Soto, housing crisis, illegal immigration, income inequality, informal economy, Internet of things, invisible hand, Jane Jacobs, Kickstarter, knowledge economy, knowledge worker, Long Term Capital Management, M-Pesa, Mahatma Gandhi, Mark Zuckerberg, Masdar, mass immigration, megacity, negative equity, new economy, New Urbanism, Occupy movement, openstreetmap, packet switching, Panopticon Jeremy Bentham, place-making, Ray Oldenburg, Richard Florida, sharing economy, Silicon Valley, Skype, smart cities, smart grid, spice trade, Steve Jobs, technoutopianism, the built environment, The Chicago School, The Death and Life of Great American Cities, The Great Good Place, the High Line, The Spirit Level, The Wisdom of Crowds, Thomas Malthus, trade route, traveling salesman, urban planning, urban renewal, urban sprawl, walkable city, white flight, Y2K, Yom Kippur War

As John Howkins, who coined the phrase ‘creative economy’, states: ‘Creativity is not new and neither is economics, but what is new is the nature and the extent of the relationship between creativity and economics.’8 In 2001 Howkins predicted that the creativity business was worth $2.2 trillion worldwide and was set to grow 5 per cent a year; he was almost right. This sector was the one area of the global economy that was least affected by the credit crunch; in 2008 it generated $592 billion, more than double its turnover in 2002, which suggests an annual growth of 14 per cent. The knowledge economy forces us to think again about how we work, and what we do; it could also allow us to think about the city anew. According to Richard Florida, the extent of the creative classes is having a profound impact on the success of cities. Using the broadest definition of the knowledge economy as possible – ‘science and technology, arts and design, entertainment and media, law, finance, management, healthcare and education’9 – Florida shows that since the decline of industry in the west, this new class of worker has risen at a gallop: 5 per cent of all employment in 1900, 10 per cent in 1950, 15 per cent in 1980 and more than 30 per cent by 2005.

Culture and tourism have also become important, accounting for $5.6 billion by 1999, and exemplified by the new Marina Bay complex, including theatres, a business hub and even more malls in a city that seems dominated by ‘consumptionscapes’, as well as a Formula 1 racetrack. Singapore now sells itself as the super-charged Asian creative hub. Yet this commitment to the Information Age comes with risks and has altered the relationship between the government and the people, who are now encouraged to be innovative, independent and educated. You cannot encourage innovators and a knowledge economy and then expect them to act like dutiful servants: schools began to teach a new curriculum that encouraged critical thinking rather than learning by rote; the launch of the ‘Singapore One’ initiative guaranteed every citizen a high-speed internet connection while the iN2015 masterplan hopes to develop a new generation of global business leaders.16 This revolution within a revolution – which in time will surely come to question Singapore’s Hobbesian way of life – has nonetheless been dictated from the top down.

For others, mobility itself is no proof of success or creativity, and ‘the stuck’ could easily be reinterpreted as happy.14 Still more warn against the worship of the ‘creative class’ as the only means of developing a competitive economy, dismissing all that has happened before as irrelevant, promoting a doctrine preaching that ‘the history of a city is at best of little use, and at worst an obstacle to entering the advanced knowledge economy. The prescription is to bring the economy from up high into one’s city.’15 It is sometimes too easy to be seduced by the new, rather than really looking and seeing what is happening on the ground. Creativity does not evolve out of a vacuum; it does not emerge from a photo opportunity or a government initiative. No project has ever worked when it has been imposed against the grain of the place.


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The Option of Urbanism: Investing in a New American Dream by Christopher B. Leinberger

addicted to oil, American Society of Civil Engineers: Report Card, asset allocation, big-box store, centre right, commoditize, credit crunch, David Brooks, desegregation, Donald Trump, drive until you qualify, edge city, full employment, Intergovernmental Panel on Climate Change (IPCC), Jane Jacobs, knowledge economy, McMansion, mortgage tax deduction, new economy, New Urbanism, peak oil, Ponzi scheme, postindustrial economy, RAND corporation, Report Card for America’s Infrastructure, reserve currency, Richard Florida, Seaside, Florida, the built environment, transit-oriented development, urban planning, urban renewal, urban sprawl, walkable city, white flight

The boredom of having only the option of drivable sub-urban life, including the unintended consequences of ever longer and more congested commutes and the running of nearly every errand in a car, is not to be underestimated. T H E M A R K E T R E D I S C OV E R S WA L K A B L E U R B A N I S M | 9 1 Alongside these demographic changes, the economy has made a fundamental change. The new economy has been called many things: the virtual economy, the service economy, the postindustrial economy, the knowledge economy, and the creative economy. This has come to mean a focus on the up front, creative portion of a product or service development and the back-end marketing and distribution of that product or service. The actual production may be outsourced abroad, or it may be accomplished with fewer employees in this country due to advances in technology, which lead to increased productivity. This is a repeat of the earlier trend of increased productivity in agriculture, leading to plummeting numbers of jobs over the past century (agricultural jobs were down to less than two percent of all jobs in 2000 from, as mentioned in chapter 1, forty percent in 1900 and twenty-seven percent in 1920).

This is a repeat of the earlier trend of increased productivity in agriculture, leading to plummeting numbers of jobs over the past century (agricultural jobs were down to less than two percent of all jobs in 2000 from, as mentioned in chapter 1, forty percent in 1900 and twenty-seven percent in 1920). The agricultural economy transitioned to the industrial economy, and now the industrial is transitioning to the knowledge economy. The economic driver of how the American Dream is implemented on the ground is changing once again. Dr. Richard Florida’s assertion in his 2002 book, The Rise of the Creative Class, that future economic growth depends on the retention and attraction of the highly educated has become accepted wisdom of many economic development officials in cities throughout the country. The breeding and attraction of young, highly educated people to start new companies, attract similar entrepreneurs, build the local tax base, and become more “hip” is driving many urban and suburban economic development strategies in the 2000s.

The Economist magazine reported that “talent has become the world’s most sought after commodity.”4 Certainly not all of the so-called creative class—software engineers; medical, legal, and financial professionals; high-tech entrepreneurs; educators; and others—want to live in walkable urban places for all phases of their lives, but many of them certainly want the opportunity to do so and may demand it at various times of their lives. The metropolitan area that does not offer walkable urbanism is probably destined to lose economic development opportunities; the creative class will gravitate to those metro areas that offer multiple choices in living arrangements. 92 | THE OPTION OF URBANISM The growth of the knowledge economy means that the most important factor in determining which metropolitan areas experience growth in new companies and jobs is the quality of the workforce—their education, training, and experience. The metropolitan areas with the highest educational attainment tend to be the fastest growing regions today—witness the growth of the two coasts and the Sunbelt of the past couple of decades, the new “U” shape of the USA.


pages: 204 words: 67,922

Elsewhere, U.S.A: How We Got From the Company Man, Family Dinners, and the Affluent Society to the Home Office, BlackBerry Moms,and Economic Anxiety by Dalton Conley

assortative mating, call centre, clean water, commoditize, dematerialisation, demographic transition, Edward Glaeser, extreme commuting, feminist movement, financial independence, Firefox, Frank Levy and Richard Murnane: The New Division of Labor, Home mortgage interest deduction, income inequality, informal economy, Jane Jacobs, Joan Didion, John Maynard Keynes: Economic Possibilities for our Grandchildren, knowledge economy, knowledge worker, labor-force participation, late capitalism, low skilled workers, manufacturing employment, mass immigration, McMansion, mortgage tax deduction, new economy, off grid, oil shock, PageRank, Ponzi scheme, positional goods, post-industrial society, post-materialism, principal–agent problem, recommendation engine, Richard Florida, rolodex, Ronald Reagan, Silicon Valley, Skype, statistical model, The Death and Life of Great American Cities, The Great Moderation, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, transaction costs, women in the workforce, Yom Kippur War

Socializing usually revolves around professional colleagues. Not necessarily—or especially—people we actually work with in our own offices. No, most socializing involves weak, work-related ties: folks who are in the same field but just swinging through town for a conference or meeting—potential clients, former mentors, prospective employees. You never know from where the next big project—that great idea—is going to come from in today’s “knowledge economy.” In our marriage, nobody cooks. We generally eat take-out, when I am in charge, or raw food, when my wife is. Whereas, even in my parents’ relatively progressive marriage, my mother was the primary caregiver (except for Sundays when my father would take us to Aqueduct Racetrack), in our arrangement it is often more likely that I will be the one to pick up the kids thanks to my wife’s more hectic travel schedule.

I’ve borrowed this image from the medieval craftsman who fashioned products one by one in his own cottage industry. This craftsman set his own hours as he was paid for piecework. However, there were inherent limits to how much he could work. He needed raw materials. He needed light (so was generally confined to working during the day). And he needed customers (limited to a very local market). But today’s professional in the knowledge economy is uninhibited by pesky materials or the need to work with specific implements in a “shop.” She can work at any and all times, as long as she has an outlet to plug into and a decent wireless connection. In the flexible nature of the post-industrial economy this new professional shares the freedom of the medieval craftsman to draw up her own schedule, but she is driven by the economic red shift to work any and all hours, made possible by the portable workshop of the BlackBerry and the laptop.

Likewise, one of the most popular forms of gambling, slot machines, involves the seemingly mind-numbing action of inserting a small metal disk into a slot and then pulling a lever. Something that would have epitomized the dullness of Taylorized work in the bygone industrial age is now the way we “get into a zone” of privacy, becoming one with the machine, and escape the oppressive sociality of the service sector and the mind-bending tasks associated with the knowledge economy. Whereas pulling the lever of the machine was once the gesture that clocked you in and out of work, that very same motion now symbolizes our escape from the oppressive sociality of work.4 This remerger of work and play is quite ironic, since some theorists of industrial capitalism saw the emergence of the modern market as the very thing that allowed for a sacrosanct private sphere. That is, it was through the market’s ethic of the separation of business and pleasure that a “private sphere” in which economic relations were verboten was created for the first time in history with modern capitalism.


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The Wake-Up Call: Why the Pandemic Has Exposed the Weakness of the West, and How to Fix It by John Micklethwait, Adrian Wooldridge

Admiral Zheng, Affordable Care Act / Obamacare, basic income, battle of ideas, Berlin Wall, Bernie Sanders, Boris Johnson, carried interest, cashless society, central bank independence, Corn Laws, coronavirus, COVID-19, Covid-19, creative destruction, David Ricardo: comparative advantage, Deng Xiaoping, Dominic Cummings, Donald Trump, Etonian, failed state, Fall of the Berlin Wall, global pandemic, Internet of things, invisible hand, Jones Act, knowledge economy, laissez-faire capitalism, McMansion, night-watchman state, offshore financial centre, oil shock, Panopticon Jeremy Bentham, Parkinson's law, pensions crisis, QR code, rent control, road to serfdom, Ronald Reagan, school vouchers, Shoshana Zuboff, Silicon Valley, smart cities, trade route, universal basic income, Washington Consensus

One former British spy points out that his children are immensely better educated than he was, far more tolerant, but the only time they meet the working class is when their internet order arrives; they haven’t shared trenches with them. They have been relieved of guilt. The closer you get to the summit of the global elite the truer this is. People in Silicon Valley do “give back” but they focus on philanthropy outside the public sector. In a knowledge economy, the brain of a Bezos or a Buffett is their most valuable asset. The only obvious member of the West’s super-rich to have jumped into full-time public service—Mike Bloomberg—employs one of us; even his foes would say he ran New York City well. Very few have followed him. The collapse of the party system has not helped. For much of the twentieth century, parties provided a ladder of promotion for able people who wanted to get into politics.

America’s tech budget is eaten up by the cost of supporting legacy systems—and the elderly workers who run them—because nobody has had the courage to pay for the upgrade. Bill Lincoln should borrow from America’s past, as well as Asia’s present. Roosevelt built the dams. Eisenhower built the freeways. Bill Lincoln will use the fact that America can borrow long-term money at close to 0 percent to build the infrastructure a knowledge economy needs. That includes a subsidized internet, but also an overhaul of technology in every department. Otherwise the shabbiness of LaGuardia airport will be repeated in cyberspace. 9. GO LOCAL An important reason why Seoul did so well in dealing with Covid had nothing to do with technology or efficiency. It had a good mayor. Park Won-soon died in mysterious circumstances in early July.

Reformers like the Webbs argued that you needed to rebuild slum areas to prevent the disease from getting a foothold. Then you needed to provide better nutrition to improve people’s ability to fight off infectious diseases. And then better schools and a decent food supply to make sure you had a fighting-fit, well-educated population. The question now is where the national minimum should be set in a dynamic knowledge economy. We have already explained why America needs a national health service for practical reasons. There are philosophical reasons too. The contract between the richest country on the planet and its people surely entails providing free (or nearly free) medical care in the same way as it involves providing free (or nearly free) education. Franklin Roosevelt argued that government should provide security for “the forgotten man at the bottom of the economic pyramid.”


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Plutocrats: The Rise of the New Global Super-Rich and the Fall of Everyone Else by Chrystia Freeland

activist fund / activist shareholder / activist investor, Albert Einstein, algorithmic trading, assortative mating, banking crisis, barriers to entry, Basel III, battle of ideas, Bernie Madoff, Big bang: deregulation of the City of London, Black Swan, Boris Johnson, Branko Milanovic, Bretton Woods, BRICs, business climate, call centre, carried interest, Cass Sunstein, Clayton Christensen, collapse of Lehman Brothers, commoditize, conceptual framework, corporate governance, creative destruction, credit crunch, Credit Default Swap, crony capitalism, Deng Xiaoping, disruptive innovation, don't be evil, double helix, energy security, estate planning, experimental subject, financial deregulation, financial innovation, Flash crash, Frank Gehry, Gini coefficient, global village, Goldman Sachs: Vampire Squid, Gordon Gekko, Guggenheim Bilbao, haute couture, high net worth, income inequality, invention of the steam engine, job automation, John Markoff, joint-stock company, Joseph Schumpeter, knowledge economy, knowledge worker, liberation theology, light touch regulation, linear programming, London Whale, low skilled workers, manufacturing employment, Mark Zuckerberg, Martin Wolf, Mikhail Gorbachev, Moneyball by Michael Lewis explains big data, NetJets, new economy, Occupy movement, open economy, Peter Thiel, place-making, plutocrats, Plutocrats, Plutonomy: Buying Luxury, Explaining Global Imbalances, postindustrial economy, Potemkin village, profit motive, purchasing power parity, race to the bottom, rent-seeking, Rod Stewart played at Stephen Schwarzman birthday party, Ronald Reagan, self-driving car, short selling, Silicon Valley, Silicon Valley startup, Simon Kuznets, Solar eclipse in 1919, sovereign wealth fund, starchitect, stem cell, Steve Jobs, the new new thing, The Spirit Level, The Wealth of Nations by Adam Smith, Tony Hsieh, too big to fail, trade route, trickle-down economics, Tyler Cowen: Great Stagnation, wage slave, Washington Consensus, winner-take-all economy, zero-sum game

It is no accident that it was the superstars of these two professions that Marshall, writing in 1890, singled out as benefiting disproportionately from the Western world’s economic transformation. In the knowledge economy, more and more professions use a laptop rather than a steam engine, and that means that the superstars in these fields are earning ever greater rewards. The intellectuals are on the road to class power. THE STREET AND THE SUPERSTARS The biggest winners are the bankers. They did well enough, to be sure, in the industrial revolution. They were among that era’s plutocrats—think J. P. Morgan in New York, or Siegmund Warburg in the City of London. But these were the owners of capital. Their employees, the salaried financial professionals, weren’t nearly as richly rewarded. Their job was just to keep score. In the postwar era, with the steady rise of the knowledge economy, the bankers’ role has been dramatically transformed.

Just as the fight between labor and capital defined the first stage of industrial capitalism in the nineteenth and twentieth centuries, Martin argues that the battle between capital and talent is the central tension in the knowledge-based postindustrial capitalism of the twenty-first century. Here is how Martin laid out his theory in the Harvard Business Review: “For much of the twentieth century, labor and capital fought violently for control of the industrialized economy and, in many countries, control of the government and society as well. Now . . . a fresh conflict has erupted. Capital and talent are falling out, this time over the profits from the knowledge economy. While business won a resounding victory over the trade unions in the previous century, it may not be as easy for shareholders to stop the knowledge worker–led revolution in business.” Martin’s thesis helps explain one of the most striking contrasts between today’s super-elite and their Gilded Age equivalents: the rise, today, of the “working rich.” As Emmanuel Saez found, the wealthiest Americans these days are getting most of their income from work—almost two-thirds—compared to a fraction of that, roughly one-fifth, a century ago.

Martin’s theory about the growing power of “the talent” builds on the ideas of Peter Drucker, the Austrian-born scholar who laid the intellectual foundations for the academic study of management. That means you can probably blame Drucker for far too many soul-destroying PowerPoint presentations, peppy but hollow business books, and inspirational corporate “coaches” with lots of energy but no message. But Drucker also, more than half a century ago, predicted the shift to what he dubbed a “knowledge economy” and, with it, the rise of the “knowledge worker.” Drucker made his name in America, but he was a product of the Viennese intellectual tradition—Joseph Schumpeter was a family friend and frequent guest during his boyhood—of looking for the big, underlying social and economic forces and trying to spot the moments when they changed. Accordingly, he saw the emerging knowledge worker as both the product and beneficiary of a profound shift in how capitalism operated.


The New Harvest: Agricultural Innovation in Africa by Calestous Juma

agricultural Revolution, Albert Einstein, barriers to entry, bioinformatics, business climate, carbon footprint, clean water, colonial rule, conceptual framework, creative destruction, double helix, energy security, energy transition, global value chain, income per capita, industrial cluster, informal economy, Intergovernmental Panel on Climate Change (IPCC), Joseph Schumpeter, knowledge economy, land tenure, M-Pesa, microcredit, mobile money, non-tariff barriers, off grid, out of africa, precision agriculture, Second Machine Age, self-driving car, Silicon Valley, sovereign wealth fund, structural adjustment programs, supply-chain management, total factor productivity, undersea cable

It is through continuous improvement that nations transform their economies and achieve higher levels of performance. Using this framework, with government functioning as a facilitator for social learning, business enterprises will become the locus of learning, and knowledge will be the currency of change.11 Most African countries already have in place the key institutional components needed to make the transition to being a player in the knowledge economy. The emphasis should therefore be on realigning the existing structures and creating new ones where they do not exist. The challenge is in building the international partnerships necessary to align government policy with the long-term technological needs of Africa. The promotion of science and technology as a way to meet human welfare needs must, however, Advances in Science, Technology, and Engineering 43 take into account the additional need to protect Africa’s environment for present and future generations.

JKUAT is now working with the Kenyan Ministry of Industrialization to establish the African Biopolymer Center 58 THE NEW HARVEST of Excellence, which will provide the infrastructure needed to carry out a program of research as outlined in the first workshop. That program will include bioresource utilization, biopolymer utilization in health, waste management, and environmental protection, and biopolymer utilization in agriculture as described above. Transferring the production know-how to farmers and the industry is another key component of the Center. Technology Prospecting Much of the debate on the place of Africa in the global knowledge economy has tended to focus on identifying barriers to accessing new technologies. The basic premise has been that industrialized countries continue to limit the ability of developing countries to acquire new technologies by introducing restrictive intellectual property rights. These views were formulated at a time when technology transfer channels were tightly controlled by technology suppliers, and developing countries had limited opportunities to identify the full range of options available to them.

Countries such as India have studied this model and have come to the conclusion that one way to harness the expertise is to create a new generation of “universities for innovation” that will seek to foster the translation of research into commercial products. In 2010 India unveiled a draft law that will provide for the establishment of such universities. The law grew out India’s National Knowledge Commission, a high-level advisory body to the prime minister aimed at transforming the country into a knowledge economy.30 A number of countries have adopted policy measures aimed at attracting expatriates to participate in the economies of their countries of origin. They are relying on the forces of globalization such as connectivity, mobility, and interdependence to promote the use of the diaspora as a source of input into national technological and business programs. These measures include investment conferences, the creation of rosters of experts, and direct appeals by national leaders.


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Culture and Prosperity: The Truth About Markets - Why Some Nations Are Rich but Most Remain Poor by John Kay

"Robert Solow", Albert Einstein, Asian financial crisis, Barry Marshall: ulcers, Berlin Wall, Big bang: deregulation of the City of London, business cycle, California gold rush, complexity theory, computer age, constrained optimization, corporate governance, corporate social responsibility, correlation does not imply causation, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, Donald Trump, double entry bookkeeping, double helix, Edward Lloyd's coffeehouse, equity premium, Ernest Rutherford, European colonialism, experimental economics, Exxon Valdez, failed state, financial innovation, Francis Fukuyama: the end of history, George Akerlof, George Gilder, greed is good, Gunnar Myrdal, haute couture, illegal immigration, income inequality, industrial cluster, information asymmetry, intangible asset, invention of the telephone, invention of the wheel, invisible hand, John Meriwether, John Nash: game theory, John von Neumann, Kenneth Arrow, Kevin Kelly, knowledge economy, light touch regulation, Long Term Capital Management, loss aversion, Mahatma Gandhi, market bubble, market clearing, market fundamentalism, means of production, Menlo Park, Mikhail Gorbachev, money: store of value / unit of account / medium of exchange, moral hazard, Myron Scholes, Naomi Klein, Nash equilibrium, new economy, oil shale / tar sands, oil shock, Pareto efficiency, Paul Samuelson, pets.com, popular electronics, price discrimination, price mechanism, prisoner's dilemma, profit maximization, purchasing power parity, QWERTY keyboard, Ralph Nader, RAND corporation, random walk, rent-seeking, Right to Buy, risk tolerance, road to serfdom, Ronald Coase, Ronald Reagan, second-price auction, shareholder value, Silicon Valley, Simon Kuznets, South Sea Bubble, Steve Jobs, telemarketer, The Chicago School, The Market for Lemons, The Nature of the Firm, the new new thing, The Predators' Ball, The Wealth of Nations by Adam Smith, Thorstein Veblen, total factor productivity, transaction costs, tulip mania, urban decay, Vilfredo Pareto, Washington Consensus, women in the workforce, yield curve, yield management

The advantages of the competitive market-incentive compatibility and low information requirements-allow reductions in pollution to be achieved at lower cost. Market economies solve coordination problems through a combination of spontaneous order and social institutions. Nothing guarantees that solutions will be reached or that those that are reached are efficient. But coevolution has usually produced answers. The Knowledge Economy Big Knowledge ••••••••••••••••••••••••••••••••••••• It is a cliche that we live today in a knowledge economy. 1 At first sight, markets do not seem a good mechanism for producing and transmitting knowledge. Once created, knowledge can be transferred relatively cheaply to other people at little cost. If the people who create new knowledge can't protect it, they can't sell it. And if they can protect it, they will restrict its distribution. Either way, the market economy won't produce and disseminate the knowledge it needs.

HB95.K29 2004 330.12 '2-dc22 2003056911 04 05 06 07 08 <•/RRD 10 9 7 6 5 4 3 2 1 {Contents} • • • • • • • • • • • • • • • • • • • • • • • List of Figures, Tables, and Boxes Acknowledgments A Note to Readers {part I} The 1 2 3 4 5 A Postcard from France The Triumph of the Market People Figures How Rich States Became Rich {part II} 6 7 8 9 10 11 Issues The Structure of Economic Systems Transactions and Rules Production and Exchange Assignment Central Planning Pluralism Spontaneous Order {part III} Perfectly Competitive Markets 12 Competitive Markets 13 Markets in Risk 14 Markets in Money vii ix xi 1 3 9 22 31 54 71 73 83 93 105 115 125 135 137 153 162 {vi} Contents 15 General Equilibrium 16 Efficiency {part IV} The Truth About Markets 173 184 195 Neoclassical Economics and After Rationality and Adaptation Information Risk in Reality Cooperation Coordination The Knowledge Economy 197 209 222 234 247 259 266 How It All Works Out 275 Poor States Stay Poor Who Gets What? Places The American Business Model The Future of Economics The Future of Capitalism 277 289 302 311 323 340 Appendix: Nobel Prizes in Economics Glossary Notes Bibliography Index 356 361 365 390 411 17 18 19 20 21 22 23 {part V} 24 25 26 27 28 29 {List of Figures, Tables, and Boxes} Figures 4.1 4.2 5.1 5.2 14.1 The Distribution of World Income The Dimensions of Economic Lives Rich States in Europe Rich Stares in Asia U.S.

This vacuous phrase has been adopted as policy by the European Union. This similarly vacuous concept has been lauded by the OECD (1975). According to estimates by Dixon (1996), 36% of expenditures under the Superfund to that date related to transactions costs rather than clearing up pollution. Buchanan and Stubblebine (1962), Demsetz (1964). Mnookin and Kornhauser (1979). Chapter 23: The Knowledge Economy ••••••••••••••••••••••••••••••••••••• 1. See, for example, Shapiro and Varian (1998); also "new economy'' writers such as Kelly (1998), Leadbeater (2000), and Coyle (2001). 2. Bodanis (2000), Clark (1979). 3. The Bletchley Park project, once highly secret, has now generated extensive literature-Hinsley and Stripp (1993), Enever (1994), Butters (2000)-and a film (Enigma). 4. In the last years of his life, Turing was a path breaker in the understanding of the mathematics of spontaneous order in nonlinear dynamic systems of the kind described in chapter 10.


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A Pelican Introduction Economics: A User's Guide by Ha-Joon Chang

Affordable Care Act / Obamacare, Albert Einstein, Asian financial crisis, asset-backed security, bank run, banking crisis, banks create money, Berlin Wall, bilateral investment treaty, borderless world, Bretton Woods, British Empire, call centre, capital controls, central bank independence, collateralized debt obligation, colonial rule, Corn Laws, corporate governance, corporate raider, creative destruction, Credit Default Swap, credit default swaps / collateralized debt obligations, David Ricardo: comparative advantage, deindustrialization, discovery of the americas, Eugene Fama: efficient market hypothesis, eurozone crisis, experimental economics, Fall of the Berlin Wall, falling living standards, financial deregulation, financial innovation, Francis Fukuyama: the end of history, Frederick Winslow Taylor, full employment, George Akerlof, Gini coefficient, global value chain, Goldman Sachs: Vampire Squid, Gordon Gekko, greed is good, Gunnar Myrdal, Haber-Bosch Process, happiness index / gross national happiness, high net worth, income inequality, income per capita, information asymmetry, intangible asset, interchangeable parts, interest rate swap, inventory management, invisible hand, Isaac Newton, James Watt: steam engine, Johann Wolfgang von Goethe, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, joint-stock company, joint-stock limited liability company, Joseph Schumpeter, knowledge economy, laissez-faire capitalism, land reform, liberation theology, manufacturing employment, Mark Zuckerberg, market clearing, market fundamentalism, Martin Wolf, means of production, Mexican peso crisis / tequila crisis, Nelson Mandela, Northern Rock, obamacare, offshore financial centre, oil shock, open borders, Pareto efficiency, Paul Samuelson, post-industrial society, precariat, principal–agent problem, profit maximization, profit motive, purchasing power parity, quantitative easing, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, savings glut, Scramble for Africa, shareholder value, Silicon Valley, Simon Kuznets, sovereign wealth fund, spinning jenny, structural adjustment programs, The Great Moderation, The Market for Lemons, The Spirit Level, The Wealth of Nations by Adam Smith, Thorstein Veblen, trade liberalization, transaction costs, transfer pricing, trickle-down economics, Vilfredo Pareto, Washington Consensus, working-age population, World Values Survey

In addition, seeing the share of manufacturing in their output falling, some manufacturing firms have applied to be reclassified as service firms, even though they still conduct some manufacturing. A UK government report estimates that up to 10 per cent of the fall in manufacturing employment between 1998 and 2006 in the UK may be due to this ‘reclassification effect’.7 Making things still matters The view that the world has now entered a new era of the ‘knowledge economy’, in which making things does not confer much value, is based upon a fundamental misreading of history. We have always lived in a knowledge economy. It has always been the quality of knowledge involved, rather than the physical nature of the things produced (that is, whether they are physical goods or intangible services), that has made the more industrialized countries richer. This point can be seen more clearly if you recall that woollen manufacturing, which used to be one of the most hi-tech sectors until the eighteenth century, is now one of the lower-tech sectors.

Many economists have argued that, with rising income, we begin to demand services, such as eating out and foreign holidays, relatively more than we demand manufactured goods. The resulting fall in the relative demand for manufacturing leads to a shrinking role for manufacturing, reflected in lower output and employment shares. This view got a boost in the 1990s, with the invention of the worldwide web and the alleged rise of the ‘knowledge economy’. Many argued that the ability to produce knowledge, rather than things, was now critical, and high-value knowledge-based services, such as finance and management consulting, would become the leading sectors in the rich countries that were experiencing deindustrialization. The manufacturing industry – or the ‘bricks and mortar’ industry – was viewed as second-rate activity that could be shifted to cheap-labour developing countries, such as China.

And in terms of the latter effect, the importance of the manufacturing sector cannot be over-emphasized, as it has been the main source of new technological and organizational capabilities over the last two centuries. Unfortunately, with the rise of the discourse of post-industrial society in the realm of ideas and the increasing dominance of the financial sector in the real world, indifference to manufacturing has positively turned into contempt. Manufacturing, it is often argued, is, in the new ‘knowledge economy’, a low-grade activity that only low-wage developing countries do. But factories are where the modern world has been made, so to speak, and will keep being remade. Moreover, even in our supposed post-industrial world, services, the supposed new economic engine, cannot thrive without a vibrant manufacturing sector. The fact that Switzerland and Singapore, which many people consider to be the ultimate examples of successful service-led prosperity, are actually two of the three most industrialized countries in the world (together with Japan) is a testimony to this.


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Revolution in the Age of Social Media: The Egyptian Popular Insurrection and the Internet by Linda Herrera

citizen journalism, crowdsourcing, Google Earth, informal economy, Julian Assange, knowledge economy, minimum wage unemployment, Mohammed Bouazizi, moral panic, Nelson Mandela, Occupy movement, RAND corporation, Rosa Parks, Silicon Valley, Skype, Slavoj Žižek, WikiLeaks

Liberalization Egyptian Style The Egyptian government, historically reluctant to allow the spread of technologies that would loosen its grip on its citizenry, nevertheless opened its doors to information and communication technologies (ICT) and the liberalization of the media. The transition to an “information society,” otherwise called a “knowledge economy,” came about through a combination of pressure and opportunity. The countries of the Organisation for Economic Cooperation and Development (OECD), the United Nations, the World Bank, and the International Monetary Fund (IMF) tied any number of loans and trade agreements to Egypt’s willingness to sync its national economy with the knowledge economy in which OECD countries held a clear advantage. At the same time, an ICT-driven economy would allow Egypt to more fully participate in the global marketplace, with its promise of profits and economic growth. As video games, satellite dishes, mobile phones, and the internet became more important to Egyptian society, these technologies did indeed bring a vigorous boost to the economy.

., 23–4, 32–33, 35–7 Google, 5, 24, 30–1, 35, 43, 63, 105 employees of, xi, 1, 2, 38, 44, 54, 72 Google Ideas, 1, 2, 44, 147 Guevara, Che, 157–8 Hardt, Michael, 5 Hegazy, Safwat, 126 Homeland Security, 35 Hoover Institute, 35 Howcast Media, 24, 38–9, 44, 53 Hughes, Karen, 30 human rights, 42, 46, 49, 56, 63, 87, 103–4 activists, 21, 31, 110 blogging and, 39 Hussien, Nermin, 133 ICQ, 13 See also chat rooms ideology, 19, 53, 75, 143, 145, 146 anti-, 149, 154, 158 dominant, 155 mechanisms of, 116, 156, 159 pan-Islamic, 121 Ikhwanbook, 127 Ikhwantube, 127 Ikhwan Twitter, 127 Ikhwanwiki, 127 information society, 6, 103, 104 International Atomic Energy Agency (IAEA), 63 See also ElBaradei, Mohamed International Monetary Fund (IMF), 7 International Republican Institute, 34 internet freedom, 40–3, 46, 82, 148 Intifada (second), 17 Iran, 18, 23, 39, 153 Green Movement, 35, 39–41 State Department and, 43 technology and, 23 youth, 33 Ismailia, 114, 121 Israel, 2, 8, 13, 14 Israelis, 13 Al Jazeera, 9, 68, 77, 81, 86, 101–3 Al Jazeera Mubasher, 101–2, 122 Jihad, 33, 52, 63 Johnson, Steven, 145 el-Kabir, Emad, 21, 152–3 Kefaya, 19–20, 21, 60, 80, 86 See also The Egyptian Movement for Change Khaled, Amr, 80 King, Martin Luther Jr., 34, 88 knowledge economy, 7 Kristy, 133 Kulina Khaled Said. See “We Are All Khaled Said” Kulina Leila. See “We Are All Leila” Lakoff, George, 125 Leisure Time (Awqat Faragh), 4 Liebman, Jason, 38, 44 MacKinnon, Rebecca, 42 Maher, Ahmed, 22, 38 Malcolm X, 88–9 Mandela, Nelson, 99 Mansour, AbdelRahman, 72, 79–98, 111, 148–9 Mansoura, 20, 65, 80, 114 Marovic, Ivan, 34 El Masry, Mohamed, 133 Mazzini, Guiseppe, 25 Media Hubs, 30 memes, 115–17, 135, 137, 141, 153 Middle East Partner Initiative (MEPI), 29–30, 44 military, 3, 26, 35 in Egypt, 37, 87, 146, 155–6 Egyptian counter-revolution and, 137–41 Elbaradei and, 85 Mubarak and, 119–20 US, 147 See also SCAF Milosovic, Slobodan, 34 mindquake, 18, 84 Ministry of Interior, 48, 97, 112, 113 See also al-Adly, Habib mobile phones, 7, 10, 12, 13, 21, 145 Mobinil, 10 Mohamed Mahmoud Street, 75, 132, 150–1 Molotov Cola, 133 Morales, Oscar, 35, 45, 99 Morozov, Evgeny, 40, 43, 44 Morsi, Amr, 133 Morsi, Mohamed, 102, 120–3, 126, 128–33, 136–7, 140 and AbdelRahman Mansour, 82 MTV, 24, 36 Mubarak regime, 96, 102, 125, 147, 155 censorship and, 115 electronic militias of, 30, 117–120 resistance to, 3, 18–20, 60, 77–81, 87–8 fall of, 74 post-, 126–7 US government and, 37, 83 violence of, 92, 134, 137 mummy, 151–2 Muslim Brotherhood, 96, 110, 124, 126–40, 146, 156 AbdelRahman Mansour and, 77, 80, 82, 86 Al Jazeera and, 102 defectors, 77, 82 e-militias, xi, 117, 120–5, 131 resistance to, 3 on women, 15 The Change (Al Taghrir) and, 18 youth, 123 Nadim Center for Human Rights, 63 al-Nahda Square, 137 Nasser, Gamal Abdel, 19, 95, 124 National Association for Change, 63, 84 See also Mohamed ElBaradei National Democratic Party, 119 National Endowment for Democracy (NED), 34 Near East Regional Democracy Program (NERD), 41–2 Negri, Antonio, 5 nongovernmental organization (NGO), 29, 127, 147 Nour, Ayman, 20–1, 50 Nye, Joseph S.


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The Refusal of Work: The Theory and Practice of Resistance to Work by David Frayne

anti-work, basic income, Bertrand Russell: In Praise of Idleness, call centre, clockwatching, David Graeber, deindustrialization, deskilling, future of work, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Kickstarter, knowledge economy, knowledge worker, low skilled workers, McJob, means of production, moral panic, new economy, post-work, profit motive, Silicon Valley, Silicon Valley ideology, Skype, unpaid internship, working poor, young professional

If Marxist critics believed that industrial work had stifled the worker’s capacities, things changed in the second half of the twentieth century when many commentators greeted the developing era of post-industrial work with a degree of fanfare. Futurologists forecasted the advent of a new ‘knowledge economy’, which would see a shift away from the standardised manual work of old, towards a higher concentration of smart jobs in the service and computer-based industries (Bell, 1973). Now a political orthodoxy, the notion of a new ‘knowledge economy’ was first celebrated by economists and sociologists in the 1960s, when it was generally believed that the future prosperity of nations would depend on their ability to produce intelligent, knowledgeable workers for a new era of work. Post-industrial forms of employment would help reintroduce the ‘human factor’ into work, and jobs would no longer simply be about efficiency and obeying orders; they would draw on the more distinctively human qualities such as social competence, cognitive ability, practical experience, or consciousness of responsibility, offering workers new opportunities to feel morally invested in their work (Offe, 1985: 137–8).

Post-industrial forms of employment would help reintroduce the ‘human factor’ into work, and jobs would no longer simply be about efficiency and obeying orders; they would draw on the more distinctively human qualities such as social competence, cognitive ability, practical experience, or consciousness of responsibility, offering workers new opportunities to feel morally invested in their work (Offe, 1985: 137–8). With the benefit of hindsight, some commentators have seen fit to question these claims about the transition to a burgeoning knowledge economy (Thompson et al., 2001). Whilst the statistical proportion of jobs in service or information-based industries has undoubtedly increased, we need to be cautious about accepting this trend as evidence of a shift towards a more humane, highly skilled world of work (see Fleming et al., 2004). Occupational categories do not tell us all there is to know about the ways that particular forms of work are experienced, and the statistics fail to communicate the more mundane and miserable aspects of many modern jobs.

., 93 GDP, critiqued as indicator of progress, 3, 223 Generation X, 114 Genesis, Book of, 23 Gerald, a former academic, 151, 177, 178, 180, 193–4 Germany, 35-hour week in, 224 gestural type of rebellion, 214 Goffman, Erving, 192, 200, 204, 212 Goodman, Eleanor, 157 Google, offices of, 59 Gorz, André, 2, 19–20, 35–41, 43, 61, 62, 67, 74, 82, 90–1, 92, 115–16, 149–50, 151, 178, 179, 184–5, 217, 220–1 Gothenburg (Sweden), shorter working day in, 224 graduates, disillusionment of, 146 Graeber, David, 40 Granter, Edward, 112 gratifying work see satisfying work gratitude, culture of, 232 Greece: ancient, work regarded as curse, 23–4; sea turtle rescue project, 181 Green Party (UK): Basic Income policy, 226; policy on reducing working hours, 224 Gregg, Melissa, 72, 218 growth, economic, 43, 44, 236; critique of, 3–4, 6 Guinness beer, marketing of, 87 H Haiven, Max, 231 Hank, a brothel client, 55 ‘hardworking people’, reference to, 99 Harmony, a utopian society, 31 having, mode of being, 79, 166 Hayden, Anders, 39 Health and Safety Executive (UK), 148 hedonism, alternative, 116, 162–3, 168, 187 ‘Hephaestus’ company, 56–7 high-commitment work cultures, 57 hobbies, use of term, 70 Hochschild, Arlie, 52, 137; The Managed Heart, 53–4; The Outsourced Self, 67 Hodgkinson, Tom, How To Be Idle, 206 holidays, entitlement to, 139 homes, atmosphere of, 184–5 Honneth, Axel, 193 honour, 193 Horkheimer, Max, 81 humanisation of working day, 61 Humphery, Kim, 90 Hunnicutt, Benjamin, Work Without End, 82–5, 96–7 hygiene, Gorz’s definition of, 149–50 I identification with job roles, 62 identity, linked to work, 14–15, 27 idleness, morally objectionable, 83 idler: synonyms for, 189; use of term, 120 Idlers’ Alliance, 118–19, 122, 206, 207, 234 idling, concept of, 234 Illich, Ivan, 185–6 illness, 148, 196–7; has a meaning, 149; medical diagnosis of, 197; mental, 152; need for justification of, 202; non-suppression of, 150–1; repoliticisation of, 229 imagination, defending the importance of, 235–7 immaterial labour, 56 immaturity, perceived, 197–8 ‘in between jobs’, 202 inclusion, social, 161 income: alternative sources of, 161; management of, 121; to be decoupled from work, 112 indifference in work, 47–52 inner critic, 203 insecurity, 73–4 interiority, loss of, 81 International Labour Organisation (ILO), 42, 68 internships, unpaid, 81 interviews: limitations of, 121; methodology of, 118–19 intimacy of work, 52–61 Italian Autonomist movement, 1–2 J Jack, a former librarian, 122–4, 170 Jackson, Tim, 43 Jahoda, Marie, 106, 137 James, Selma, 115 Jarrett, Joanna, 199 job application forms, 76 job centres, 201 job competition, globalisation of, 42 job creation, 6 job insecurity, 6 joblessness, voluntary, in USA, 124–5 Jobseeker’s Allowance, 104, 134, 136 July, Miranda, 189 junk commodities, accumulation of, 170 K Kelley, Robin, 115 Kelvin, Peter, 199 Kerouac, Jack, 206 Kerr, Walter, The Decline of Pleasure, 173 Kettering, Charles, 85 Keynes, John Maynard, 33–5, 68, 82, 84; ‘Economic Possibilities for Our Grandchildren’, 33 Khasnabish, Alex, 231 knowledge economy, 49, 61 L labour exchanges, regulate casual labouring, 28 labour habits, new, formation of, 29 labour market, pressure of, 80 Labour Party (UK), 5 ‘labourers without labour’, 39, 41 Lafargue, Paul, The Right To Be Lazy, 21 laptops, 72 Larry, a former social worker, 120, 131–4, 137, 175 Lazarsfeld, Paul, 204 laziness, alleged culture of, 100 Learning to Love You More project, 189 Lefkowitz, Bernard, 124–5 Lego Movie, The, 71–2 leisure: as privilege for all, 95; fear of, 111; promotes consumption, 84 leisure time, shortage of, 68 less work see working less Levitas, Ruth, 235 Lewis, Justin, 85 life plans, 210 Linder, Staffan, 173–4, 177 living in a community, 144 living with intention, 128 living with less, as empowerment, 180 living without work, 21–3, 117, 119, 141 Lodziak, Conrad, 89 looking after pets, 195 ‘looking over one’s shoulder’, 76 loss of income, personal consequences of, 109 low-wage work, 6 lowering levels of spending, 171 Lucy, a former bargain shop worker, 127, 134–8, 151, 153, 159, 167, 174–5, 177, 183, 186, 194, 195, 198, 205–6 Lynx deodorant, marketing of, 87 M Marcuse, Herbert, 8, 35; Eros and Civilisation, 34; One-Dimensional Man, 26 Marienthal, sociological research into, 106–8, 110 Markland, George L., 97 Marx, Karl, 26, 30, 46, 85, 106, 116, 125, 142, 143, 147, 148; Capital, 32, 47, 114; Economic and Philosophical Manuscripts of 1844, 47–8; views on technology, 32, 33; views on work, 17–18, 32 material objects, connection to, 183 material wealth, desire for, 27 Matthew, a former office worker, 13, 58, 134–8, 141, 142–4, 146–7, 159, 169, 174, 177, 183, 186, 194, 201, 202, 205–6 maturity, definition of, 198 McDonald’s, 167, 213 ‘McJobs’, 114 McKenna, S., 109 McShit T-shirt, 213 Mead, George Herbert, 203 mealtimes see eating together meaningfulness in work, 63 meaningless work, 12–13, 22, 40 medication, rejection of, 150–1 Merton, Robert, 146 Mike, an interviewee, 124, 130, 165 Mills, C.


Britannia Unchained: Global Lessons for Growth and Prosperity by Kwasi Kwarteng, Priti Patel, Dominic Raab, Chris Skidmore, Elizabeth Truss

Airbnb, banking crisis, Carmen Reinhart, central bank independence, clockwatching, creative destruction, Credit Default Swap, demographic dividend, Edward Glaeser, eurozone crisis, fear of failure, glass ceiling, informal economy, James Dyson, Kenneth Rogoff, knowledge economy, long peace, margin call, Mark Zuckerberg, Martin Wolf, megacity, Mexican peso crisis / tequila crisis, Neil Kinnock, new economy, North Sea oil, oil shock, open economy, paypal mafia, pension reform, price stability, profit motive, Ronald Reagan, Sand Hill Road, Silicon Valley, Stanford marshmallow experiment, Steve Jobs, Walter Mischel, wealth creators, Winter of Discontent, working-age population, Yom Kippur War

Chapter 5, entitled ‘Buccaneers’, is a wider exploration of the nature of business innovation and entrepreneurial drive. In this chapter the achievements of Israel, perhaps surprisingly to some, are celebrated in the area of science and technology. Israel has shown how venture capital can be attracted into exciting areas. This capital is particularly supportive of technological innovation and businesses which rely on what is sometimes called ‘the knowledge economy’. Through the application of science and business acumen, exciting commercial opportunities often arise. Overshadowed by political concerns, Israel remains an underappreciated hub of scientific innovation. By contrast, it is a commonly observed feature of modern Britain that the state and bureaucracy have become more entrenched over the last decade. There is a feeling that initiative and individual enterprise have been stifled by an obsession with rules, regulations and ‘health and safety’.

House of Lords Science and Technology Sub-Committee, ‘Call for Evidence: Higher Education in STEM Subjects’, Submission by the Council for the Mathematical Sciences (15 December 2011). 97. http://articles.timesofindia.indiatimes.com/2011-03-29/chennai/29357309_ 1_iit-m-m-s-ananth-iit-madras 98. Royal Society, Knowledge, Networks and Nations: Global Scientific Colloboration in the 21st Century (2011). 99. D. Autor, The Polarization of Job Opportunities in the U.S. Labor Market: Implications for Employment and Earnings (Center for American Progress and the Hamilton Project, 2010). 100. Ian Brinkley, Manufacturing and the Knowledge Economy (The Work Foundation, 2009). 101. Elizabeth Truss, Academic Rigour and Social Mobility: How Low Income Students are being Kept Out of Top Jobs (CentreForum, 2011). 102. Jonathan Adams and James Wilsdon, The New Geography of Science: UK Research and International Colloboration (Demos, 2006). 103. Royal Society, Knowledge, Networks and Nations. 104. Royal Society, Knowledge, Networks and Nations. 105. http://www.nytimes.com/2012/01/22/business/apple-america-and-asqueezed-middle-class.html?

., Angela Redish and Hugh Rockoff, Why Didn’t Canada have a Banking Crisis in 2008 (or in 1930, or in 1907, or in 1983) (2010). Bourgon, Jocelyn, Program Review: The Government of Canada’s Experience Eliminating the Deficit, 1994–99: A Canadian Case Study (Institute for Government, 2009). Bradshaw, Jenny, et al., PISA 2009: Achievement of 15-Year-Olds in England (NFER, 2010). Brinkley, Ian, Manufacturing and the Knowledge Economy (The Work Foundation, 2009). BVCA, Benchmarking UK Venture Capital to the US and Israel: What Lessons can be Learned? (2009). Cato Institute, Economic Freedom of the World (2011). CBI, Action for Jobs (2011). Centre for Social Justice, Breakdown Britain (2006). Centre for Social Justice, Breakthrough Britain (2007). Centre for Social Justice, Creating Opportunity, Rewarding Ambition (2011).


pages: 319 words: 89,477

The Power of Pull: How Small Moves, Smartly Made, Can Set Big Things in Motion by John Hagel Iii, John Seely Brown

Albert Einstein, Andrew Keen, barriers to entry, Black Swan, business process, call centre, Clayton Christensen, cleantech, cloud computing, commoditize, corporate governance, creative destruction, disruptive innovation, Elon Musk, en.wikipedia.org, future of work, game design, George Gilder, intangible asset, Isaac Newton, job satisfaction, Joi Ito, knowledge economy, knowledge worker, loose coupling, Louis Pasteur, Malcom McLean invented shipping containers, Maui Hawaii, medical residency, Network effects, old-boy network, packet switching, pattern recognition, peer-to-peer, pre–internet, profit motive, recommendation engine, Ronald Coase, shareholder value, Silicon Valley, Skype, smart transportation, software as a service, supply-chain management, The Nature of the Firm, the new new thing, too big to fail, trade liberalization, transaction costs

Here they share experiences, tell stories, celebrate (and analyze) prodigious achievements within the game, and explore innovative approaches to addressing the challenges at hand. Although a few of these forums are officially sponsored by the game designer, most of them have emerged spontaneously, organized by participants seeking access to more advice and insight regarding the challenges they face in the game. This “knowledge economy” is impressively large: In the United States alone, the official forums hosted by Blizzard Entertainment contain tens of millions of postings in hundreds of forums. There are an equal number in China and Europe.16 By providing the most up-to-date in-game information, this knowledge economy gives players a hedge against the ways in which World of Warcraft is constantly changing, allowing them to keep pace with their unpredictable in-game surroundings. As they do so, most advanced players make use of customized performance “dashboards” created either by themselves or other players.

See Myanmar (Burma) Saffron Revolution The Burning Crusade WoW release Business Process Expert (BPX) Community Canguu, Bali Cannon, Walter Carbon war room Cash-for-clunkers initiative ccMixter Chandler, Alfred Change as accelerating with growth initiatives, talent development in and of institutions as opportunity to motivate, mobilize, others with perceptions of fears, risk three phases with trajectory of passion, talent, growth Chief Culture Officer (McCracken) China as geographic edge-transforms-core example geographic spikes in knowledge economy of WoW Christensen, Clayton Cisco Clark, Jeff Clockspeed Cloud computing The Cluetrain Manifesto (Levine and others) Coase, Ronald Collaboration cross-team, for designing creation spaces mindset scalable sustained Collaboration curves defined, described exist as WoW players improve performance institutions reoriented around for mobilizing distributed resources and performance results creating virtuous cycles COMDEX Comfort zones Companies.

See Change; Innovations Institutional innovation catalyzed by passionate individuals by a few 20th century leaders hoped to be created by Markle Task Force needed for shaping strategies as third wave transforming challenges into opportunities Institutional platforms amplifying employee networks focusing on needs of others for talent development Institutions amplifying employees’ passions, creativity amplifying power of pull amplifying through IT investments amplifying through mindset being pulled from the top elements of journey toward pull ig with growth strategies using pull-based models motivating employees to improve performance participating in conference strategies participating in geographic spikes push programs described redefining scalable learning rationale viability of Intel Interaction leverage through shaping platforms Internet as edge-transforms-core example Internet Relay Chat iPhone communications technology iPod Iranian protests of 2009 cellphone videos go viral personal online networks mobilized Irons, Andy Irons, Bruce IT architectures, outside-in IT investments exception handling using edge participants related to scalable push ideas Ito, Joichi (Joi) as moving out of comfort zones personal benefits from social network in selected virtual environments social networks amplify success of others supports Iranian protestors with personal network iTunes platform Journey toward pull elements introduced maps with elementsig Joy, Bill Just-in-time manufacturing philosophy Kagermann, Henning Kaminsky, Dan Key players in shaping strategies Kinoshita, Matt Knowledge, explicit versus tacit Knowledge economy Knowledge flows access through shaping platforms compared to, moving from, knowledge stocks fig on the edge as filters for relevant information of passionate employees in personal lives, creating new knowledge tacit versus explicit Knowledge workers artificially distinguished from workforce performance improvement for Kustom Air Strike Labor unions Larsen brothers Lean manufacturing Learning organization approaches Lemmey, Tara Leschziner, Vanina Leverage based on capabilities vs. financial as element of journey toward pull igigig growth driven by pull platforms for/from passionate, talented, individuals in institutions as shaping, extending, personal ecosystems as shaping platform Levine, Rick Levy, Ellen Li & Fung global network Linear Technologies LinkedIn Listening skills.


pages: 336 words: 90,749

How to Fix Copyright by William Patry

A Declaration of the Independence of Cyberspace, barriers to entry, big-box store, borderless world, business cycle, business intelligence, citizen journalism, cloud computing, commoditize, creative destruction, crowdsourcing, death of newspapers, en.wikipedia.org, facts on the ground, Frederick Winslow Taylor, George Akerlof, Gordon Gekko, haute cuisine, informal economy, invisible hand, Joseph Schumpeter, Kickstarter, knowledge economy, lone genius, means of production, moral panic, new economy, road to serfdom, Ronald Coase, Ronald Reagan, semantic web, shareholder value, Silicon Valley, The Chicago School, The Wealth of Nations by Adam Smith, trade route, transaction costs, trickle-down economics, winner-take-all economy, zero-sum game

Socrates thought the unexamined life not worth living.2 Selfexamination occurs only if we rigorously inquire into our habits, including habits of mind. Among the habits of mind this book examines are the fundamental beliefs that copyright laws directly cause people to create works they wouldn’t otherwise create, directly put substantial money in authors’ pockets; that culture depends on copyright; and, more recently, that copyright law is a key driver of competitiveness and of the knowledge economy. 2 HOW TO FIX COPYRIGHT Do copyright laws cause these wonderful things to come true in real life and not just in our beliefs? Simply believing things will happen isn’t enough. If we want wonderful things to come true (and who doesn’t?) we must do more than believe that they will; we must ensure they do. Ensuring they do requires, at a minimum, that copyright laws are consistent with prevailing markets and technologies.

In 2009, KEA, a Brussels-based consultancy group, prepared a report for the European Commission159 questioning the asserted link between creativity and competitiveness: “[T]raditionally, culture is not seen as a motor for better management or for honing a competitive edge in product development, learning or human resources.”160 In Europe (and many other regions), for example, there is intensive competition and innovation in developing cuisines, the recipes for which are not protected by copyright.161 Yet, despite occasional calls for such rights,162 chefs continue to innovate, much to diners’ delight. Just as the shift from the cultural industries to the creative industries led to a shift away from the expressive nature of authors’ and artists’ contributions and toward commodity sales, so too culture is now seen as merely another aspect of the “knowledge economy,”163 judged by how it performs in an invisible hand marketplace. But you can’t economically measure how an increase in knowledge will lead to productivity gains. If we want more creative works and more knowledgeable citizens, we will have to disassociate these goals from commodity markets, and focus on why people create and learn. We must then be willing to commit public monies to their encouragement where market forces have proved inadequate to the task.

Communication from the Commission to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions: A Single Market for Intellectual Property Rights 294 NOTES TO PAGES 127–131 Boosting creativity and innovation to provide economic growth, high quality jobs and first class products and services in Europe, Provisional Version, May 2011. (“Single Market communication”). 158. This is not the only incomprehensible foundational remark made by the Commission in its Single Market communication. On page three the Commission states: IPR are property rights that protect the added value generated by Europe’s knowledge economy on the strength of its creators and investors.” I have no idea what this means. 159. “The Impact of Culture on Creativity” (June 2009), available at: http://www.keanet.eu/en/impactcreativityculture.html. 160. Report at 21. 161. See U.S. Copyright From Letter 122, available at: http://www. copyright.gov/fls/fl122.html. 162. See Who Owns the Korean Taco?, NY Times, July 2, 2010, available at: http://freakonomics.blogs.nytimes.com/2010/07/02/whoowns-the-korean-taco/; Tania Su Li Cheng, “Copyright protection of haute cuisine: recipe for disaster?


pages: 219 words: 61,720

American Made: Why Making Things Will Return Us to Greatness by Dan Dimicco

2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, Affordable Care Act / Obamacare, American energy revolution, American Society of Civil Engineers: Report Card, Bakken shale, barriers to entry, Bernie Madoff, carbon footprint, clean water, crony capitalism, currency manipulation / currency intervention, David Ricardo: comparative advantage, decarbonisation, fear of failure, full employment, Google Glasses, hydraulic fracturing, invisible hand, job automation, knowledge economy, laissez-faire capitalism, Loma Prieta earthquake, low earth orbit, manufacturing employment, oil shale / tar sands, Ponzi scheme, profit motive, Report Card for America’s Infrastructure, Ronald Reagan, Silicon Valley, smart grid, smart meter, sovereign wealth fund, The Wealth of Nations by Adam Smith, too big to fail, uranium enrichment, Washington Consensus, Works Progress Administration

And for the United States to be a major exporter in the world, it requires a trading system that can effectively police what he calls “predatory, mercantilistic trading practices,” such as the illegal dumping3 of steel and other commodities coming into the country. DiMicco’s refreshing heterodoxy isn’t limited only to trade. In chapter 6, he takes aim at the prevailing conventional wisdom surrounding the so-called knowledge economy and the skills gap, which was a prominent issue in the 2012 presidential debates. While innovation is important—crucial, in fact—DiMicco posits that it is not enough to generate real economic growth. And the fact is, more often than not, the supposed value created in the knowledge economy doesn’t stay in the United States. “It’s no accident that just as manufacturing has moved offshore, our research and development is now following,” he says. “If we use a little common sense, we’ll quickly realize that if the United States doesn’t make what it innovates, soon enough we’ll lose our ability to innovate, too.”

It’s what enables our businesses to grow, create new products and services, and generate new jobs.”2 “Ultimately, to create manufacturing jobs, we’ve got to be innovating,” says General Electric CEO Jeffrey Immelt.3 On the other hand, Larry Summers, who served as one of Obama’s closest economic advisers, has said, “America’s role is to feed a global economy that’s increasingly based on knowledge and services rather than on making stuff.”4 And Gary Shapiro, the president and CEO of the Consumer Electronics Association, says flatly, “Innovation, not manufacturing, will bring jobs.”5 So which is it? Can the United States be an innovator without manufacturing? Or do the two go hand in hand? Is it enough for the United States to focus on building a knowledge economy that fosters innovation? No. Sorry, but innovation alone is worth nothing. Platitudes about innovation are worth even less. As solutions go, if you think innovation is going to save us, you’re dreaming. You simply can’t sustain a diverse, vibrant, large-scale economy like that of the United States on innovation alone. Look, there are no magic bullets. Not all innovation translates into jobs.


pages: 411 words: 95,852

Britain Etc by Mark Easton

agricultural Revolution, Albert Einstein, Boris Johnson, British Empire, credit crunch, financial independence, garden city movement, global village, Howard Rheingold, income inequality, intangible asset, James Watt: steam engine, knowledge economy, knowledge worker, low skilled workers, mass immigration, moral panic, Ronald Reagan, science of happiness, sexual politics, Silicon Valley, Simon Kuznets, Slavoj Žižek, social software

With low-skilled jobs disappearing and knowledge jobs expanding, it is obvious that the UK needs to invest in knowledge, to educate and train its workforce. Britain has a higher proportion of NEETs – young people not in education, employment or training – than any other OECD country except Greece, Italy, Mexico and Turkey. The credit crunch only served to magnify the point. Unemployment figures in the depths of the recession showed that among those working in the knowledge economy – financial consultants, business managers, lawyers – the proportion claiming jobseeker’s allowance was 1 per cent. Among those who usually worked in unskilled admin jobs, the figure was 37 per cent. And for those without skills, matters are only going to get worse. Much worse. Globalisation doesn’t just open up new markets; it is bringing an estimated 42 million new people into the international jobs market every year – and most of those are unskilled.

For each Briton who graduates there are at least twenty Chinese and Indian graduates jostling for work in the global marketplace. Not every Indian degree is equivalent to a degree from Oxford or Cambridge. But then not every British degree is either. The noisy arguments over higher university tuition fees in England have tended to drown out the really critical point: higher education is a product in the global knowledge economy and price is a factor of supply and demand. Domestic students still get a subsidised rate, albeit not quite as generous a subsidy as previously, but the real revolution has been that UK institutions have begun directly competing with each other to sell their courses. At the same time, their student customers have been encouraged to become increasingly canny shoppers. A glance at the fees charged to overseas students has become a quick way of judging whether British undergraduates are getting a bargain or not.

Bloom puts ‘evaluation’ at the very top – the ability to present and defend opinions about information based on evidence, the bedrock of academia. But his model has been revised in recent years, taking into account the most valued knowledge skills. The new taxonomy has at its peak ‘synthesis’: the ability to take elements of the previous steps and use them to create new knowledge. Synthesis is the pinnacle – people who can synthesise are virtual gods in the knowledge economy, the most sought after talents in the globalised twenty-first century. British success in the new age is going to depend on workers who have knowledge and understanding, but also the ability to analyse and evaluate and synthesise information and ideas from multiple sources all at the same time. They will be individuals unrestricted by a single narrative. And what do such people look like?


pages: 208 words: 67,582

What About Me?: The Struggle for Identity in a Market-Based Society by Paul Verhaeghe

Berlin Wall, call centre, cognitive dissonance, deskilling, epigenetics, Fall of the Berlin Wall, Francis Fukuyama: the end of history, income inequality, invisible hand, jimmy wales, job satisfaction, knowledge economy, knowledge worker, Louis Pasteur, market fundamentalism, Milgram experiment, new economy, Panopticon Jeremy Bentham, post-industrial society, Richard Feynman, Silicon Valley, Stanford prison experiment, stem cell, The Spirit Level, ultimatum game, working poor

This benefits society as a whole because competition entails everyone doing their best to come out on top. As a result, we get better and cheaper products and more efficient services within a single free market, unhampered by government intervention. This is ethically right because success or failure in that competition depends entirely on individual effort. So everyone is responsible for their own success or failure. Hence the importance of education, because we live in a rapidly evolving knowledge economy that requires highly trained individuals with flexible competencies. A single higher-education qualification is good, two is better, and lifelong learning a must. Everyone must continue to grow because competition is fierce. That’s what lies behind the current compulsion for performance interviews and constant evaluations, all steered by an invisible hand from central management. This is a brief summary of the grand narrative that controls our culture today and that consequently forms our identity.

The teachers who are there to guide their early steps often feel failures themselves because they are only lowly primary-school teachers, right at the bottom of the Niagara Falls of educational diplomas — unless, of course, they work at a top school with top pupils. Many people will acknowledge that the system is flawed, yet at the same time see no alternative. Surely competency-based education is crucial to the success of a knowledge economy? The simple answer is: no, it isn’t. As anyone with long-term teaching experience knows, the last few decades have seen a serious and universal decline in the standard of education. Despite the stress on competencies, this doesn’t just mean that pupils are less well-equipped in terms of cultural baggage. Basic skills such as reading, writing, and arithmetic have suffered equally. In today’s economy this hardly constitutes a problem, because most professionals, from doctors to carpenters, need less knowledge than formerly.

Financial stimuli increase motivation only in jobs that don’t involve any thought. As soon as thinking is involved, especially creativity, intrinsic motivation proves far more effective. In fact, in such cases extrinsic motivation — that’s to say, bonuses — has a negative effect, causing people to perform worse than those who are intrinsically motivated. In this region of the world, where the focus is on the knowledge economy, the majority of jobs fall into the second category. Jobs that entail little thought — for example, conveyor-belt work, are largely a thing of the past. In that sector, bonuses do have a positive effect, but ironically enough are rarely awarded. So politicians and captains of industry have everything to gain by dismantling the extrinsic-motivation model as fast as possible. Introducing intrinsic motivation becomes even more of a priority when one considers that the current system of bonuses heightens income inequality — an inequality that has been linked to almost every kind of negative psychosocial effect.


pages: 235 words: 62,862

Utopia for Realists: The Case for a Universal Basic Income, Open Borders, and a 15-Hour Workweek by Rutger Bregman

autonomous vehicles, banking crisis, Bartolomé de las Casas, basic income, Berlin Wall, Bertrand Russell: In Praise of Idleness, Branko Milanovic, cognitive dissonance, computer age, conceptual framework, credit crunch, David Graeber, Diane Coyle, Erik Brynjolfsson, everywhere but in the productivity statistics, Fall of the Berlin Wall, Francis Fukuyama: the end of history, Frank Levy and Richard Murnane: The New Division of Labor, full employment, George Gilder, George Santayana, happiness index / gross national happiness, Henry Ford's grandson gave labor union leader Walter Reuther a tour of the company’s new, automated factory…, income inequality, invention of gunpowder, James Watt: steam engine, John Markoff, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Kevin Kelly, Kickstarter, knowledge economy, knowledge worker, Kodak vs Instagram, low skilled workers, means of production, megacity, meta analysis, meta-analysis, microcredit, minimum wage unemployment, Mont Pelerin Society, Nathan Meyer Rothschild: antibiotics, Occupy movement, offshore financial centre, Paul Samuelson, Peter Thiel, post-industrial society, precariat, RAND corporation, randomized controlled trial, Ray Kurzweil, Ronald Reagan, Second Machine Age, Silicon Valley, Simon Kuznets, Skype, stem cell, Steven Pinker, telemarketer, The Future of Employment, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, Tyler Cowen: Great Stagnation, universal basic income, wage slave, War on Poverty, We wanted flying cars, instead we got 140 characters, wikimedia commons, women in the workforce, working poor, World Values Survey

And while young people in the West have largely come of age in an era of apolitical technocracy, we will have to return to politics again to find a new utopia. In that sense, I’m heartened by our dissatisfaction, because dissatisfaction is a world away from indifference. The widespread nostalgia, the yearning for a past that never really was, suggests that we still have ideals, even if we have buried them alive. True progress begins with something no knowledge economy can produce: wisdom about what it means to live well. We have to do what great thinkers like John Stuart Mill, Bertrand Russell, and John Maynard Keynes were already advocating 100 years ago: to “value ends above means and prefer the good to the useful.”31 We have to direct our minds to the future. To stop consuming our own discontent through polls and the relentlessly bad-news media. To consider alternatives and form new collectives.

In the 1980s, Apple employees sported T-shirts that read, “Working 90 hours a week and loving it!” Later, productivity experts calculated that if they had worked half the hours then the world might have enjoyed the groundbreaking Macintosh computer a year earlier.35 The correlation between working hours and productivity in wealthy countries, 1990–2012 Source: OECD There are strong indications that in a modern knowledge economy, even 40 hours a week is too much. Research suggests that someone who is constantly drawing on their creative abilities can, on average, be productive for no more than six hours a day.36 It’s no coincidence that the world’s wealthy countries, those with a large creative class and highly educated populations, have also shaved the most time off their workweeks. The Solution to (Almost) Everything Recently, a friend asked me: What does working less actually solve?

The foremost reason for this is simple: Labor is becoming less and less scarce. Technological advances are putting the inhabitants of the Land of Plenty in direct competition with billions of working people across the world, and in competition with machines themselves. Obviously, people aren’t horses. There’s only so much you can teach a horse. People, on the other hand, can learn and grow. So we pump more money into education and give three cheers for the knowledge economy. There’s just one problem. Even people with a framed piece of paper on their wall have cause for concern. William Leadbeater was well trained in his job when it was supplanted by a mechanized loom in 1830. The point is not that he wasn’t educated, but that suddenly his skills were superfluous. This is an experience awaiting more and more people. “In the end, I will venture to say, it will be the destruction of the universe,” William warned.


pages: 406 words: 109,794

Range: Why Generalists Triumph in a Specialized World by David Epstein

Airbnb, Albert Einstein, Apple's 1984 Super Bowl advert, Atul Gawande, Checklist Manifesto, Claude Shannon: information theory, Clayton Christensen, clockwork universe, cognitive bias, correlation does not imply causation, Daniel Kahneman / Amos Tversky, deliberate practice, Exxon Valdez, Flynn Effect, Freestyle chess, functional fixedness, game design, Isaac Newton, Johannes Kepler, knowledge economy, lateral thinking, longitudinal study, Louis Pasteur, Mark Zuckerberg, medical residency, meta analysis, meta-analysis, Mikhail Gorbachev, Nelson Mandela, Netflix Prize, pattern recognition, Paul Graham, precision agriculture, prediction markets, premature optimization, pre–internet, random walk, randomized controlled trial, retrograde motion, Richard Feynman, Richard Feynman: Challenger O-ring, Silicon Valley, Stanford marshmallow experiment, Steve Jobs, Steve Wozniak, Steven Pinker, Walter Mischel, Watson beat the top human players on Jeopardy!, Y Combinator, young professional

And as those hardworking and talented scholarship recipients blossomed into young professionals, they tended to realize that they had a lot of career options outside the military. Eventually, they decided to go try something else. In other words, they learned things about themselves in their twenties and responded by making match quality decisions. The academy’s leaky officer pipeline began springing holes en masse in the 1980s, during the national transition to a knowledge economy. By the millennium, the leaks formed a torrent. The Army began offering retention bonuses—just cash payments to junior officers if they agreed to serve a few more years. It cost taxpayers $500 million, and was a massive waste. Officers who had planned to stay anyway took it, and those who already planned to leave did not. The Army learned a hard lesson: the problem was not a financial one; it was a matching one.

Both the culture of the time—pensions were pervasive and job switching might be viewed as disloyal—and specialization were barriers to worker mobility outside of the company. Plus, there was little incentive for companies to recruit from outside when employees regularly faced kind learning environments, the type where repetitive experience alone leads to improvement. By the 1980s, corporate culture was changing. The knowledge economy created “overwhelming demand for . . . employees with talents for conceptualization and knowledge creation.” Broad conceptual skills now helped in an array of jobs, and suddenly control over career trajectory shifted from the employer, who looked inward at a ladder of opportunity, to the employee, who peered out at a vast web of possibility. In the private sector, an efficient talent market rapidly emerged as workers shuffled around in pursuit of match quality.

No one in their right mind would argue that passion and perseverance are unimportant, or that a bad day is a cue to quit. But the idea that a change of interest, or a recalibration of focus, is an imperfection and competitive disadvantage leads to a simple, one-size-fits-all Tiger story: pick and stick, as soon as possible. Responding to lived experience with a change of direction, like Van Gogh did habitually, like West Point graduates have been doing since the dawn of the knowledge economy, is less tidy but no less important. It involves a particular behavior that improves your chances of finding the best match, but that at first blush sounds like a terrible life strategy: short-term planning. CHAPTER 7 Flirting with Your Possible Selves FRANCES HESSELBEIN GREW UP in the mountains of western Pennsylvania, among families drawn by steel mills and coal mines. “In Johnstown, 5:30 means 5:30,” she often says.


pages: 537 words: 158,544

Second World: Empires and Influence in the New Global Order by Parag Khanna

"Robert Solow", Admiral Zheng, affirmative action, anti-communist, Asian financial crisis, Bartolomé de las Casas, Branko Milanovic, British Empire, call centre, capital controls, central bank independence, cognitive dissonance, colonial rule, complexity theory, continuation of politics by other means, crony capitalism, Deng Xiaoping, different worldview, Dissolution of the Soviet Union, Donald Trump, Edward Glaeser, energy security, European colonialism, facts on the ground, failed state, flex fuel, Francis Fukuyama: the end of history, friendly fire, Gini coefficient, global reserve currency, global supply chain, haute couture, Hernando de Soto, illegal immigration, income inequality, informal economy, invisible hand, Islamic Golden Age, Khyber Pass, Kickstarter, knowledge economy, land reform, low cost airline, low skilled workers, mass immigration, means of production, megacity, Monroe Doctrine, Nelson Mandela, oil shale / tar sands, oil shock, open borders, open economy, Parag Khanna, Pax Mongolica, Pearl River Delta, pirate software, Plutonomy: Buying Luxury, Explaining Global Imbalances, Potemkin village, price stability, race to the bottom, RAND corporation, reserve currency, rising living standards, Ronald Reagan, Silicon Valley, Skype, South China Sea, special economic zone, stem cell, Stephen Hawking, Thomas L Friedman, trade route, trickle-down economics, uranium enrichment, urban renewal, Washington Consensus, women in the workforce

The base of the Burj Dubai tower was designed by American architects to resemble an Arabian desert flower, and the Al-Qasr bungalows blend modern design with Bedouin ventilation shafts that channel breezes downward into spacious chambers. Dubai can even buy brains: Its Knowledge Village features micro-campuses of the world’s top universities, and the current ruler, the benevolent Sheikh Mohammed, has pledged $10 billion to an education fund that promotes the region’s knowledge economy.*44 The hip Gulf male today sports his spotless white dishdasha, wears an American baseball cap, drives a Porsche or a Range Rover, and eats sushi in fine Asian fusion restaurants. But even with all the money in the world, Arab states seem to consciously avoid investing in replicating the indigenous capacity that has fueled East Asia’s rise to the pinnacle of the global economy. Instead, they allow bad habits to thrive in the new limitless context of globalization.

By keeping up with technology and wisely managing its reserves, Malaysia remains the only oil exporter in all of East Asia. Even when projected oil reserves run dry over the next two decades, it will still have massive deposits of natural gas. Urban-rural inequality and weak primary education have kept it from attaining the level of South Korea, but the highest share of its massive long-term budget is devoted to education, pushing the country to compete more actively in both the manufacturing and knowledge economies. The former spice route sultanate of Malacca now blends Portuguese colonial architecture with computer assembly plants, while Kuala Lumpur residents can purchase gourmet foods at Carrefour, the paragon brand of first-world grocery shopping. Leadership can make much of the difference anywhere in the world, and while Venezuelans are stuck with Hugo Chávez, Malaysians had Mahathir bin Mohamad.

Chinese enrollment in American universities has recently fallen because of opportunities in Europe and China itself. First-world countries slow to adjust to the pace of global redistribution of labor and investment are vulnerable to competition from—and potentially displacement by—members of the second world. A single world economy of competition across all sectors and regions has sparked a palpable global middling by which even more countries get pulled into the second world. The knowledge economy is no longer the special domain of the first world, meaning not only low-wage jobs but also such previously nontradable services as technology development, medical diagnostics, business consulting, and legal processing are off-shored to second-and third-world countries, where expanding incomes and consumption further strain the precious commons. But because no second-world state will voluntarily restrain its growth due to environmental concerns, rising commodity prices may harm growth for everyone.


pages: 527 words: 147,690

Terms of Service: Social Media and the Price of Constant Connection by Jacob Silverman

23andMe, 4chan, A Declaration of the Independence of Cyberspace, Airbnb, airport security, Amazon Mechanical Turk, augmented reality, basic income, Brian Krebs, California gold rush, call centre, cloud computing, cognitive dissonance, commoditize, correlation does not imply causation, Credit Default Swap, crowdsourcing, don't be evil, drone strike, Edward Snowden, feminist movement, Filter Bubble, Firefox, Flash crash, game design, global village, Google Chrome, Google Glasses, hive mind, income inequality, informal economy, information retrieval, Internet of things, Jaron Lanier, jimmy wales, Kevin Kelly, Kickstarter, knowledge economy, knowledge worker, late capitalism, license plate recognition, life extension, lifelogging, Lyft, Mark Zuckerberg, Mars Rover, Marshall McLuhan, mass incarceration, meta analysis, meta-analysis, Minecraft, move fast and break things, move fast and break things, national security letter, Network effects, new economy, Nicholas Carr, Occupy movement, optical character recognition, payday loans, Peter Thiel, postindustrial economy, prediction markets, pre–internet, price discrimination, price stability, profit motive, quantitative hedge fund, race to the bottom, Ray Kurzweil, recommendation engine, rent control, RFID, ride hailing / ride sharing, self-driving car, sentiment analysis, shareholder value, sharing economy, Silicon Valley, Silicon Valley ideology, Snapchat, social graph, social intelligence, social web, sorting algorithm, Steve Ballmer, Steve Jobs, Steven Levy, TaskRabbit, technoutopianism, telemarketer, transportation-network company, Travis Kalanick, Turing test, Uber and Lyft, Uber for X, uber lyft, universal basic income, unpaid internship, women in the workforce, Y Combinator, Zipcar

As the Danish academic Anders Colding-Jørgensen argues: “We should no longer see the Internet as a post office where information is sent back and forth, but rather as an open arena for our identity and self-promotion—an arena that is a legitimate part of reality, just like our homes, workplaces and other social arenas in our society.” We’ve moved, he explains, from an information economy to an identity economy. This is a bit self-serving—commentators have developed no shortage of dubious new types of “economy,” from the “attention economy” to the “knowledge economy”—but Colding-Jørgensen is onto something. Our consumption of information online has shifted from purely utilitarian to an expression of the self. This is the paradigm of “Pics or it didn’t happen,” where every incident is worthless without shareable documentation, because our experiences are made fuller by being shared. Even what we might think of as plainly utilitarian—a recipe, for instance—becomes an object for sharing and identity-crafting.

More and more of us are forced to be contingent laborers, freelancers, or “permalancers” always on the lookout for more work, always advertising ourselves through social-media and public networks, knowing—with a sense of generalized suspicion—that our public utterances on social media may influence our future job prospects. Risk assessment algorithms may already be parsing our social-media profiles, pooling information to be used in a future background check. Forced to work constantly to pay off household debt or school loans, we don’t have the time to learn the skills that would, we are told, allow us to succeed in the knowledge economy.* Large corporations start to realize that they can not only build on existing outsourcing—which has seen human resources, IT, customer service, and a range of other support staff shunted overseas—but also practice an ad hoc outsourcing at home, summoning pliable, cheap workers whenever they’re needed. Managers get plaudits for being technologically progressive and nimble, cutting budgets.

The lawsuit became a class-action case; 2,000 members of the program signed on. The case settled in 2009, years after the Community Leader Program was shut down, for a reported $15 million. A couple of years later, AOL bought the Huffington Post, another new-media company built partly on the backs of volunteers, none of whom saw any of the $315 million purchase price. As these examples illustrate, the knowledge economy relies on extracting maximum information and data from users at minimum cost. It is true, as Tiziana Terranova says, that “the Internet has been always and simultaneously a gift economy and an advanced capitalist economy.” Some things we’re comfortable giving away for free, others we’re not, and the decision on what is exploitative may differ between well-meaning individuals. But as Terranova goes on to explain, we shouldn’t “mistake this coexistence for a benign, unproblematic equivalence.”


pages: 287 words: 80,180

Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market Space and Make the Competition Irrelevant by W. Chan Kim, Renée A. Mauborgne

Asian financial crisis, borderless world, call centre, cloud computing, commoditize, creative destruction, disruptive innovation, endogenous growth, haute couture, index fund, information asymmetry, interchangeable parts, job satisfaction, Joseph Schumpeter, Kickstarter, knowledge economy, market fundamentalism, NetJets, Network effects, RAND corporation, Skype, telemarketer, The Wealth of Nations by Adam Smith, There's no reason for any individual to have a computer in his home - Ken Olsen, Thomas Kuhn: the structure of scientific revolutions, Vanguard fund, zero-sum game

. ———. 1997b. “Fair Process: Managing in the Knowledge Economy.” Harvard Business Review 75, July–August, 65–76. ———. 1997c. “On the Inside Track.” Financial Times, April 7. ———. 1997d. “When ‘Competitive Advantage’ Is Neither.” Wall Street Journal, April 21. ———. 1998a. “Procedural Justice, Strategic Decision Making, and the Knowledge Economy.” Strategic Management Journal, 323–338. ———. 1998b. “Building Trust.” Financial Times, January 9. ———. 1998c. “Value Knowledge or Pay the Price.” Wall Street Journal Europe, January 29. ———. 1998d. “A Corporate Future Built With New Blocks.” New York Times, March 29. ———. 1999a. “Creating New Market Space.” Harvard Business Review 77, January–February, 83–93. ———. 1999b. “Strategy, Value Innovation, and the Knowledge Economy.” MIT Sloan Management Review 40, no. 3, Spring. ———. 1999c.


pages: 482 words: 117,962

Exceptional People: How Migration Shaped Our World and Will Define Our Future by Ian Goldin, Geoffrey Cameron, Meera Balarajan

Admiral Zheng, agricultural Revolution, barriers to entry, Berlin Wall, Branko Milanovic, British Empire, conceptual framework, creative destruction, demographic transition, Deng Xiaoping, endogenous growth, failed state, Fall of the Berlin Wall, Gini coefficient, global pandemic, global supply chain, guest worker program, illegal immigration, income inequality, income per capita, Intergovernmental Panel on Climate Change (IPCC), job automation, Joseph Schumpeter, knowledge economy, labor-force participation, labour mobility, Lao Tzu, life extension, longitudinal study, low skilled workers, low-wage service sector, Malacca Straits, mass immigration, microcredit, Nelson Mandela, Network effects, new economy, New Urbanism, old age dependency ratio, open borders, out of africa, price mechanism, purchasing power parity, Richard Florida, selection bias, Silicon Valley, Silicon Valley startup, Skype, spice trade, trade route, transaction costs, transatlantic slave trade, women in the workforce, working-age population

While these temporary worker programs ended in the 1970s, economic migration channels are now established policy tools for receiving countries to promote “demand-led” migration.9 High-Skilled Migration Globalization has helped to shape a consensus among leading receiving countries about the desirability of highly skilled economic migration.10 In the early 1990s, traditional countries of immigration redoubled their efforts to attract high-skilled migrants to work and settle permanently.11 McLaughlan and Salt note, “the mainspring for policy has been the perceived benefit to national economic growth derived from the permanent acquisition of high-level human expertise.”12 Global economic competitiveness has driven a contest for skilled migrants to work in growing service sectors and the “knowledge economy.” European and certain Asian countries, however, have been slower to implement high-skilled migrant programs that lead to permanent settlement. The basic definition of a highly skilled migrant is one who has completed a formal two-year college education or more.13 Some authors also include members of the “creative class”: artists, athletes, performers, and entrepreneurs who may not meet the preceding formal definition, but make niche contributions to the economy and society.14 Highly skilled migrants, concludes the World Migration Report, “are mainly in high value-added and high productivity activities that are essential in the global knowledge society.”15 In skilled migration programs, admission is often linked to employment conditions.

While business interests have long been a constituency pushing for fewer restrictions on cross-border movement, their arguments have become increasingly influential. The result has been a progressive (and selective) dismantling of barriers to skilled migration, a trend that will continue in the coming decades. Leading corporations and businesses are increasingly competing for talent at a global level. They testify that it is more difficult to attract employees in a knowledge economy, especially when jobs involve working across borders and cultures. A report by KPMG, a management consulting group, notes: As corporations expand and join the globalized economy, the demand for talent has never been greater. This factor, combined with declining fertility rates and an increasing demand for talent within developing countries, has led to the so-called “labour crunch” where competition for skilled labour is intense.100 The “war for talent” means that businesses are often looking for people with cross-cultural skills and perspectives and the education to thrive in an information-driven environment.

“Immigrants in the United States 2007: A Profile of America's Foreign-Born Population,” Center for Immigration Studies Backgrounder, November 2007. 161. Camarota, 2007 162. Quoted in Castles and Miller, 2009: 235. 163. Castles and Miller, 2009: 237. 164. OECD, 2007: 76. 165. Ibid.: 76. 166. Jeffrey G. Reitz. 2005. “Tapping Immigrants' Skills: New Directions for Canadian Immigration Policy in the Knowledge Economy,” IRPP Choices 11(1): 3. 167. Reitz, 2005: 3. 168. Aaditya Mattoo, Ileana Cristina Neagu, and Çalar Özden. 2005. “Brain Waste? Educated Immigrants in the U.S. Labor Market,” World Bank Policy Research Working Paper 3581. 169. The Observer. 2010. “A Portrait of the New UK Migrant,” 17 January 2010, pp. 16–17. 170. Financial Times. 2009b. “Downturn Deals Blow to US Migrants,” 18 November 2009, p. 10. 171.


A United Ireland: Why Unification Is Inevitable and How It Will Come About by Kevin Meagher

Boris Johnson, British Empire, Celtic Tiger, cognitive dissonance, colonial rule, deindustrialization, knowledge economy, kremlinology, land reform, Nelson Mandela, period drama, Right to Buy, trade route, transaction costs

Historically, Ireland has sought to make its economy more competitive through keeping business taxes low, culminating in the 12.5 per cent rate, much to the chagrin of other EU member states, who have criticised its aggressive taxation regime, allowing it to cream off the spoils of international investment. But tiny Ireland, with its lack of connectivity to the Continent and dearth of mineral reserves, has simply made the most of what it has. In recent years it has conveniently skipped over the Industrial Revolution and headed straight for the intellectual, capitalintensive industries of the knowledge economy. A young, well-educated workforce (nearly half the Republic’s population – 49 per cent – is under thirty-five, whereas the EU average is just 40 per cent), a competitive tax regime, membership of the single market and a huge hinterland in the United States has provided a potent mix (especially as US companies account for two-thirds of foreign direct investment into Ireland). The Celtic Tiger years, from the mid-1990s until the crash of 2008, saw the Irish economy soar, with growth rates of 5–6 per cent a year.

The establishment of the Scottish Parliament did not end the demand for full-blown independence. It is clear now they actually provided a bridgehead for it, in a similar way, perhaps, that the Good Friday Agreement will subsequently do in Northern Ireland. Both are small, sophisticated countries with a hinterland in the English-speaking world; however, both are content to take their place in the European Union, with few of the hang-ups of the English. Both are knowledge economies with young, well-educated populations. Scottish Nationalists are showing that the oldest idea: national sovereignty and a people’s determination to secure it, endures as a rallying point. Like the Irish version, it challenges Unionists to come up with a better reason to cling to the status quo. The only response is to offer the Scots more local control, which, in turn, makes full independence more, not less, likely.


pages: 403 words: 87,035

The New Geography of Jobs by Enrico Moretti

assortative mating, Bill Gates: Altair 8800, business climate, call centre, cleantech, cloud computing, corporate raider, creative destruction, desegregation, Edward Glaeser, financial innovation, global village, hiring and firing, income inequality, industrial cluster, Jane Jacobs, Jeff Bezos, Joseph Schumpeter, knowledge economy, labor-force participation, low skilled workers, manufacturing employment, Mark Zuckerberg, mass immigration, medical residency, Menlo Park, new economy, peer-to-peer lending, Peter Thiel, Productivity paradox, Richard Florida, Sand Hill Road, Silicon Valley, Skype, special economic zone, Startup school, Steve Jobs, Steve Wozniak, thinkpad, Tyler Cowen: Great Stagnation, Wall-E, Y Combinator, zero-sum game

This results in high wages not just for skilled workers but for most workers. I consider the Great Divergence to be one of the most important developments in the United States over the past thirty years. As we will discover, the growing economic divide between American communities is not an accident but the inevitable result of deep-seated economic forces. More than traditional industries, the knowledge economy has an inherent tendency toward geographical agglomeration. In this context, initial advantages matter, and the future depends heavily on the past. The success of a city fosters more success, as communities that can attract skilled workers and good jobs tend to attract even more. Communities that fail to attract skilled workers lose further ground. The growing divergence of American communities is important not just in itself but because of what it means for American society.

The effect can be amazing: while individual companies in a cluster do not necessarily become more efficient as they grow in size, all companies taken together become more efficient as the cluster grows. A surprising implication is that as a country, the United States is more productive—and therefore richer—because its innovation sector is concentrated in a limited number of innovation hubs rather than spread out among all cities. This is one of the paradoxes of our knowledge economy. The forces of attraction and the agglomeration of economic activity create differences and inequality among communities. But at the same time, a significant part of America’s economic vitality and prosperity depends on them. The three forces of attraction are further magnified by the tendency of engineers, scientists, and innovators to leave established companies to open their own shops.

See Manufacturing Jobs, Steve, [>], [>], [>], [>], [>], [>]–[>] Johnson City–Kingsport–Bristol, Tennessee/Virginia, and cost of living, [>] Johnson & Johnson, [>]–[>] Johnstown, Pennsylvania, and cost of living, [>], [>] Joplin, Missouri, and cost of living, [>] Kahn, Jeff, [>] Kahn, Matthew, [>]–[>] Kain, John F., [>] Kansas City, [>], [>], [>] Katz, Lawrence F., [>]–[>], [>]–[>] Kauffman, Ewing Marion, [>]–[>] Kerr, William, [>] Kleiner Perkins Caufield & Byers, [>] Klepper, Steven, [>] Kline, Pat, [>], [>] Knowledge economy, [>], [>] and paradox of agglomeration, [>] See also at Innovation Knowledge spillovers, [>]–[>], [>], [>]–[>], [>]–[>] from academic researchers, [>] by immigrants, [>] and investment in innovation, [>]–[>] land-use policy harm to, [>] and local investment subsidies, [>] retaining U.S. leadership in, [>] social return on, [>] from university research, [>]–[>] See also Externalities Kodak, [>], [>], [>] Korea (South), [>], [>] Krugman, Paul, [>], [>] Kumar, Neil, [>] Labor markets (U.S.)


pages: 561 words: 87,892

Losing Control: The Emerging Threats to Western Prosperity by Stephen D. King

Admiral Zheng, asset-backed security, barriers to entry, Berlin Wall, Bernie Madoff, Bretton Woods, BRICs, British Empire, business cycle, capital controls, Celtic Tiger, central bank independence, collateralized debt obligation, corporate governance, credit crunch, crony capitalism, currency manipulation / currency intervention, currency peg, David Ricardo: comparative advantage, demographic dividend, demographic transition, Deng Xiaoping, Diane Coyle, Fall of the Berlin Wall, financial deregulation, financial innovation, fixed income, Francis Fukuyama: the end of history, full employment, G4S, George Akerlof, German hyperinflation, Gini coefficient, hiring and firing, income inequality, income per capita, inflation targeting, invisible hand, Isaac Newton, knowledge economy, labour market flexibility, labour mobility, liberal capitalism, low skilled workers, market clearing, Martin Wolf, mass immigration, Mexican peso crisis / tequila crisis, Naomi Klein, new economy, old age dependency ratio, Paul Samuelson, Ponzi scheme, price mechanism, price stability, purchasing power parity, rent-seeking, reserve currency, rising living standards, Ronald Reagan, savings glut, Silicon Valley, Simon Kuznets, sovereign wealth fund, spice trade, statistical model, technology bubble, The Great Moderation, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, The Market for Lemons, The Wealth of Nations by Adam Smith, Thomas Malthus, trade route, transaction costs, Washington Consensus, women in the workforce, working-age population, Y2K, Yom Kippur War

And there are those who embrace the supposed benefits of the post-industrial ‘knowledge economy’. For example, in The Writing on the Wall Will Hutton says: Soft knowledge is becoming as crucial as hard knowledge in the chain of creating value. By hard knowledge I mean the specific scientific, technological and skill inputs into a particular good or service … soft knowledge refers to the bundle of less tangible production inputs involving leadership, communication, emotional intelligence, the disposition to innovate and the creation of social capital that harnesses hard knowledge and permits its effective embodiment in goods and services and – crucially – its customization. Their interaction and combination is the heart of the knowledge economy. There is something rather theological about this approach, in part because it is so intangible.

(i) healthcare (i), (ii), (iii), (iv), (v), (vi), (vii) hedge funds (i), (ii), (iii) Hertz, Noreena (i) Hitler, Adolf (i) Hobbes, Thomas (i) Home Office (i) Hong Kong (i) ‘hot money’ inflows (i) housing market anarchy in capital markets (i), (ii) capital controls (i) population ageing (i) price stability (i), (ii), (iii), (iv) savings (i) trade (i) human capital theory (i) human ingenuity argument (i), (ii) Hume, David (i), (ii) Hungary (i) hunt for yield (i), (ii), (iii), (iv), (v), (vi), (vii), (viii) Huntingdon, Samuel (i) Hutton, Will (i), (ii) hyperinflation (i), (ii) IFS see Institute for Fiscal Studies IMF see International Monetary Fund immigration economic integration, political proliferation (i) nationalism (i) number of migrants to US (i) political economy and inequalities (i), (ii), (iii) population demographics (i) Spain and silver (i) Immigration Act (i), (ii) Immigration and Naturalization Act (1965) (i), (ii), (iii), (iv) imperialism (i), (ii), (iii), (iv), (v) imports (i), (ii), (iii), (iv), (v), (vi) income inequality globalization (i), (ii) political economy and inequalities (i) education (i) the emerging gap (i) emerging nations and income inequality in the developed world (i) food shortages (i) globalization (i) living with inequality (i) new modes of redistribution (i) not getting just rewards (i) a three-country model (i) too much domesticity (i) United Kingdom (i) winners and losers (i) price stability and economic instability (i) resource scarcity (i) state capitalism (i), (ii) Western progress (i), (ii), (iii) the West’s diminished status (i) income per capita argument (i) incomes China (i), (ii), (iii), (iv) political economy and inequalities (i), (ii) price stability and economic instability (i), (ii), (iii), (iv), (v), (vi) rent-seeking behaviour (i) scarcity (i), (ii), (iii), (iv) trade (i), (ii), (iii), (iv) India anarchy in capital markets (i), (ii) Islam (i) political economy and inequalities (i), (ii), (iii), (iv), (v), (vi), (vii) population demographics (i), (ii), (iii) price stability and economic instability (i) rent-seeking behaviour (i) scarcity (i), (ii), (iii), (iv) state capitalism (i), (ii), (iii) trade (i), (ii), (iii), (iv), (v) the West’s diminished status (i), (ii), (iii), (iv), (v) Indonesia (i), (ii), (iii) Industrial and Commercial Bank of China Ltd (ICBC) (i) Industrial Revolution (i), (ii), (iii), (iv), (v), (vi) infant mortality rate (i), (ii), (iii) inflation anarchy in capital markets (i) economic integration, political proliferation (i) indulging the US no more (i), (ii) political economy and inequalities (i), (ii) population demographics (i), (ii), (iii) price stability and economic instability (i) back to the 1970s (i) defining and controlling inflation (i) emerging economies (i), (ii) inflation as an instrument of income and wealth distribution (i) inflation as a result of currency linkages (i) overview (i), (ii), (iii) from stability to instability (i) we are not alone (i) resource scarcity (i) state capitalism (i), (ii) trade (i), (ii) the West’s diminished status (i), (ii), (iii) information technology (i), (ii) Institute for Fiscal Studies (IFS) (i), (ii) interest rates anarchy in capital markets (i), (ii), (iii), (iv), (v), (vi) globalization (i) indulging the US no more (i), (ii) price stability and economic instability (i), (ii), (iii), (iv), (v), (vi), (vii) savings (i) state capitalism (i), (ii), (iii) trade (i) the West’s diminished status (i), (ii) International Monetary Fund (IMF) (i), (ii), (iii), (iv), (v), (vi) International Olympic Committee (i), (ii) Internet (i) investment anarchy in capital markets (i), (ii), (iii), (iv), (v), (vi) capital flows and nation states (i), (ii) economic integration, political proliferation (i) nineteenth century (i) political economy and inequalities (i) population demographics (i), (ii), (iii) price stability and economic instability (i) protectionism (i) resource scarcity (i) state capitalism (i) trade (i), (ii), (iii) investment banks (i), (ii) ‘invisible hand’ (i), (ii), (iii), (iv), (v), (vi) Iran (i), (ii), (iii), (iv), (v) Iraq (i), (ii), (iii) Ireland (i), (ii) Islam (i), (ii), (iii) Isutani, Minoru (i) Italy (i), (ii), (iii), (iv), (v), (vi), (vii), (viii) Izvolsky, Count Alexander (i) Japan anarchy in capital markets (i), (ii), (iii), (iv) political economy and inequalities (i), (ii), (iii), (iv), (v) population demographics (i), (ii), (iii), (iv), (v), (vi), (vii) price stability and economic instability (i), (ii) scarcity (i), (ii) secrets of Western success (i), (ii) state capitalism (i), (ii), (iii), (iv) trade (i), (ii), (iii) US trade deficit (i) the West’s diminished status (i), (ii), (iii), (iv), (v) Jay, Peter (i) Jefferson, Thomas (i) jet airline industry (i) Jewish populations (i), (ii), (iii) Jin Mao Tower (i) Jones, Francis (i) Judt, Tony (i) junk bonds (i), (ii) juntas (i) Kamin, Steven B. (i) Kaplan, Stephen N. (i) keiretsu firms (i), (ii) Kennedy, John F. (i), (ii) Kennedy, Paul (i) Keynesianism (i), (ii) Keynes, John Maynard (i), (ii), (iii), (iv), (v), (vi) KGB (i) Khan, Genghis (i) Khan, Kublai (i) Kirchgaessner, Stephanie (i) Klein, Naomi (i) knowledge economy (i), (ii) Komatsu (i) Korea (i), (ii), (iii), (iv) Korean War (i) kudoka (‘hollowing out’) in Japan (i) Kuwait (i) Kuznets, Simon (i), (ii) labour capital markets (i) empires (i), (ii) political economy and inequalities (i), (ii), (iii), (iv) price stability and economic instability (i), (ii) rent-seeking behaviour (i) running out of workers (i) command over limited resources (i) demographic dividends and deficits (i) demographic dynamics (i) infant mortality (i) Japan: an early lesson in ageing (i) not the time to close the borders (i) pensions and healthcare (i) a renewed look at migration (i) scarcity (i) state capitalism (i) trade (i), (ii), (iii), (iv) the West’s diminished status (i), (ii) labour mobility (i), (ii), (iii), (iv), (v), (vi) Labour Party (i), (ii) land (i), (ii), (iii), (iv), (v), (vi) Latin America (i), (ii), (iii), (iv), (v), (vi), (vii) law (i), (ii) League of Nations (i) Leicester, Andrew (i) Lenglen, Suzanne (i) Lenin, Vladimir (i), (ii), (iii) Lennon, Emily (i) Leviathan (Hobbes) (i) Levi Strauss company (i) Levy, Frank (i), (ii), (iii) Lewis, Bernard (i) LG (i) liberal democracy (i), (ii), (iii), (iv), (v) life expectancy (i), (ii), (iii), (iv), (v) Lincoln, Abraham (i) liquidity (i), (ii), (iii) Liverpool FC (i) living standards anarchy in capital markets (i), (ii), (iii) capital controls (i) demographic dividends and deficits (i) political economy and inequalities (i), (ii) price stability and economic instability (i), (ii) scarcity (i), (ii), (iii), (iv), (v), (vi), (vii) trade (i) London (i), (ii), (iii) London Electricity plc (i) L’Oréal (i) Louisiana Purchase (i), (ii) Louis XVIII (i) Louvre accord (i) Lucas, Edward (i) Luther, Martin (i) Macmillan, Harold (i) macroeconomic policy (i), (ii), (iii) Maddison, Angus (i), (ii), (iii) Magna Carta (i) malaria (i) Malaysia (i) Malta (i) Malthusian constraint political economy and inequalities (i), (ii), (iii), (iv) population demographics (i) price stability and economic instability (i) rent-seeking behaviour (i), (ii) scarcity (i) state capitalism (i) Malthus, Thomas (i), (ii), (iii) Manchester City FC (i), (ii) Manchester United FC (i) manufacturing (i), (ii), (iii) Mao Zedong (i), (ii), (iii), (iv) market forces political economy and inequalities (i), (ii) scarcity (i), (ii) secrets of Western success (i), (ii), (iii) state capitalism (i), (ii) Western progress (i), (ii) the West’s diminished status (i), (ii) Marks, Catherine (i) Marxism (i) Marx, Karl (i), (ii), (iii) McDonalds (i) meat-based diets (i) Medicare (i) Medvedev, Dimitry (i), (ii) metals (i), (ii), (iii), (iv), (v) Mexico anarchy in capital markets (i), (ii) migration (i) monetary union (i) Spain and silver (i) trade (i), (ii), (iii), (iv) Meyer, Sir Christopher (i) Microsoft (i) Middle East (i), (ii), (iii), (iv), (v), (vi) migration globalization (i), (ii), (iii) political economy and inequalities (i), (ii), (iii) population demographics (i), (ii) scarcity (i) Spain and silver (i) military action (i), (ii), (iii), (iv), (v) Mill, John Stuart (i) Minder, Raphael (i) Ming Dynasty (i), (ii) minimum wage (i) Mitsubishi Estate Company (i), (ii) mobile phones (i) monetarism (i), (ii) monetary policy (i), (ii), (iii), (iv), (v), (vi) Monetary Policy Committee (i) money supply (i), (ii), (iii) Mongols (i), (ii) monopolies (i), (ii) Morgan, Darren (i) mortgages (i), (ii), (iii) multinationals (i), (ii), (iii), (iv), (v), (vi), (vii) Muslims (i), (ii) Nabucco (i) Napoleon Bonaparte (i) Napoleonic Wars (i) nationalism globalization (i), (ii), (iii) political economy and inequalities (i), (ii) state capitalism (i) the West’s diminished status (i), (ii), (iii) xenophobia (i) nation states (i), (ii), (iii), (iv), (v), (vi), (vii) NATO (North Atlantic Treaty Organization) (i), (ii), (iii), (iv) natural gas (i), (ii), (iii), (iv) The Netherlands (i), (ii) ‘new economy’ (i) New Orleans (i) Newton, Sir Isaac (i) New York (i) New York Times (i) New Zealand dollar (i) Nicolson, Sir Arthur (i) Nigeria (i) Nixon, Richard (i), (ii) Nord Stream (i), (ii), (iii) North American Free Trade Association (i), (ii), (iii) North Atlantic Treaty Organization see NATO Norway (i), (ii) Nozick, Robert (i) nuclear technology (i), (ii), (iii), (iv) nutrition see diet; food Obama, Barack (i), (ii) Obama, Michelle (i) Obstfeld, Maurice (i) O’Dea, Cormac (i) OECD see Organization for Economic Co-operation and Development Office for National Statistics (i), (ii), (iii) off-shoring (i), (ii), (iii), (iv), (v), (vi), (vii), (viii) oil indulging the US no more (i), (ii) political economy and inequalities (i), (ii), (iii) price stability (i), (ii), (iii), (iv) scarcity (i) state capitalism (i), (ii) Oldfield, Zoë (i) Olympic Games (i), (ii), (iii) one-child policy (i), (ii) On the Principles of Political Economy and Taxation (Ricardo) (i), (ii) OPEC (Organization of the Petroleum Exporting Countries) (i) Opium Wars (i), (ii) opportunity cost (i), (ii), (iii) Oregon (i) Organization for Economic Co-operation and Development (OECD) (i), (ii), (iii) Organization of the Petroleum Exporting Countries (OPEC) (i) Ottoman Empire (i), (ii), (iii), (iv) outsourcing (i), (ii), (iii), (iv), (v), (vi), (vii) Owens, Jesse (i), (ii) ownership (i), (ii) Oxford University (i) P&O (i) Pakistan (i) Panama (i) Pearl Harbor (i) Pebble Beach, California (i) Pennine Natural Gas (i) pensions anarchy in capital markets (i), (ii), (iii) population demographics (i), (ii), (iii), (iv), (v), (vi), (vii) price stability and economic instability (i) scarcity (i) the West’s diminished status (i), (ii), (iii) People’s Bank of China (i) Perloff, Jeffrey M.


pages: 578 words: 131,346

Humankind: A Hopeful History by Rutger Bregman

Airbnb, Anton Chekhov, basic income, Berlin Wall, bitcoin, Broken windows theory, call centre, David Graeber, Donald Trump, experimental subject, Fall of the Berlin Wall, Frederick Winslow Taylor, Hans Rosling, invention of writing, invisible hand, knowledge economy, late fees, Mahatma Gandhi, mass incarceration, meta analysis, meta-analysis, Milgram experiment, Nelson Mandela, New Journalism, placebo effect, sharing economy, Shoshana Zuboff, Silicon Valley, social intelligence, Stanford prison experiment, Stephen Hawking, Steve Jobs, Steven Pinker, The Spirit Level, The Wealth of Nations by Adam Smith, transatlantic slave trade, tulip mania, universal basic income, World Values Survey

You might say his organisation combines the best of left and right, spending taxpayer money on the delivery of small-scale care by independent practitioners. De Blok sums up his philosophy like this: ‘It’s easy to make things hard, but hard to make them easy.’ The record clearly shows that managers prefer the complicated. ‘Because that makes your job more interesting,’ de Blok explains. ‘That lets you say: See, you need me to master that complexity.’ Could it be that’s also driving a big part of our so-called ‘knowledge economy’? That pedigree managers and consultants make simple things as complicated as possible so we will need them to steer us through all the complexity? Sometimes I secretly think this is the revenue model of not only Wall Street bankers but also postmodern philosophers peddling incomprehensible jargon. Both make simple things impossibly complex. Jos de Blok does the opposite: he opts for simplicity.

This is the only disorder, I once heard a psychiatrist remark, that’s seasonal: what seems insignificant over summer vacation requires more than a few kids to be dosed on Ritalin when schools start again.22 Granted, we’re a lot less strict with kids today than we were a hundred years ago, and schools are no longer the prisons they resembled in the nineteenth century. Kids who behave badly don’t get a slap, but a pill. Schools no longer indoctrinate, but teach a more diverse curriculum than ever, transferring as much knowledge to students as possible so they’ll find well-paying jobs in the ‘knowledge economy’. Education has become something to be endured. A new generation is coming up that’s internalising the rules of our achievement-based society. It’s a generation that’s learning to run a rat race where the main metrics of success are your résumé and your pay cheque. A generation less inclined to colour outside the lines, less inclined to dream or to dare, to fantasise or explore. A generation, in short, that’s forgetting how to play. 3 Is there another way?

In 2018 two Dutch economists analysed a poll of twenty-seven thousand workers in thirty-seven countries. They found that fully a quarter of respondents doubt the importance of their own work.37 Who are these people? Well, they’re certainly not cleaners, nurses, or police officers. The data show that most ‘meaningless jobs’ are concentrated in the private sector – in places like banks, law firms and ad agencies. Judged by the criteria of our ‘knowledge economy’, the people holding these jobs are the definition of success. They earned straight As, have sharp LinkedIn profiles and take home fat pay cheques. And yet the work they do is, by their own estimation, useless to society. Has the world gone nuts? We spend billions helping our biggest talents scale the career ladder, but once at the top they ask themselves what it’s all for. Meanwhile, politicians preach the need to secure a higher spot in international country rankings, telling us we need to be more educated, earn more money and bring the economy more ‘growth’.38 But what do all those degrees really represent?


pages: 353 words: 91,520

Most Likely to Succeed: Preparing Our Kids for the Innovation Era by Tony Wagner, Ted Dintersmith

affirmative action, Airbnb, Albert Einstein, Bernie Sanders, Clayton Christensen, creative destruction, David Brooks, en.wikipedia.org, Frederick Winslow Taylor, future of work, immigration reform, income inequality, index card, Jeff Bezos, jimmy wales, Joi Ito, Khan Academy, Kickstarter, knowledge economy, knowledge worker, low skilled workers, Lyft, Mark Zuckerberg, means of production, new economy, pattern recognition, Paul Graham, Peter Thiel, Ponzi scheme, pre–internet, school choice, Silicon Valley, Skype, Steven Pinker, TaskRabbit, the scientific method, uber lyft, unpaid internship, Y Combinator

Over the course of the twentieth century, that goal has been somewhat modified with the expectation that public schools, and not just private schools, should prepare more students for white-collar professions and for the “knowledge economy.” A college education was assumed to be required for both. But, as we will see, the nature of the education that students receive in many colleges today does nothing whatsoever to prepare them for the innovation economy that has emerged in the last two decades. Today’s world is different. Routine tasks are being automated. Content is ubiquitous. Even many of the tasks required in a knowledge economy—collection, transmission, and processing of information—are increasingly handled by computers. White-collar professions are being profoundly disrupted. Take law, for example. It used to be one of those professions that many parents wished for their children, white collar—a safe bet.

See purpose of education riding a bicycle example and, 31 test prep as focus and problem in, 85–86 variations and similarities in, 84 Karabel, Jerome, 173 Kay, Ken, 249, 260 Kearns, David, 224, 225 Keeling, Richard, 149 Kennedy, Ted, 26 Khan, Sal, 193–94, 199 Khan Academy, 98, 193, 194 kindergarten conflicting goals in, 37–39 See also K-12 education King, Martin Luther, 121 KIPP network of charter schools, 57, 122, 249, 252 Klein, Joel, 227 knowledge economy (knowledge workers) educational methods for, 25–26, 27 purpose of education and, 43 Koru, 237–38 Krueger, Alan, 176 Labaree, David, 161–62 laboratory schools, 233 LaMontagne, Juliette, 239 language arts courses. See English language courses Latin grammar school model, 24 Lawrenceville School, Lawrenceville, New Jersey, 41, 199 Leader’s Guide to 21st Century Education, The (Kay and Greenhill), 260 learning apprenticeship model of, 21, 22–24 college education and, 154–58 hands-on, learning-by-doing approach in, 32, 33, 34 riding a bicycle example in, 28–32 standardized assessment of, 32 See also educational methods learning-by-doing, hands-on approach, 21, 22–24, 33, 34, 244–45 lecture model, 191, 193–94, 195 “Letter from Birmingham Jail” (King), 121 Levin, Dave, 252–53 Levine, Arthur, 174 LinkedIn, 14, 237 Littky, Dennis, 247 Lockhart, Paul, 101–02 Losing Ourselves (documentary film), 47 Lumina Foundation, 164, 165 Maggiano, Ron, 218 MakerLab, 246 Malcolm X Shabazz High School, Newark, New Jersey, 49, 249–51 Mann, Horace, 24–25, 170 Massachusetts, early public education in, 24 Massachusetts Institute of Technology (MIT), 161, 167, 192, 193, 195, 196, 236, 238–39, 246, 254, 255, 256 math courses, 88–102, 145 adult use of skills learned in, 93 areas taught in, 88–89 college admissions and, 96–98 college teaching of, 93 computer applications for, 93–94 creative problem-solving in, 94 financial literacy and, 71–72, 88 fun of math, 102–03 importance of, 87 NBA Math Hoops game for developing, 45 proposed reimagining of curriculum in, 98–100 skills taught in, 90–91 slide-rule use in, 90–92 standardized tests on, 92–93, 94–95 20th-century model of, 89–90 21st-century model of, 101 Mathematician’s Lament, A (Lockhart), 101–02 Mattingly, Kevin, 199 Mazur, Eric, 129–31, 132, 194–95, 199, 200–02, 203, 216–17 McDaniel, Mark, 198 McKinsey, 189 Media Lab, MIT, 192, 193, 238–39, 254 Meier, Deborah, 73, 139, 247 memorization approach.


pages: 344 words: 93,858

The Post-American World: Release 2.0 by Fareed Zakaria

affirmative action, agricultural Revolution, airport security, anti-communist, Asian financial crisis, battle of ideas, Berlin Wall, Bretton Woods, BRICs, British Empire, call centre, capital controls, central bank independence, centre right, collapse of Lehman Brothers, conceptual framework, Credit Default Swap, currency manipulation / currency intervention, delayed gratification, Deng Xiaoping, double entry bookkeeping, failed state, Fall of the Berlin Wall, financial innovation, global reserve currency, global supply chain, illegal immigration, interest rate derivative, Intergovernmental Panel on Climate Change (IPCC), knowledge economy, Mahatma Gandhi, Martin Wolf, mutually assured destruction, new economy, oil shock, open economy, out of africa, Parag Khanna, postindustrial economy, purchasing power parity, race to the bottom, reserve currency, Ronald Reagan, Silicon Valley, Silicon Valley startup, South China Sea, Steven Pinker, The Great Moderation, Thomas L Friedman, Thomas Malthus, trade route, Washington Consensus, working-age population, young professional, zero-sum game

The difference between average science scores in poor and wealthy school districts within the United States, for instance, is four to five times greater than the difference between the U.S. and Singaporean national averages. In other words, America is a large and diverse country with a real inequality problem. This will, over time, translate into a competitiveness problem, because if we cannot educate and train a third of the working population to compete in a knowledge economy, it will drag down the country. But we do know what works. The large cohort of students in the top fifth of American schools rank along with the world’s best. They work hard and have a highly scheduled academic and extracurricular life, as anyone who has recently been to an Ivy League campus can attest. I went to elementary, middle, and high school in Mumbai, at an excellent institution, the Cathedral and John Connon School.

Whatever the savings rate, it has fallen fast over the past two decades, though a new recession-driven thriftiness has raised it to about 5 percent in the last two years. By all calculations, Medicare threatens to blow up the federal budget. The swing from the surpluses of 2000 to the deficits of today has serious implications. For most families, moreover, incomes are flat or rising very slowly. Growing inequality is the signature feature of the new era fueled by a triple force—the knowledge economy, information technology, and globalization. Perhaps most worryingly, Americans are borrowing 80 percent of the world’s surplus savings and using it for consumption. In other words, we are selling off our assets to foreigners to buy a couple more lattes a day. These problems have accumulated at a bad time because, for all its strengths, the American economy now faces some of its strongest challenges in history.

., 53, 87 Hussein, Saddam, 189, 248n, 274 Hwa Chong Institution, 211 hyperinflation, 25 “hyperpower,” 246 IBM, 104 Ignatius, David, 270 Ikenberry, John, 256 Immelt, Jeffrey, 204, 258 immigration, 16, 61, 87, 167, 213–16, 224, 233, 272, 276, 278, 283 Imperial China, 62–74, 76, 77, 84, 86, 122–25 Imperial Germany, 186n, 192, 195, 257, 261, 266–67 imperialism, 42, 258–59, 261–63 Imperial Japan, 36–37, 38, 84, 134–35, 196 income levels, 23, 67, 113–14, 148, 206, 207, 212, 216, 217–18, 219, 282 independent regulatory agencies, 90 India, 31, 145–83, 281 agriculture in, 151, 160 ancient civilization of, 64, 65, 67, 70, 77, 82–83 as Asian country, 151–52, 173, 181 author as native of, 205, 210, 271, 283, 284–85 automobiles in, 110, 111, 149, 229–30 banking industry of, 153, 157 billionaires in, 149, 155 British rule of, 36, 37, 60, 81, 84, 89, 94, 97–98, 151, 154, 156, 158–59, 161, 162–63, 164, 170, 173, 179 capitalism in, 74, 113–15, 152–53, 157, 167 caste system of, 74, 180–81 China compared with, 64, 108–9, 110–11, 113, 146, 147–51, 152, 157, 159, 167, 169, 175–78, 181–82, 257 Chinese relations with, 133, 143, 165, 166, 169, 173, 257 coal power in, 34 Communist Party of, 158 Constituent Assembly of, 154 Constitution of, 150 consumerism in, 151–52 corruption in, 156–57 credit in, 152–53 culture of, 64, 67, 70, 77, 82–83, 88, 93, 94, 95, 99, 169–74 as democracy, 40, 108, 109, 113, 117, 145, 150, 152, 154, 156–62, 167, 169, 172, 173, 176, 178–83 demographics of, 148 as developing country, 151–53, 157–62, 169, 175, 177, 181 diversity of, 178–83 domestic market of, 48 economic reform in, 108, 159–62, 169, 178 economy of, xii, 2–3, 23, 40–41, 48, 55, 65, 74, 86, 108, 113–15, 117, 145–62, 166–67, 169, 175, 178, 181, 200, 226–27, 249 education in, 82–83, 109, 155, 157–58, 160, 161, 204–8, 210 Election Commission of, 157 as emerging market, 39, 53, 258 emigration from, 167 energy needs of, 30, 34, 176 engineers trained in, 204–8 female literacy in, 157 film industry of, 90, 94, 147, 153–55 foreign investment in, 153 foreign policy of, 162–78 free markets in, 23 global influence of, 53, 146–48, 164–78, 181, 256–57, 269 government of, 145, 150, 156–67, 177–83 gross domestic product (GDP) of, 49, 66, 145, 148, 151, 152, 157, 249 growth rate for, 2, 145–56, 158, 159–62, 166, 169, 178, 182, 249 health care in, 155, 157–58, 160, 161 Hinduism in, 74, 75, 97–98, 146, 169–74, 180 HIV rate in, 149, 161 human rights in, 88–89, 97, 157–58, 173 income levels of, 148, 207 independence of, 154, 159, 162 industrialization of, 151 inflation in, 145 infrastructure of, 149–53, 159 languages of, 93, 151, 168, 179, 180 legal system of, 150, 157 literacy rate in, 157–58 living standards in, 66–67 manufacturing sector of, 22, 148–49, 151, 153 mass media in, 154–55, 173 middle class of, 160 military forces of, 164, 167, 174–78, 249, 260 modernization of, 74, 145–49, 151 multinational corporations in, 60 Muslim minority in, 12, 158–59, 172, 180–81 nationalism in, 41, 145, 158–59, 180–83 nonalignment policy of, 163–66, 177 nuclear weapons of, 54, 167, 174–78, 249, 260 oil needs of, 30 Pakistan’s relations with, 145, 165, 172, 176 political parties in, 154, 156–62, 178, 179–80 population of, 23, 31, 66, 145, 147–48, 178–83 poverty in, 3, 146, 149, 150, 155–58, 169, 177 private sector of, 148–53, 160–61 regional governments in, 145, 161–62, 178–83 service sector of, 43, 148, 151, 229 socialism in, 157, 161, 173, 178 taxation in, 236 technology sector of, 28, 50, 148–49, 161, 204–8 as UN member, 165n urbanization of, 150, 153–55, 160, 166 U.S. compared with, 155–56, 200, 226–27 U.S. relations with, 54–55, 144, 160, 166–68, 173, 174–78, 182, 249–50, 263, 264, 266, 269, 271, 274, 283 wage levels in, 207 Western influence in, 88–91, 94, 99 women in, 88, 157, 160–61 Indian Institutes of Technology, 145, 161, 205–6 Indonesia, xii, 4, 11, 13, 14, 17, 23, 86, 99, 110, 132, 171, 278 industrialization, 2, 3, 20, 65, 66, 87, 104, 106–7, 110, 151, 191, 192–93, 200, 204, 217, 218, 262 industrial revolution, 104, 262 inflation, 25–26, 28, 43, 145, 217 information technology, 9, 215, 219 Infosys Technologies, 50, 148, 153, 155 infrastructure, 149–53 initial public offerings (IPOs), 202, 220–22 intellectual property, 125–26 interest rates, 21, 43, 75, 139, 222 Intergovernmental Panel on Climate Change, 33 intermediate business expenses, 218 International Atomic Energy Agency (IAEA), 54, 175, 176 International Herald Tribune, 96 International Monetary Fund (IMF), 24, 41, 48–49, 55, 241 Internet, 27, 93, 96, 112–13, 135, 142, 225 investment funds, 3, 32, 201 iPhone, 203 iPod, 147 Iran, 6, 8, 9, 16, 18, 31, 54–55, 96, 125, 141, 167, 190, 235–36, 259, 260, 273, 277, 284 Iranian hostage crisis, 284 Iran-Iraq War, 9 Iraq, xi, 6, 8, 9, 11–12, 13, 15, 52, 141, 162, 185, 189–90, 199, 244, 246, 247–48, 250 Iraq War, xi, 6, 8, 52, 141, 185, 189–90, 199, 247–48, 250, 251, 252, 260, 269, 273, 274 Ireland, 46–47, 48 iron, 131, 191 Islam, 10–17, 75, 89, 122, 125, 158–59, 172, 180–81, 213, 241, 263, 272, 276, 278 Islamic fundamentalism, 10–17, 75, 89, 172, 241, 263, 271, 272, 278 Israel, 6, 96, 168, 246, 260, 269, 274, 284 Italy, 24, 97, 148, 182, 195 It’s a Wonderful Life, 85 “Ivory Tower” nations, 201 Jakarta, 17 James, Lawrence, 189 Japan, 26, 282 Buddhism in, 171 China compared with, 104–5 Chinese relations of, 101, 120, 134–35, 143 culture of, 87, 89, 91–92, 98, 99, 122, 212 democracy in, 114, 116 economy of, 20, 22, 23, 28, 36–37, 38, 40, 86, 104–5, 118, 120, 233, 245 education in, 207–8, 209, 210, 211–12 family values in, 92, 93 fertility rate of, 214 Japan (continued) foreign aid by, 135 foreign trade of, 77, 81–82 global influence of, 22, 35, 37, 38, 40, 53, 118, 120, 121, 176, 233, 256 gross domestic product (GDP) of, 207–8 Imperial, 36–37, 38, 84, 134–35, 196 manufacturing sector of, 28 Meiji Reformation in, 84 military forces of, 134 population of, 51, 214 savings rate of, 104 technology sector of, 87, 201, 207–8, 233 trade balance of, 104 U.S. relations with, 245, 266 Western influence in, 81–82, 84, 98, 99 Jemaah Islamiah, 11 Jiang Zemin, 134 jihad, 10–17 Muslim views on, 14–15 Joffe, Josef, 53, 251, 266 Jones, Benjamin, 214–15 Jordan, 8, 14 Judaism, 11, 122, 172 Kagan, Robert, 253 Kant, Immanuel, 123 Karnataka, 180 Kennedy, Paul, 74, 193 Kent, Muhtar, 58, 236–37 Kenya, 4, 41 Keynes, John Maynard, 196–97 kimonos, 88 Kissinger, Henry, 245, 265 Kitchener, H. H., 189 knowledge economy, 219 Kohl, Helmut, 245 Korean War, 20 Kosovo, 35, 245, 272 Kotak, Uday, 153 Kreuz-Zeitung, 188 Krishnadevaraya, 67 Kursk, Battle of, 37 Kyoto accords (1997), 34, 40 Kyrgyz Republic, 54 labor market, 27–28, 69, 151, 202, 206, 225–26, 228–29 labor-saving devices, 71–72 labor unions, 158, 212 Landes, David, 73 Las Vegas, 3 Latin America, 6, 19, 31, 40, 90, 95, 245 Latin language, 92 law: common, 81 contract, 125–26, 150 divine, 123 Islamic, 16 natural, 123–24 rule of, 114, 125–26, 150, 157, 225 Laxman, R.


pages: 777 words: 186,993

Imagining India by Nandan Nilekani

addicted to oil, affirmative action, Airbus A320, BRICs, British Empire, business process, business process outsourcing, call centre, clean water, colonial rule, corporate governance, cuban missile crisis, deindustrialization, demographic dividend, demographic transition, Deng Xiaoping, digital map, distributed generation, farmers can use mobile phones to check market prices, full employment, ghettoisation, glass ceiling, global supply chain, Hernando de Soto, income inequality, informal economy, information asymmetry, Intergovernmental Panel on Climate Change (IPCC), joint-stock company, knowledge economy, land reform, light touch regulation, LNG terminal, load shedding, low cost airline, Mahatma Gandhi, market fragmentation, mass immigration, Mikhail Gorbachev, Network effects, new economy, New Urbanism, open economy, Parag Khanna, pension reform, Potemkin village, price mechanism, race to the bottom, rent control, rolodex, Ronald Reagan, school vouchers, Silicon Valley, smart grid, special economic zone, The Wealth of Nations by Adam Smith, Thomas L Friedman, Thomas Malthus, transaction costs, trickle-down economics, unemployed young men, upwardly mobile, urban planning, urban renewal, women in the workforce, working poor, working-age population

The impact of our changing demographics will be a cycle in either effectiveness or disaster—harnessing it for growth will minimize our divides and dampen the demand for community-based benefits. But if we fail, our demographic curve will become a line to a powder keg. “People, people, people”: Our changing impressions Looking back, the common man and woman have been bit players in our histories, their role determined by statistics and crowds. It is only recently, particularly since the 1970s, with the rise of labor productivity and the knowledge economy, that the political power of people has been accompanied with greater economic power. This shift in power has been especially significant in India. For a long time, governments regarded the country’s population as its great liability. Vastly poor and illiterate, India’s people were “the great unwashed,” a burden not just for the country but also a worry for the rest of the world. Today, however, India’s growth is credited to its strength in human capital, and the rise of IT in India, for instance, is seen in terms of “Indian talent,”30 as entrepreneurs and workers overcame the barriers that existed in the 1990s to drive growth.

“There is a lot of change,” he says, “but I wonder if there is enough of it. India has a lot of ground to cover on education, and very little time.” I am familiar with this tone of wary optimism—I have caught it often in the remarks of NGO workers and the bureaucrats working with India’s schools. Despite some signs of progress, our dilemmas in school education are very real; they are the small print that accompanies India’s rise as a knowledge economy. We have some pretty shocking statistics when it comes to education: India produces the second largest number of engineers in the world every year, as well as the largest number of school dropouts. Even as India is building a name for itself in intellectual capital, a third of its population remains illiterate. Across cities, some of the best-equipped schools—with swimming pools and air-conditioned tennis courts—and the worst, lacking even a blackboard, exist across the street from one another.

Politicians who oppose the unshackling of the labor market, and even favor new constraints, have often referred to India’s workers as the “toiling masses,” a homogeneous, beaten-down group who need the enveloping arms of the state. In this version of events, labor is a passive force that survives only thanks to the aggressive intervention of labor regulations. But this is no longer true. The idea of “mass,” easily replaceable labor has foundered on the rock of India’s rising knowledge economy. India’s growth has also given labor new power and employment opportunities. At Infosys, we have our share of employees who come from financially constrained backgrounds—Prasad, the son of a rickshaw puller, and Fatima Bibi Sheik, a young girl whose husband, a street pani puri vendor, supported her education and put her through college. In India’s present investment-friendly, high-growth market, such opportunities for financial mobility and an entry into the middle class have the potential to multiply and explode for our workers.


pages: 585 words: 151,239

Capitalism in America: A History by Adrian Wooldridge, Alan Greenspan

"Robert Solow", 2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, Affordable Care Act / Obamacare, agricultural Revolution, air freight, Airbnb, airline deregulation, American Society of Civil Engineers: Report Card, Asian financial crisis, bank run, barriers to entry, Berlin Wall, Bonfire of the Vanities, Bretton Woods, British Empire, business climate, business cycle, business process, California gold rush, Charles Lindbergh, cloud computing, collateralized debt obligation, collective bargaining, Corn Laws, corporate governance, corporate raider, creative destruction, credit crunch, debt deflation, Deng Xiaoping, disruptive innovation, Donald Trump, edge city, Elon Musk, equal pay for equal work, Everybody Ought to Be Rich, Fall of the Berlin Wall, fiat currency, financial deregulation, financial innovation, fixed income, full employment, George Gilder, germ theory of disease, global supply chain, hiring and firing, income per capita, indoor plumbing, informal economy, interchangeable parts, invention of the telegraph, invention of the telephone, Isaac Newton, Jeff Bezos, jimmy wales, John Maynard Keynes: technological unemployment, Joseph Schumpeter, Kenneth Rogoff, Kitchen Debate, knowledge economy, knowledge worker, labor-force participation, Louis Pasteur, low skilled workers, manufacturing employment, market bubble, Mason jar, mass immigration, means of production, Menlo Park, Mexican peso crisis / tequila crisis, minimum wage unemployment, mortgage debt, Myron Scholes, Network effects, new economy, New Urbanism, Northern Rock, oil rush, oil shale / tar sands, oil shock, Peter Thiel, plutocrats, Plutocrats, popular capitalism, post-industrial society, postindustrial economy, price stability, Productivity paradox, purchasing power parity, Ralph Nader, Ralph Waldo Emerson, RAND corporation, refrigerator car, reserve currency, rising living standards, road to serfdom, Robert Gordon, Ronald Reagan, Sand Hill Road, savings glut, secular stagnation, Silicon Valley, Silicon Valley startup, Simon Kuznets, Social Responsibility of Business Is to Increase Its Profits, South Sea Bubble, sovereign wealth fund, stem cell, Steve Jobs, Steve Wozniak, strikebreaker, supply-chain management, The Great Moderation, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, too big to fail, total factor productivity, trade route, transcontinental railway, tulip mania, Tyler Cowen: Great Stagnation, union organizing, Unsafe at Any Speed, Upton Sinclair, urban sprawl, Vannevar Bush, War on Poverty, washing machines reduced drudgery, Washington Consensus, white flight, wikimedia commons, William Shockley: the traitorous eight, women in the workforce, Works Progress Administration, Yom Kippur War, young professional

Americans began to regard their prowess in winning Nobel Prizes as a measure of the country’s economic virility—between 1943 and 1969, America won twenty-one Nobel Prizes in Physics, far more than any other country, though eleven of the winners were European refugees. Over the postwar period as a whole, it established a striking and sustained lead over every other country. Postwar America led the world in creating a knowledge economy. American higher education provided a unique mixture of access and quality. The proportion of eighteen- to twenty-four-year-olds enrolled in institutions of higher education increased from 9.1 percent in 1939 to 15.2 percent in 1949 to 23.8 percent in 1959 to 35 percent in 1969. This was at a time when only the children of the elite plus a handful of scholarship winners went to university in Europe.

The Defense Department and the National Science Foundation became the prime funders of much of America’s basic research—allocating money not just to great universities such as Bush’s MIT but also to big companies and to hybrid research organizations that straddled the division between academia and business such as RAND, the Stanford Research Institute, and Xerox PARC. The United States intensified its investment in the knowledge economy after the Soviets launched Sputnik on October 4, 1957, followed by the much larger Sputnik 2, with its dog, Laika, and its panel of scientific instruments just a month later. The Sputniks shook Americans out of their complacency: what will Americans find if they ever make it to the moon, a journalist once asked the physicist Edward Teller; “Russians” came the grim reply.14 Congress immediately declared “an educational emergency”: among the hair-raising revelations at the time was that 75 percent of schoolchildren didn’t study any physics whatsoever.

All in all, 50 percent more new drugs were approved by the Federal Drug Administration between 1940 and 1960 than in the fifty years after 1960.17 Against this should be set the fact that the number of cigarettes consumed per person increased from two thousand in 1940 to four thousand in 1970, with the majority of adults smoking regularly. Atomic power was a particularly striking version of the knowledge economy. The United States created the Atomic Energy Commission in 1946 to find peaceful uses for nuclear power, in part to offset the worryingly high cost of developing the atomic bomb in the first place. Nuclear swords would not be so controversial if they could also be used as nuclear plows. Eight years later, in 1954, it passed the Atomic Energy Act to encourage private companies to build nuclear reactors.


Cultural Backlash: Trump, Brexit, and Authoritarian Populism by Pippa Norris, Ronald Inglehart

affirmative action, Affordable Care Act / Obamacare, bank run, banking crisis, Berlin Wall, Bernie Sanders, Boris Johnson, Cass Sunstein, centre right, cognitive dissonance, conceptual framework, declining real wages, desegregation, Donald Trump, eurozone crisis, Fall of the Berlin Wall, feminist movement, first-past-the-post, illegal immigration, immigration reform, income inequality, job automation, knowledge economy, labor-force participation, land reform, liberal world order, longitudinal study, low skilled workers, mass immigration, meta analysis, meta-analysis, obamacare, open borders, open economy, post-industrial society, post-materialism, precariat, purchasing power parity, rising living standards, Ronald Reagan, sexual politics, Silicon Valley, statistical model, stem cell, War on Poverty, white flight, winner-take-all economy, women in the workforce, working-age population, World Values Survey, zero-sum game

Many changes are transforming the workforce and society in post-­industrial economies through the globalization of economic markets, compounded by the period-­effect linked with the deep financial crash and Eurozone sovereign debt crisis.54 There is overwhelming evidence of powerful trends toward growing wealth inequality and declining real income for most of the population in the West, based on the rise of the knowledge economy, technological automation, and the collapse of the manufacturing industry; the global flows of labor, goods, capital, and people (especially the inflow of migrants and refugees); the erosion of organized labor; shrinking welfare safety-­nets; and neo-­liberal austerity policies.55 The idea that economic conditions have deepened the cultural backlash is supported by studies of electoral geography reporting that Trump supporters were concentrated disproportionately in the Appalachian coal country, rural Mississippi, and rural counties in the Midwestern Rust Belt.56 In the 2016 US election, the Trump vote was correlated with areas dependent upon manufacturing sectors hit by the penetration of Chinese imports, particularly in Michigan, Wisconsin, Pennsylvania, and North Carolina.57 Similarly, in Brexit, support for the UK to Leave the EU was concentrated in northern England and the Midlands.58 Leave votes were disproportionately in ‘left-­behind’ areas characterized by low income, high unemployment, and historic dependence on manufacturing industry.59 In the second round of French presidential elections in 2017, Marine Le Pen’s National Front support was strongest in traditional areas of low-­skill employment with double digit unemployment in Northern France, as well as the traditional Mediterranean bastion, while Emmanuelle Macron won by a landslide in Paris and its affluent suburbs.60 And in the September 2017 Bundestag contests, Alternative for Germany attracted its highest share of the vote in former-­East Germany, which lags behind the more prosperous West.61 Similar regional findings are reported elsewhere in Western Europe.62 For all these reasons, we expect that economic conditions experienced in some local communities and at individual levels are likely to reinforce authoritarian and populist values.63 18 Understanding Populism Building on these observations, we theorize that the authoritarian reflex arising from long-­term processes of cultural change is likely to be accelerated and deepened by fears of economic insecurity, including the individual experience of the loss of secure, well-­paid blue-­collar jobs, and the collective experience of living in declining communities of the left-behinds.64 Material hardship is likely to make groups more susceptible to the anti-­establishment appeals of authoritarian-­populist actors, offering simple slogans blaming ‘Them’ for stripping prosperity, job opportunities, and public services from ‘Us.’65 This chapter considers evidence testing these arguments, at both the individual and community levels.

authoritarian and libertarian values, reverses earliest among the Baby Boom generation in Norway, Denmark, and Finland, all affluent post-­ industrial societies and long-­established liberal democracies, with strong egalitarian cultural traditions and comprehensive cradle-to-grave welfare states. Several Northern European societies show a similar profile, such as France, the Netherlands, and Switzerland – all affluent knowledge economies. By contrast, the tipping point is reached later (among Generation X, born in the mid-­1970s), in Mediterranean countries such as Spain, communist Greece, and Italy. The gap barely reverses itself in post-­ Europe, such as in Ukraine, Slovakia, Bulgaria, and in Turkey (where no reversal occurs), reflecting the sluggish economic growth and the later (and unstable) democratic development of several states in this region.

And urban elites look down on them for holding retrograde views about the flag, faith, and community that are no longer politically correct.12 Resentment of the establishment, and adherence to the older values of traditional Christian morality, fitting in, and deference toward authority (‘Queen and country’), are said to flourish among the ‘left-behinds.’13 Thomas Piketty’s influential work has called attention to rising levels of income and wealth inequality.14 In recent decades, the US and UK and other high-­income countries have experienced sharply rising income inequality; despite substantial economic growth, the gains have gone almost entirely to the top 10 percent of the population.15 Yet advanced economies differ, with income inequality rising much faster and further in the United States than in the European Union. Inequality has been exacerbated by growing automation and outsourcing, globalization, the erosion of labor unions, government austerity policies, the growth of the knowledge economy, and the limited capacity of governments to regulate investment decisions by multinational corporations or to stem migration flows. The financial crisis also reduced tax revenues and squeezed public sector borrowing, restricting the capacity of states to respond through welfare provisions. Piketty argues that inequality has been rising steeply in many advanced economies since about 1970.16 All but one of the OECD countries for which data are available saw growing income inequality before taxes and transfers from 1980 to 2009.


pages: 261 words: 57,595

China's Future by David Shambaugh

Berlin Wall, capital controls, demographic dividend, demographic transition, Deng Xiaoping, facts on the ground, financial intermediation, financial repression, Gini coefficient, high net worth, Kickstarter, knowledge economy, low skilled workers, market bubble, megacity, Mikhail Gorbachev, New Urbanism, offshore financial centre, open economy, Pearl River Delta, rent-seeking, secular stagnation, short selling, South China Sea, special drawing rights, too big to fail, urban planning, Washington Consensus, working-age population, young professional

The Key to Success: Innovation Innovation is the key test for China if it is to accomplish the overall macro-economic transition and become a fully modern society and economy. This is crucial if China is to avoid becoming stuck forever in the Middle Income Trap. The only way out of the trap (as Japan, South Korea, Taiwan, and other newly industrialized economies have demonstrated) is through innovation, which enables moving up the productivity and economic value chains. Becoming an innovative society and knowledge economy is the principal task facing the nation, and it is cited as such in all major government documents and leaders’ speeches. Yet, China’s economy today remains an assembly and processing economy, not a creative and inventive one. Moreover, most of the goods that are assembled or produced in China for export are intellectually created elsewhere. China’s rampant theft of intellectual property and its government programs to spur “indigenous innovation” (which pour billions into domestic R&D every year) are clear admissions of its failure to create.

Soft Authoritarianism, global impact healthcare heavy industry, energy demand of higher education / university system Himalayan glacial melt Hong Kong Hu Jintao Hu Yaobang “Hua Guofeng Interregnum” hukou system Huntington, Samuel Hurun China Rich List I “illusion of Chinese power” India Indian Ocean / Indo-Pacific region individualism Indonesia inequality innovation as key to success private sector vs. state sector insurance bank deposit health intellectual property intellectuals International Monetary Fund (IMF) international relations Europe future impact of China Global South military capabilities peripheral countries Russia see also United States (US) internet / social media investment and aid program EU foreign overinvestment problem R&D and trade, Asia J “J-Curve” concept Japan as newly industrializing economy (NIE) relations with jasmine revolution Jiang Zemin K Kissinger, Henry knowledge economy Krugman, Paul L labor market / workforce aging Lewis Turning Point migration social mobility land degradation Laos Lardy, Nicholas Latin America Lee Kuan Yew Leninist systems Lewis, W. Arthur Lewis Turning Point Li Keqiang Li Shiqiao liberal neo-authoritarianism local government debt protests against revenues and expenditures transparency and accountability Lou Jiwei low-wage manufacturing Lubman, Stanley M “Made in China 2025” program managed political reform from above manufacturing/industry chemical pollution / explosion energy demands high-end low-wage Mao Zedong mass unrest, incidents of Tiananmen Square demonstrations McKinsey & Company media sector megapolises Mekong River middle class, growth of Middle Income Trap migration and labor market military (PLA) anti-corruption campaign capabilities EU arms embargo innovation modernization program navy Russia and China, coordination US and China, comparison millionaires/billionaires modernization theorists multinational corporations Myanmar N National Budget Law National Bureau of Statistics National Development and Reform Commission (NDRC) National People’s Congress (NPC) National Security Law nationalism navy neo-authoritarianism, liberal Neo-Totalitarianism economy polity society vs.


pages: 223 words: 58,732

The Retreat of Western Liberalism by Edward Luce

"Robert Solow", 3D printing, affirmative action, Airbnb, basic income, Berlin Wall, Bernie Sanders, Boris Johnson, Branko Milanovic, Bretton Woods, business cycle, call centre, carried interest, centre right, Charles Lindbergh, cognitive dissonance, colonial exploitation, colonial rule, computer age, corporate raider, cuban missile crisis, currency manipulation / currency intervention, Dissolution of the Soviet Union, Doha Development Round, Donald Trump, double entry bookkeeping, Erik Brynjolfsson, European colonialism, everywhere but in the productivity statistics, Fall of the Berlin Wall, Francis Fukuyama: the end of history, future of work, George Santayana, gig economy, Gini coefficient, global pandemic, global supply chain, illegal immigration, imperial preference, income inequality, informal economy, Internet of things, Jaron Lanier, knowledge economy, lateral thinking, liberal capitalism, Marc Andreessen, Mark Zuckerberg, Martin Wolf, mass immigration, means of production, Monroe Doctrine, moral panic, more computing power than Apollo, mutually assured destruction, new economy, New Urbanism, Norman Mailer, offshore financial centre, one-China policy, Peace of Westphalia, Peter Thiel, plutocrats, Plutocrats, precariat, purchasing power parity, reserve currency, reshoring, Richard Florida, Robert Gordon, Ronald Reagan, Second Machine Age, self-driving car, sharing economy, Silicon Valley, Skype, Snapchat, software is eating the world, South China Sea, Steve Jobs, superstar cities, telepresence, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, Thomas L Friedman, Tyler Cowen: Great Stagnation, universal basic income, unpaid internship, Washington Consensus, We are the 99%, We wanted flying cars, instead we got 140 characters, white flight, World Values Survey, Yogi Berra

What has befallen the West’s blue-collar workforce in the last generation is the shift of routine physical tasks to the factory floors of the developing world. This was enabled by the relentless drop in the cost of transport. What steam did in the nineteenth century, aeroplanes, supertankers and mechanised ports did for the last third of the twentieth century. The explosion of communications technology in the twenty-first century is enabling Western companies to do precisely the same in the knowledge economy today. Companies’ ability to go offshore via diversified global supply chains is no longer confined to physical goods. In the short term it is not artificial intelligence the West should worry about. It is what Baldwin calls remote intelligence. In some respects it has already arrived. Over the last twenty years, India and the Philippines reaped the rewards of the telecoms revolution to create lower-skilled service sector jobs at call centres, and on technology helpdesks.

(essay), 5, 14, 181 Garten, Jeffrey, From Silk to Silicon, 25 Gates, Bob, 177–8 gay marriage issue, 187, 188 gender, 57 General Agreement on Tariffs and Trade (GATT), 72 Genghis Khan, 25 gentrification, creeping, 46, 48, 50–1 Georgia, Rose Revolution (2003), 79 Germany, 15, 42, 43, 57, 78, 115; far-right resurgence in, 139–40; and future of EU, 180; Nazi, 116, 117, 155, 171; post-war constitution, 116; rise of from late nineteenth century, 156–7; Trump’s attitude towards, 179–80; vocational skills education, 197 gig economy, 62–5 Gladiator (film), 128–9 Glass, Ruth, 46 global economy: centre of gravity shifting eastwards, 21–2, 141; change of guard (January 2017), 19–20, 26–7; emerging middle classes, 21, 31, 39, 159; end of Washington Consensus, 29–30; fast-growing non-Western economies, 20–2; Great Convergence, 12, 13, 24, 25–33; Great Divergence, 13, 22–5; Great Recession, 63–4, 83–4, 192, 193; new protectionism, 19–20, 73, 149; ‘precariat’ (‘left-behinds’), 12, 13, 43–8, 50, 91, 98–9, 110, 111, 131; rapid expansion of China, 20–2, 25–8, 157, 159; spread of market economics, 8, 29; West’s middle-income problem, 13, 31–2, 34–41; see also globalisation, economic; growth, economic globalisation, economic: China as new guardian of, 19–20, 26–7; Bill Clinton on, 26; in decades preceding WW1, 155; Elephant Chart, 31–3; Friedman’s Golden Straitjacket, 74; Jeffrey Garten’s history of, 25; and global trilemma, 72–3; and multinational companies, 26–7; need to abandon deep globalisation, 73–4; next wave of, 32; radical impact of, 12–13; and stateless elites, 51, 71; and Summers’ responsible nationalism, 71–2; and technology, 55–6, 73, 174 Gongos (government-organised non-governmental organisations), 85 Google, 54, 67 Gordon, Robert, The Rise and Fall of American Growth, 57–8, 59–61 Graham, Lindsey, 134 Greece: classical, 4, 10, 25, 137–8, 156, 200; overthrow of military junta, 77 Greenspan, Alan, 71 growth, economic: and bad forecasting, 27; as Bell’s ‘secular religion’, 37; and digital economy, 54–5, 59, 60; Elephant Chart, 31–3; emerging economies as engine of, 21, 30, 31, 32; Golden Age for Western middle class, 33–4, 43; Robert Gordon’s thesis, 57–8, 59–61; and levels of trust, 38–9; as liberal democracy’s strongest glue, 13, 37, 103, 201–2; out-dated measurement models, 30–1; technological leap forward (from 1870), 58–9; West’s middle-income problem, 13, 31–2, 34–41 Hamilton, Alexander, 78 Harvard University, 44–5 healthcare and medicine, 35, 36, 42, 58, 59, 60, 62, 102, 103, 198 Hedges, Chris, Empire of Illusion, 125 Hegel, Friedrich, 161–2 Heilbroner, Robert, 10 Hispanics in USA, 94–5 history: 1930s extremism, 116–17; Chinese economy to 1840s, 22–3; Fukuyama’s ‘end of history’, 5, 14, 181; Great Divergence, 13, 22–5; Hobson’s prescience over China, 20–1; and inequality, 41–3; and journalists, 15; Keynes’ view, 153–5; Magna Carta, 9–10; of modern democracy, 112–17; nineteenth-century protectionism, 78; nineteenth-century European diplomacy, 7–8, 155–6, 171–2; non-Western versions of, 11; Obama on, 190; Peace of Westphalia (1648), 171; populist surge in late-nineteenth-century USA, 110–11; post-war golden era, 33–4, 43; post-war US foreign policy, 183–4; technological leap forward (from 1870), 58–9; theories of, 10–11, 14, 190; Thucydides trap, 156–7; utopian faith in technology, 127–8; Western thought on China, 158–9, 161–2; ‘wrong side of history’ language, 187–8, 190, 191–2; Zheng He’s naval fleet, 165–6; see also Cold War; Industrial Revolution Hitler, Adolf, 116, 128, 171 Hobbes, Thomas, 104 Hobsbawm, Eric, 5 Hobson, John, 20, 22–3 Hofer, Norbert, 15–16 homosexuality, 106, 107, 109–10 Hong Kong, 163–4 Hourly Nerd, 63 Hu Jintao, 159 Humphrey, Hubert, 189 Hungary, 12, 82, 138–9, 181 Huntington, Samuel, The Clash of Civilizations, 181 Huxley, Aldous, Brave New World, 128, 129 illiberal democracy concept, 119, 120, 136–7, 138–9, 204 India: caste system, 202; circular view of history, 11; colonial exploitation of, 22, 23, 55–6; democracy in, 201; future importance of, 167, 200–1; and Industrial Revolution, 23–4; internal migration in, 41; as nuclear power, 175; and offshoring, 61–2; pre-Industrial Revolution economy, 22; rapid expansion of, 21, 25, 28, 30, 58, 200, 201–2; Sino-Indian war (1962), 166; as ‘young’ society, 39, 200 Indonesia, 21 Industrial Revolution, 13, 22, 23–4, 46, 53; non-Western influences on, 24–5; and steam power, 24, 55–6 inequality: decline in post-war golden era, 43; and demophobia, 122–3; forces of equalisation, 41–3; global top 1 per cent, 32–3, 50–1; growth of in modern era, 13, 41, 43–51; in India, 202; in liberal cities, 49–51; in nineteenth century, 41; and physical segregation, 46–8; urban–hinterland split, 46–51 infant mortality, 58, 59 inflation, 36 Instagram, 54 intelligence agencies, 133–4 intolerance and incivility, 38 Iran, 175, 193, 194 Iraq War (2003), 8, 81, 85, 156 Isis (Islamic State), 178, 181, 182–3 Islam, 24–5; Trump’s targeting of Muslims, 135, 181–3, 195–6 Israel, 175 Jackson, Andrew, 113–14, 126, 134 Jacobi, Derek, 128–9 Japan, 78, 167, 175 Jefferson, Thomas, 56, 112, 163 Jobs, Steve, 25 Johnson, Boris, 48, 118–19 Jones, Dan, 9 Jospin, Lionel, 90 journalists, 15, 65 judiciary, US, 134–5 Kant, Immanuel, 126 Kaplan, Fred, Dark Territory: The Secret History of Cyber War, 176–8 Kennedy, John F., 146, 165 Kerry, John, 8 Keynes, John Maynard, 153–5, 156 Khan, A.Q., 175 Khan, Sadiq, 49–50 Kissinger, Henry, 14, 162, 166 knowledge economy, 47, 61 Kreider, Tim, 111 Krugman, Paul, 162 Ku Klux Klan, 98, 111 labour markets: and digital revolution, 52–5, 56, 61–8; and disappearing growth, 37; driving jobs, 56–7, 63, 191; gig economy, 62–5; offshoring, 61–2; pressure to postpone retirement, 64; revolution in nature of work, 60–6, 191–3; security industry, 50; status of technical and service jobs, 197–8; and suburban crisis, 46; wage theft, 192; zero hours contracts, 191 Lanier, Jaron, 66, 67 Larkin, Philip, 188 Le Pen, Marine, 15, 102, 108–10 League of Nations, 155 Lee, Spike, 46 Lee Teng-hui, 158 left-wing politics: and automation, 67; decline in salience of class, 89–92, 107, 108–10; elite’s divorce from working classes, 87–8, 89–95, 99, 109, 110, 119; in France, 105–10; Hillaryland in USA, 87–8; and ‘identity liberalism’, 14, 96–8; McGovern–Fraser Commission (1972), 189; move to personal liberation (1960s), 188–9; populist right steals clothes of, 101–3; Third Way, 89–92; urban liberal elites, 47, 49–51, 71, 87–9, 91–5, 110, 204 Lehman Brothers, 30 Li, Eric, 86, 163–4 liberalism, Western: Chinese hostility to, 84–6, 159–60, 162; crisis as real and structural, 15–16; declining belief in ‘meritocracy’, 44–6; declining hegemony of, 14, 21–2, 26–8, 140–1, 200–1; elites as out of touch, 14, 68–71, 73, 87–8, 91–5, 110, 111, 119, 204; and ‘identity liberalism’, 14, 96–8; linear view of history, 10–11; Magna Carta as founding myth of, 9–10; majority-white backlash concept, 12, 14, 96, 102, 104; psychology of dashed expectations, 34–41; scepticism as basis of, 10; and Trump’s victory, 11–12, 28, 79, 81, 111; ‘wrong side of history’ language, 187–8, 190, 191–2; see also democracy, liberal Lilla, Mark, 96, 98 Lincoln, Abraham, 146 Lindbergh, Charles, 117 literacy, mass, 43, 59 Lloyd George, David, 42 Locke, John, 104 London, 46, 47, 48, 49–50, 140 Los Angeles, 50 Machiavelli, Niccolò, 133 Magna Carta, 9–10 Mahbubani, Kishore, 162 Mailer, Norman, Miami and the Siege of Chicago, 189 Mair, Peter, 88, 89, 118 Mann, Thomas, 203 Mao Zedong, 163, 165 Marconi, Guglielmo, 128 Marcos, Ferdinand, 136 Marshall, John, 134 Marshall Plan, 29 Marxism, 10, 11, 51, 68, 106, 110, 162 Mattis, Jim, 150–1 May, Theresa, 100, 152, 153 McAfee, Andrew, 60 McCain, John, 134 McMahon, Vince and Linda, 124, 125 McMaster, H.


pages: 364 words: 99,897

The Industries of the Future by Alec Ross

23andMe, 3D printing, Airbnb, algorithmic trading, AltaVista, Anne Wojcicki, autonomous vehicles, banking crisis, barriers to entry, Bernie Madoff, bioinformatics, bitcoin, blockchain, Brian Krebs, British Empire, business intelligence, call centre, carbon footprint, cloud computing, collaborative consumption, connected car, corporate governance, Credit Default Swap, cryptocurrency, David Brooks, disintermediation, Dissolution of the Soviet Union, distributed ledger, Edward Glaeser, Edward Snowden, en.wikipedia.org, Erik Brynjolfsson, fiat currency, future of work, global supply chain, Google X / Alphabet X, industrial robot, Internet of things, invention of the printing press, Jaron Lanier, Jeff Bezos, job automation, John Markoff, Joi Ito, Kickstarter, knowledge economy, knowledge worker, lifelogging, litecoin, M-Pesa, Marc Andreessen, Mark Zuckerberg, Mikhail Gorbachev, mobile money, money: store of value / unit of account / medium of exchange, Nelson Mandela, new economy, offshore financial centre, open economy, Parag Khanna, paypal mafia, peer-to-peer, peer-to-peer lending, personalized medicine, Peter Thiel, precision agriculture, pre–internet, RAND corporation, Ray Kurzweil, recommendation engine, ride hailing / ride sharing, Rubik’s Cube, Satoshi Nakamoto, selective serotonin reuptake inhibitor (SSRI), self-driving car, sharing economy, Silicon Valley, Silicon Valley startup, Skype, smart cities, social graph, software as a service, special economic zone, supply-chain management, supply-chain management software, technoutopianism, The Future of Employment, Travis Kalanick, underbanked, Vernor Vinge, Watson beat the top human players on Jeopardy!, women in the workforce, Y Combinator, young professional

To this end, the core question for China’s future is whether its model of relative economic openness but tight political control can foster real innovation. Thus far, it seems that its knowledge economy has been hampered. For example, China’s successes in the Internet economy have all come from either building Chinese versions of technologies previously invented in the United States or Canada (and often stealing the intellectual property to do it) or from providing low-cost manufacturing to build the hardware for non-Chinese companies. But while the control-freak impulse from Beijing has hindered the development of China’s knowledge economy, it hasn’t killed off the spirit of Chinese innovation. Jack Dorsey senses a level of vibrancy coming from China’s entrepreneurs. He told me, “The people working at the companies have a feeling like they can create anything and really take on the world.

As globalization and innovation challenged the lifestyles of many of those living in industrial cities and states in the West, it bolstered the economic growth of up-and-coming nations. Beyond developing nations, individuals and states all over the world that took advantage of the wave of technological innovation flourished. Our most valued commodities have gone from salt and sugar to chemicals and fuels to data and services. The regions that provide those now lead the global knowledge economy. Twenty-five hundred miles from Charleston, West Virginia, several trillion dollars of wealth was generated in Silicon Valley in addition to products that fundamentally changed the way everyone reading this book lives. THE INDUSTRIES OF THE FUTURE The book I know my parents or grandparents wish they had read in the 1960s would have described what globalization was going to do to the world.


pages: 378 words: 110,518

Postcapitalism: A Guide to Our Future by Paul Mason

Alfred Russel Wallace, bank run, banking crisis, banks create money, Basel III, basic income, Bernie Madoff, Bill Gates: Altair 8800, bitcoin, Branko Milanovic, Bretton Woods, BRICs, British Empire, business cycle, business process, butterfly effect, call centre, capital controls, Cesare Marchetti: Marchetti’s constant, Claude Shannon: information theory, collaborative economy, collective bargaining, Corn Laws, corporate social responsibility, creative destruction, credit crunch, currency manipulation / currency intervention, currency peg, David Graeber, deglobalization, deindustrialization, deskilling, discovery of the americas, Downton Abbey, drone strike, en.wikipedia.org, energy security, eurozone crisis, factory automation, financial repression, Firefox, Fractional reserve banking, Frederick Winslow Taylor, full employment, future of work, game design, income inequality, inflation targeting, informal economy, information asymmetry, intangible asset, Intergovernmental Panel on Climate Change (IPCC), Internet of things, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, Kenneth Arrow, Kevin Kelly, Kickstarter, knowledge economy, knowledge worker, late capitalism, low skilled workers, market clearing, means of production, Metcalfe's law, microservices, money: store of value / unit of account / medium of exchange, mortgage debt, Network effects, new economy, Norbert Wiener, Occupy movement, oil shale / tar sands, oil shock, Paul Samuelson, payday loans, Pearl River Delta, post-industrial society, precariat, price mechanism, profit motive, quantitative easing, race to the bottom, RAND corporation, rent-seeking, reserve currency, RFID, Richard Stallman, Robert Gordon, Robert Metcalfe, secular stagnation, sharing economy, Stewart Brand, structural adjustment programs, supply-chain management, The Future of Employment, the scientific method, The Wealth of Nations by Adam Smith, Transnistria, union organizing, universal basic income, urban decay, urban planning, Vilfredo Pareto, wages for housework, WikiLeaks, women in the workforce

In addition to utility for the user of a telephone and revenue for the owner, he noticed a third thing: the more people join the network, the more useful it becomes to everybody. The problem comes when you try to measure and capture that third thing. Robert Metcalfe, the inventor of the Ethernet switch, claimed in 1980 that a network’s value is ‘the number of users squared’. So while the cost of building a network rises in a straight line, its value rises in an exponential curve.38 By implication the art of doing business in a knowledge economy is to capture everything between the straight line and the rising curve. But how do we measure value? In terms of money saved, revenue earned or profits accrued? In 2013, the OECD’s economists agreed that it could not be captured by traditional market metrics. ‘While the Internet’s impact on market transactions and value added has been undoubtedly far-reaching,’ they wrote, ‘its effect on non-market interactions … is even more profound.’39 Economists have tended to ignore non-market interactions: they are, by definition, non-economic – as insignificant as a smile passed between two customers in the Starbucks queue.

The great technological advance of the early twenty-first century consists not of new objects but of old ones made intelligent. The knowledge content of products is becoming more valuable than the physical elements used to produce them. In the 1990s, as the impact of info-tech began to be understood, people from several disciplines had the same thought at once: capitalism is becoming qualitatively different. Buzz phrases appeared: the knowledge economy, the information society, cognitive capitalism. The assumption was that info-capitalism and the free-market model worked in tandem; one produced and reinforced the other. To some the change looked big enough to conclude it was as important as the move from merchant capitalism to industrial capitalism in the eighteenth century. But just as economists got busy explaining how this ‘third kind of capitalism’ works, they ran into a problem: it doesn’t.

It’s not popular because it’s not very useful for calculating and predicting movements within a functioning and stable market system. But faced with the rise of info-capitalism, which is corroding price mechanisms, ownership and the connection between work and wages, the labour-theory is the only explanation that does not collapse. It is the only theory that allows us to properly model where value is created in a knowledge economy, and where it ends up. The labour-theory tells us how to measure value in an economy where machines can be built for free and last for ever. WORK IS THE SOURCE OF VALUE Amid the empty shops in the run-down high street of Kirkcaldy, Scotland, there is a branch of Gregg’s. Gregg’s sells high-fat food at low prices and is one of the few places busy at lunchtime. A glance at Scotland’s poverty map gives the context: the town is dotted with areas of extreme deprivation and ill health.1 On the wall outside Gregg’s is a plaque marking the house where Adam Smith wrote The Wealth of Nations.


pages: 187 words: 62,861

The Penguin and the Leviathan: How Cooperation Triumphs Over Self-Interest by Yochai Benkler

business process, California gold rush, citizen journalism, Daniel Kahneman / Amos Tversky, East Village, Everything should be made as simple as possible, experimental economics, experimental subject, framing effect, informal economy, invisible hand, jimmy wales, job satisfaction, Joseph Schumpeter, Kenneth Arrow, knowledge economy, laissez-faire capitalism, loss aversion, Murray Gell-Mann, Nicholas Carr, peer-to-peer, prediction markets, Richard Stallman, Scientific racism, Silicon Valley, Steven Pinker, telemarketer, Toyota Production System, twin studies, ultimatum game, Washington Consensus, zero-sum game, Zipcar

What made the early work on commons, like Ostrom’s Nobel-winning work or Acheson’s on lobster gangs, so influential is that they began the long process of empirical debunking of the then-prevailing view that commons in which rules are enforced by norms are necessarily doomed to fail. Intellectually, these studies set the background for the explosive growth in commons-based practices in the twenty-first century. For the commons has finally come into its own. Because in today’s knowledge economy, the most valuable resources—information and knowledge—are themselves a public good, and the best way to develop and maximize this good is through millions of networked people pooling that knowledge and working together to create new products, ideas, and solutions. And no example better shows how successful norms can organize this very kind of cooperation than Wikipedia. Wikipedia’s Neutral Point of View I first began studying Wikipedia in the summer of 2001, about four months after it launched.

It doesn’t take a multimillion-dollar package to attract talent to run for U.S. president, for example; the power, excitement, respect (sometimes), and other intrinsic rewards of the job are more than enough to draw many impressive candidates. Similarly, $900,000 per year (compared to tens of millions of dollars in the United States) at the Japanese automobile firms was more than enough to attract leading executives to the top positions. Another example, near and dear to my own heart, is academia. The leading American universities are widely known for attracting the top scientific minds in the world. In today’s knowledge economy, ever more dependent on innovation and technological advances, the top researchers who teach at these universities would all have much higher-paying salaries if they were to work for companies, be they Merck or Microsoft. Yet thousands of the most qualified, intelligent, creative, and educated people in the world choose to earn vastly less (in some cases hundreds of thousands of dollars a year less) in academia instead of taking their skills to the private sector.


pages: 552 words: 168,518

MacroWikinomics: Rebooting Business and the World by Don Tapscott, Anthony D. Williams

accounting loophole / creative accounting, airport security, Andrew Keen, augmented reality, Ayatollah Khomeini, barriers to entry, Ben Horowitz, bioinformatics, Bretton Woods, business climate, business process, buy and hold, car-free, carbon footprint, Charles Lindbergh, citizen journalism, Clayton Christensen, clean water, Climategate, Climatic Research Unit, cloud computing, collaborative editing, collapse of Lehman Brothers, collateralized debt obligation, colonial rule, commoditize, corporate governance, corporate social responsibility, creative destruction, crowdsourcing, death of newspapers, demographic transition, disruptive innovation, distributed generation, don't be evil, en.wikipedia.org, energy security, energy transition, Exxon Valdez, failed state, fault tolerance, financial innovation, Galaxy Zoo, game design, global village, Google Earth, Hans Rosling, hive mind, Home mortgage interest deduction, information asymmetry, interchangeable parts, Internet of things, invention of movable type, Isaac Newton, James Watt: steam engine, Jaron Lanier, jimmy wales, Joseph Schumpeter, Julian Assange, Kevin Kelly, Kickstarter, knowledge economy, knowledge worker, Marc Andreessen, Marshall McLuhan, mass immigration, medical bankruptcy, megacity, mortgage tax deduction, Netflix Prize, new economy, Nicholas Carr, oil shock, old-boy network, online collectivism, open borders, open economy, pattern recognition, peer-to-peer lending, personalized medicine, Ray Kurzweil, RFID, ride hailing / ride sharing, Ronald Reagan, Rubik’s Cube, scientific mainstream, shareholder value, Silicon Valley, Skype, smart grid, smart meter, social graph, social web, software patent, Steve Jobs, text mining, the scientific method, The Wisdom of Crowds, transaction costs, transfer pricing, University of East Anglia, urban sprawl, value at risk, WikiLeaks, X Prize, young professional, Zipcar

New hot spots for innovation are increasingly flourishing outside of the traditional sphere of VC operations rooted in established innovation centers like Boston, New York, and Silicon Valley, causing VCs to expand their circles. Yet many VCs won’t even look at a business plan, let alone hear a pitch, from someone who doesn’t come highly referred. The theory is that if a VC relies on a trusted network of contacts s/he can effectively lessen the number of crappy ideas that s/he has to sift through to find a golden nugget. But in today’s global knowledge economy, the next Facebook, Google, or Tesla Motors is as likely to be born in Tel Aviv as it is to be born in Silicon Valley, as likely in Bangalore as in Boston. And while the “old boys’ network” is good if you are an old boy, it’s not so good if you are a young woman from Brazil with a billion-dollar business innovation. Unfortunately, an unfavorable economic climate has prevented many VCs from exploring new opportunities.

The cost of building new continuing education programs from scratch could be prohibitively high, but new models of collaborative education can help bring greater efficiency and creativity to the efforts to help graduating students and aging employees update their skills.23 Indeed, why not allow companies and governments to participate in this global network for higher learning too? Fees collected from commercial users could be used to subsidize ongoing development of the platform. TIME FOR REINVENTION OR ATROPHY? The combination of the new Web, the new generation of learners, the demands of the global knowledge economy, and shock of the economic crisis is creating a perfect storm for the universities, and the storm warnings of change are everywhere. In 1997, none other than Peter Drucker predicted that big universities would be “relics” within thirty years.24 Today, Drucker’s seemingly hyperbolic and apocryphal predictions seem less shrill and even prescient. Some universities and some faculty are more vulnerable than others.

In a typical funding scenario, government agencies put out an RFP (request for proposals) and scientists compete rather than collaborate to win it. They typically go off to do their research privately, and when it’s done they report the results back to their funders, who eventually publish it for others. It’s closed. It’s anticollaborative. And it’s antithetical to the demands of the global knowledge economy. Rather than turn inward, or focus narrowly on national goals, funding bodies should open up and create a truly open market for science funding—one that rewards only the most qualified candidates and doesn’t pay heed to passports, seniority, or star status. Sure, this arguably undermines one of the key reasons why many funding bodies exist: to promote national science objectives and national research institutions.


pages: 626 words: 167,836

The Technology Trap: Capital, Labor, and Power in the Age of Automation by Carl Benedikt Frey

"Robert Solow", 3D printing, autonomous vehicles, basic income, Bernie Sanders, Branko Milanovic, British Empire, business cycle, business process, call centre, Capital in the Twenty-First Century by Thomas Piketty, Clayton Christensen, collective bargaining, computer age, computer vision, Corn Laws, creative destruction, David Graeber, David Ricardo: comparative advantage, deindustrialization, demographic transition, desegregation, deskilling, Donald Trump, easy for humans, difficult for computers, Edward Glaeser, Elon Musk, Erik Brynjolfsson, everywhere but in the productivity statistics, factory automation, falling living standards, first square of the chessboard / second half of the chessboard, Ford paid five dollars a day, Frank Levy and Richard Murnane: The New Division of Labor, full employment, future of work, game design, Gini coefficient, Hyperloop, income inequality, income per capita, industrial cluster, industrial robot, intangible asset, interchangeable parts, Internet of things, invention of agriculture, invention of movable type, invention of the steam engine, invention of the wheel, Isaac Newton, James Hargreaves, James Watt: steam engine, job automation, job satisfaction, job-hopping, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Joseph Schumpeter, Kickstarter, knowledge economy, knowledge worker, labor-force participation, labour mobility, Loebner Prize, low skilled workers, Malcom McLean invented shipping containers, manufacturing employment, mass immigration, means of production, Menlo Park, minimum wage unemployment, natural language processing, new economy, New Urbanism, Norbert Wiener, oil shock, On the Economy of Machinery and Manufactures, Pareto efficiency, pattern recognition, pink-collar, Productivity paradox, profit maximization, Renaissance Technologies, rent-seeking, rising living standards, Robert Gordon, robot derives from the Czech word robota Czech, meaning slave, Second Machine Age, secular stagnation, self-driving car, Silicon Valley, Simon Kuznets, social intelligence, speech recognition, spinning jenny, Stephen Hawking, The Future of Employment, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, Thomas Malthus, total factor productivity, trade route, Triangle Shirtwaist Factory, Turing test, union organizing, universal basic income, washing machines reduced drudgery, wealth creators, women in the workforce, working poor, zero-sum game

In 1800, about 2–3 percent of the population of the Ottoman Empire was literate, compared to 60 percent of adult males and 40 percent of adult females in Britain (D. Acemoglu and J. A. Robinson, 2012, Why Nations Fail: The Origins of Power, Prosperity and Poverty [New York: Crown Business], 207–8). 42. Ibid., 80. 43. For efforts by the ruling classes to block replacing technologies, see chapters 1 and 3. 44. J. Mokyr, 2002, The Gifts of Athena: Historical Origins of the Knowledge Economy (Princeton, NJ: Princeton University Press), 232. 45. J. Mokyr, 1992b, “Technological Inertia in Economic History,” Journal of Economic History 52 (2): 331–32. 46. D. S. Landes, 1969, The Unbound Prometheus: Technological Change and Development in Western Europe from 1750 to the Present (Cambridge: Cambridge University Press), 8. 47. Quoted in C. Curtis, 1983, “Machines vs. Workers,” New York Times, February 8. 48.

On markets and clocks, see Boerner and Severgnini, 2015, “Time for Growth.” 52. There was significant productivity growth in watch making from the late seventeenth century onward, but the industry was tiny. See M. Kelly and C. Ó Gráda, 2016, “Adam Smith, Watch Prices, and the Industrial Revolution,” Quarterly Journal of Economics 131 (4): 1727–52. 53. On the price of books, see J. Van Zanden, 2004, “Common Workmen, Philosophers and the Birth of the European Knowledge Economy” (paper for Global Economic History Network Conference, Leiden, September 16–18). 54. Cardwell, 2001, Wheels, Clocks, and Rockets, 55. 55. On the numbers of books published, see ibid., 49. 56. G. Clark, 2001. “The Secret History of the Industrial Revolution” (Working paper, University of California, Davis), 60. 57. J. E. Dittmar, 2011, “Information Technology and Economic Change: The Impact of the Printing Press,” Quarterly Journal of Economics 126 (3): 1133–72. 58.

Mokyr, J. 2000. “Why ‘More Work for Mother?” Knowledge and Household Behavior, 1870–1945.” Journal of Economic History 60 (1): 1–41. Mokyr, J. 2001. “The Rise and Fall of the Factory System: Technology, Firms, and Households Since the Industrial Revolution.” Carnegie-Rochester Conference Series on Public Policy 55 (1): 1–45. Mokyr, J. 2002. The Gifts of Athena: Historical Origins of the Knowledge Economy. Princeton, NJ: Princeton University Press. Mokyr, J. 2011. The Enlightened Economy: Britain and the Industrial Revolution, 1700–1850. London: Penguin. Kindle. Mokyr, J., and H. Voth. 2010. “Understanding Growth in Europe, 1700–1870: Theory and Evidence.” In The Cambridge Economic History of Modern Europe, edited by S. Broadberry and K. O’Rourke, 1:7–42. Cambridge: Cambridge University Press.


pages: 409 words: 118,448

An Extraordinary Time: The End of the Postwar Boom and the Return of the Ordinary Economy by Marc Levinson

affirmative action, airline deregulation, banking crisis, Big bang: deregulation of the City of London, Boycotts of Israel, Bretton Woods, business cycle, Capital in the Twenty-First Century by Thomas Piketty, car-free, Carmen Reinhart, central bank independence, centre right, clean water, deindustrialization, endogenous growth, falling living standards, financial deregulation, floating exchange rates, full employment, George Gilder, Gini coefficient, global supply chain, income inequality, income per capita, indoor plumbing, informal economy, intermodal, invisible hand, Kenneth Rogoff, knowledge economy, late capitalism, linear programming, manufacturing employment, new economy, Nixon shock, North Sea oil, oil shock, Paul Samuelson, pension reform, price stability, purchasing power parity, refrigerator car, Right to Buy, rising living standards, Robert Gordon, rolodex, Ronald Coase, Ronald Reagan, Simon Kuznets, statistical model, strikebreaker, structural adjustment programs, The Rise and Fall of American Growth, Thomas Malthus, total factor productivity, unorthodox policies, upwardly mobile, War on Poverty, Washington Consensus, Winter of Discontent, Wolfgang Streeck, women in the workforce, working-age population, yield curve, Yom Kippur War, zero-sum game

As quality improved, more affluent buyers in other countries were willing to give Japanese models a chance. The yen’s sharp rise against the dollar in 1978 did little to dent sales. By then, Japanese cars were common sights in the United States, where they accounted for one-fourth of automobile sales in 1980.15 As MITI’s planners had envisioned, small cars were just the leading edge of Japan’s new “knowledge economy.” Japan’s research and development spending per worker rose 70 percent during the 1970s, after adjusting for inflation, turning Japan from a maker of copycat products to a source of innovation. As the credo “lighter, thinner, shorter, and smaller” spread across Japanese industry, high-speed computers, advanced cameras with top-notch optics, numerically controlled machine tools, and high-capacity color photocopiers began pouring out of factories.

., 82 Jamaica, 244 Japan, 63, 66–67, 81, 115–129, 163, 164, 233; administrative management in, 178; anti-inflation campaign in, 118–119; automobile industry in, 122–123; bank loans to Third World and, 241, 242; banks/banking system in, 94 (see also Bank of Japan; banks/banking systems); budget deficits in, 150; debt crisis in, 247, 251; decline of old economy of cheap labor and energy in, 118, 121–122; deregulation in, 113; economic crisis of 1990s in, 270; economic growth in, contributors to, 116–117; economic inefficiency in, 117; economic planning in, 25, 117, 123; economic slowdown in, 3–4; economic stagnation in, 261; economy at close of World War II in, 17, 18, 19; education in, 145; environmentalism in, 62; income distribution in, 140; income per person in, 6, 116; income tax in, 147, 149, 164; inflation and buying power in, 56; inflation in, 164; knowledge economy in, 123; labor productivity in, 257; labor share in, 141–142; manufacturing and trade in, 11, 116, 118, 119, 123, 124–129, 131, 137, 261; Ministry of International Trade and Industry, 25, 116, 117, 118, 120, 121, 123, 125, 129; modernization in, 117; new economy of engineering and design in, 122; oil crisis of 1973 in, 2–3, 72, 74, 77–78, 115–119, 122–124, 240; oil crisis of 1970s in, 177–178; operation scale-down in, 118; political parties in, 178; postwar economic boom in, 20; postwar productivity in, 23, 24; privatization in, 215–216; productivity bust in, 259, 268; productivity growth in, 263; productivity slowdown in, 265; service sector in, 117, 123–124; textile/apparel sector in, 119–120; trade with United States and, 119–120; unemployment scheme in, 121; ungovernability in, 156–160; US trade sanctions against, 128–129; wage, training, and job seeking subsidies in, 121; welfare state in, 18, 145 jawboning, 76–77 Jenkins, Peter, 150, 169 John Paul II, 219 Johnson, Lyndon, 145, 162; “guns and butter” model and, 48–49 Johnson administration, 222 Jones, Jack, 169 Jordan, 69 Joseph, Sir Keith, 176; free-market economics and, 172, 260 Kahn, Alfred, 112 Kaufman, Henry, 66, 232 Kennedy, Edward, 112 Kennedy, John F., 26, 144–145; inflation and, 261; unemployment and, 261 Kennedy administration, 222 Kenya, 44 Keynes, John Maynard, 31 Kiesinger, Kurt Georg, 33 Kissinger, Henry, 70 Klasen, Karl, 55 Kleinwort Benson, 84 knowledge economy, 123 Kohl, Helmut, 10, 177, 213 Korea, 242, 265 Korean Peninsula, 44 Korean War, 4, 20, 122 Krauss, Ellis, 177 Krippner, Greta, 236 Kuczynski, Pedro Pablo, 255 Kuwait, 70 Kuznets, Simon, 133–136; gross national product and, 134; stages of economic growth and, 134–135 Kuznets curve, 134–135 labor productivity, 257–258.

., 82 Jamaica, 244 Japan, 63, 66–67, 81, 115–129, 163, 164, 233; administrative management in, 178; anti-inflation campaign in, 118–119; automobile industry in, 122–123; bank loans to Third World and, 241, 242; banks/banking system in, 94 (see also Bank of Japan; banks/banking systems); budget deficits in, 150; debt crisis in, 247, 251; decline of old economy of cheap labor and energy in, 118, 121–122; deregulation in, 113; economic crisis of 1990s in, 270; economic growth in, contributors to, 116–117; economic inefficiency in, 117; economic planning in, 25, 117, 123; economic slowdown in, 3–4; economic stagnation in, 261; economy at close of World War II in, 17, 18, 19; education in, 145; environmentalism in, 62; income distribution in, 140; income per person in, 6, 116; income tax in, 147, 149, 164; inflation and buying power in, 56; inflation in, 164; knowledge economy in, 123; labor productivity in, 257; labor share in, 141–142; manufacturing and trade in, 11, 116, 118, 119, 123, 124–129, 131, 137, 261; Ministry of International Trade and Industry, 25, 116, 117, 118, 120, 121, 123, 125, 129; modernization in, 117; new economy of engineering and design in, 122; oil crisis of 1973 in, 2–3, 72, 74, 77–78, 115–119, 122–124, 240; oil crisis of 1970s in, 177–178; operation scale-down in, 118; political parties in, 178; postwar economic boom in, 20; postwar productivity in, 23, 24; privatization in, 215–216; productivity bust in, 259, 268; productivity growth in, 263; productivity slowdown in, 265; service sector in, 117, 123–124; textile/apparel sector in, 119–120; trade with United States and, 119–120; unemployment scheme in, 121; ungovernability in, 156–160; US trade sanctions against, 128–129; wage, training, and job seeking subsidies in, 121; welfare state in, 18, 145 jawboning, 76–77 Jenkins, Peter, 150, 169 John Paul II, 219 Johnson, Lyndon, 145, 162; “guns and butter” model and, 48–49 Johnson administration, 222 Jones, Jack, 169 Jordan, 69 Joseph, Sir Keith, 176; free-market economics and, 172, 260 Kahn, Alfred, 112 Kaufman, Henry, 66, 232 Kennedy, Edward, 112 Kennedy, John F., 26, 144–145; inflation and, 261; unemployment and, 261 Kennedy administration, 222 Kenya, 44 Keynes, John Maynard, 31 Kiesinger, Kurt Georg, 33 Kissinger, Henry, 70 Klasen, Karl, 55 Kleinwort Benson, 84 knowledge economy, 123 Kohl, Helmut, 10, 177, 213 Korea, 242, 265 Korean Peninsula, 44 Korean War, 4, 20, 122 Krauss, Ellis, 177 Krippner, Greta, 236 Kuczynski, Pedro Pablo, 255 Kuwait, 70 Kuznets, Simon, 133–136; gross national product and, 134; stages of economic growth and, 134–135 Kuznets curve, 134–135 labor productivity, 257–258. See also productivity labor share, 141–142 labor/trade unions, 10, 270; in France, 202, 208, 213; in Germany, 169; in Great Britain, 169–171; income distribution and, 137–138; manufacturing and, 137; in the Netherlands, 169; in Scandinavia, 169; in Spain, 211, 213; state-owned companies, privatization, Thatcher and, 190, 191–194, 214; state-owned companies and Thatcher and, 186–191; ungovernability and, 160; in West Germany, 137 Laffer, Arthur, 227–228 Laffer Curve, 227–228 Landy, Harry, 90–91, 92 Lange, Anders, 153, 154 late capitalism, 160, 267–268.


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Breakout Nations: In Pursuit of the Next Economic Miracles by Ruchir Sharma

3D printing, affirmative action, Albert Einstein, American energy revolution, anti-communist, Asian financial crisis, banking crisis, Berlin Wall, BRICs, British Empire, business climate, business cycle, business process, business process outsourcing, call centre, capital controls, Carmen Reinhart, central bank independence, centre right, cloud computing, collective bargaining, colonial rule, corporate governance, creative destruction, crony capitalism, deindustrialization, demographic dividend, Deng Xiaoping, eurozone crisis, Gini coefficient, global supply chain, housing crisis, income inequality, indoor plumbing, inflation targeting, informal economy, Kenneth Rogoff, knowledge economy, labor-force participation, land reform, M-Pesa, Mahatma Gandhi, Marc Andreessen, market bubble, mass immigration, megacity, Mexican peso crisis / tequila crisis, Nelson Mandela, new economy, oil shale / tar sands, oil shock, open economy, Peter Thiel, planetary scale, quantitative easing, reserve currency, Robert Gordon, Shenzhen was a fishing village, Silicon Valley, software is eating the world, sovereign wealth fund, The Great Moderation, Thomas L Friedman, trade liberalization, Watson beat the top human players on Jeopardy!, working-age population, zero-sum game

The dotcom sensation broke the bounds of the financial world and seized the popular imagination, attracting thrilled media hype around the world and enticing cubicle jockeys to become day traders. There was the dream of great riches, yes, but also a boundless optimism and faith in human progress, a sense that the innovations flowing out of Silicon Valley would soon reshape the world for the better. Tech CEOs became rock stars because they promised a life of rising productivity, falling prices, and high salaries for generating ideas in the hip office pods of the knowledge economy, or for trading tech stocks from a laptop in the living room. It was impossible in those days to get investors interested in anything that did not involve technology and the United States, so some of us started talking up emerging markets as “e-merging markets,” while analysts spent a lot of time searching for the new Silicon Valley, which they dutifully but often implausibly discovered hiding in loft offices everywhere from Prague to Kuala Lumpur.

More capital could also then flow to the productive parts of the global economy, and I would not be surprised if U.S. technology again becomes the mania of the coming decade—mirroring the nineteenth century, when the United States saw two railroad booms in the space of three decades. In the 1980s and 1990s, the United States cut way back on investment in roads and buildings—exactly the investments that were taking off in China—and moved to embrace its new role as the premier knowledge economy. The state of American roads is now seen as a national scandal, but much less attention is paid to the upside: spending on software and equipment more than doubled in the period between 1980 and 2000, unleashing a productivity boom that drove the strong U.S. recovery through the 1990s. U.S. strength in technology looks overwhelming in comparison with even the fastest-rising emerging markets, and in comparison with Japan and Taiwan, nations that also spend heavily on tech research and development but generate a lot less growth out of it.

To a degree that is unmatched outside small nations such as Finland, the U.S. economy is built to innovate: there are whole industries dedicated to refining the next wrinkle in innovation—the latest are open innovation (basically using open-source software systems on the Linux model) and light innovation (optimizing the use of cheap new software sources like the Amazon cloud for business). So American innovation is no accident. As Albert Einstein said, “Innovation is not the product of logical thought, although the result is tied to logical structure.” The United States is strong across the board in technology, but it’s really in the field of software—the ideas that drive the emerging knowledge economy—that the system produces its greatest advantages and generates the most wealth. While Apple employs fifty thousand people and has a market capitalization that has risen fivefold over the last five years, the Taiwan companies that make gadgets for Apple employ millions but have seen their stock prices stagnate for lack of pricing power. The hardware is easy to replicate, which in turn cuts profit margins, while the software is highly profitable so long as it continues to evolve.


Smart Cities, Digital Nations by Caspar Herzberg

Asian financial crisis, barriers to entry, business climate, business cycle, business process, carbon footprint, clean water, cloud computing, corporate social responsibility, Dean Kamen, demographic dividend, Edward Glaeser, Edward Snowden, hive mind, Internet of things, knowledge economy, Masdar, megacity, New Urbanism, packet switching, QR code, remote working, RFID, rising living standards, risk tolerance, Ronald Reagan, shareholder value, Silicon Valley, Silicon Valley startup, smart cities, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia, smart meter, social software, special economic zone, Stephen Hawking, telepresence, too big to fail, trade route, transcontinental railway, upwardly mobile, urban planning, urban sprawl, women in the workforce, working poor, X Prize

The question remained how many businesses would accept the overture, especially since the economic heart of the zone had been, until recently, a tidal basin where commerce extended barely beyond fishing. Incheon was a large, growing city, but it was not a budding international presence. When the 1997 Asian financial crisis hit, influential analysis described South Korea’s situation as akin to a nut in the nutcracker, competing as it did with a savvier technological power in Japan and far greater resources in China.3 Increasing the national profile as a knowledge economy was a direct response to this evaluation; additionally, the Incheon authorities embraced the primacy of airports as a central concept in their strategy. John Kasarda, director of the Center for Air Commerce at the University of North Carolina’s Kenan-Flagler Business School, neatly defined this idea when he coined the term “aerotropolis”; in his view, the airport (which he contends will only increase in importance in coming decades, as cities become more powerful than some of the nations containing them) should be a hub that connects and centralizes all city traffic.

. _____________________________________________ 1 “South Korea: Finding its place on the world stage,” McKinsey & Company, April 2010, http://www.mckinsey.com/global-themes/asia-pacific/south-korea-finding-its-place-on-the-world-stage. 2 Akamai’s State of the Internet report, Second Quarter 2014, https://www.akamai.com/us/en/about/news/press/2014-press/akamai-releases-second-quarter-2014-state-of-the-internet-report.jsp. 3 Alexey Volynets, “Case Study: Korea’s Transition Towards Knowledge Economy,” World Bank, 2016, http://go.worldbank.org/2KQGBF91M0. 4 Anthony Townsend, Smart Cities: Big Data, Civic Hackers and the Quest for a New Utopia (W.W. Norton, 2013), p. 28. 5 Microsoft Named Preferred Technology Partner in “City of the Future” Project, Microsoft press release, May 9, 2008, http://news.microsoft.com/2008/05/09/microsoft-named-preferred-technology-partner-in-city-of-the-future-project/#sm.0000sejqhlx73ddjydb1lilqjfiiy#7vXsTmeBmQGoO2ky.97. 6 Greg Lindsay, “Cisco’s Big Bet on New Songdo: Creating Cities From Scratch,” Fast Company, February 2010, https://www.fastcompany.com/1514547/ciscos-big-bet-new-songdo-creating-cities-scratch. 7 See YouTube: www.youtube.com/watch?


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The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention by William Rosen

"Robert Solow", Albert Einstein, All science is either physics or stamp collecting, barriers to entry, collective bargaining, computer age, Copley Medal, creative destruction, David Ricardo: comparative advantage, decarbonisation, delayed gratification, Fellow of the Royal Society, Flynn Effect, fudge factor, full employment, invisible hand, Isaac Newton, Islamic Golden Age, iterative process, James Hargreaves, James Watt: steam engine, John Harrison: Longitude, Joseph Schumpeter, Joseph-Marie Jacquard, knowledge economy, moral hazard, Network effects, Panopticon Jeremy Bentham, Paul Samuelson, Peace of Westphalia, Peter Singer: altruism, QWERTY keyboard, Ralph Waldo Emerson, rent-seeking, Ronald Coase, Simon Kuznets, spinning jenny, the scientific method, The Wealth of Nations by Adam Smith, Thomas Malthus, transaction costs, transcontinental railway, zero-sum game, éminence grise

One of those costs, in the early decades of the eighteenth century, was incurred due to the fact that an awful lot of the newest bits of useful knowledge were hard to compare, one with the other, because they described the same phenomenon using different words (and different symbols). As the metaphorical shelves of the knowledge market filled with innovations, buyers demanded that they be comparable, which led directly to standardization of everything from mathematical notation to temperature scales. In this way, the Industrial Enlightenment’s knowledge economy lowered the barriers to communication between the creators of theoretical models and masters of prescriptive knowledge, for which the classic example is Robert Hooke’s 1703 letter to Thomas Newcomen advising him to drive his piston by means of vacuum alone. The dominoes look something like this: A new enthusiasm for creating knowledge led to the public sharing of experimental methods and results; demand for those results built a network of communication channels among theoretical scientists; those channels eventually carried not just theoretical results but their real-world applications, which spread into the coffeehouses and inns where artisans could purchase access to the new knowledge.

This was one of the many areas that attracted the attention of the Austrian American economist Fritz Machlup, who, forty years ago, approached the question in a slightly different way: Is it possible to expand the inventive work force? Can labor be diverted into the business of invention? Can an educational or training system emphasize invention? Machlup—who first popularized the idea of a “knowledge economy”—spent decades collecting data on innovation in everything from advertising to typewriter manufacture—by one estimate, on nearly a third of the entire U.S. economy—and concluded with suggesting the counterintuitive possibility that higher rates of compensation actually lower the quality of labor. Machlup argued that the person who prefers to do something other than inventing and does so only under the seductive lure of more money is likely to be less gifted than one who doesn’t.

., Technology in Western Civilization. 17 His greatest contribution to metallurgical history Cyril Stanley Smith, “Metallurgy in the 17th and 18th Centuries,” in Kranzberg and Pursell, eds., Technology in Western Civilization. 18 After nearly ten years of secret experiments “Benjamin Huntsman” in Oxford Dictionary of National Biography. 19 His furnaces could be made Smith, “Metallurgy in the 17th and 18th Centuries,” in Kranzberg and Pursell, eds., Technology in Western Civilization. 20 He departed from the norm Joel Mokyr, The Gifts of Athena: Historical Origins of the Knowledge Economy (Princeton: Princeton University Press, 2002). 21 in 1750, when Britain consumed Pacey, Maze of Ingenuity. 22 “the father of the iron trade” The Times, editorial, July 29, 1856. 23 a relatively pure form of wrought iron From Dr. Joseph Gross’s description of Wood’s process in Puddling in the Iron Works of Merthyr Tydfil, quoted at http://www.henrycort.net. 24 “The puddlers were the artistocracy” Postan and Habakkuk, The Cambridge Economic History of Europe (Cambridge: Cambridge University Press, 1966). 25 “a peculiar method of preparing” R.


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The Job: The Future of Work in the Modern Era by Ellen Ruppel Shell

3D printing, affirmative action, Affordable Care Act / Obamacare, Airbnb, airport security, Albert Einstein, Amazon Mechanical Turk, basic income, Baxter: Rethink Robotics, big-box store, blue-collar work, Buckminster Fuller, call centre, Capital in the Twenty-First Century by Thomas Piketty, Clayton Christensen, cloud computing, collective bargaining, computer vision, corporate governance, corporate social responsibility, creative destruction, crowdsourcing, deskilling, disruptive innovation, Donald Trump, Downton Abbey, Elon Musk, Erik Brynjolfsson, factory automation, follow your passion, Frederick Winslow Taylor, future of work, game design, glass ceiling, hiring and firing, immigration reform, income inequality, industrial robot, invisible hand, Jeff Bezos, job automation, job satisfaction, John Markoff, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, Kickstarter, knowledge economy, knowledge worker, Kodak vs Instagram, labor-force participation, low skilled workers, Lyft, manufacturing employment, Marc Andreessen, Mark Zuckerberg, means of production, move fast and break things, move fast and break things, new economy, Norbert Wiener, obamacare, offshore financial centre, Paul Samuelson, precariat, Ralph Waldo Emerson, risk tolerance, Robert Gordon, Robert Shiller, Robert Shiller, Rodney Brooks, Ronald Reagan, Second Machine Age, self-driving car, shareholder value, sharing economy, Silicon Valley, Snapchat, Steve Jobs, The Chicago School, Thomas L Friedman, Thorstein Veblen, Tim Cook: Apple, Uber and Lyft, uber lyft, universal basic income, urban renewal, white picket fence, working poor, Y Combinator, young professional, zero-sum game

One glance at Gorelick’s résumé makes clear that this seeming prosperity was well earned: titles like “senior vice president,” “general manager,” and “principal consultant” all funnel into an Ivy League degree capped with an MBA from the University of Chicago. A veteran strategist, Gorelick had partnered with major financial institutions, airlines, pharmaceutical companies, global retailers, and start-ups large and small. Digitally savvy and forward thinking, he was by all appearances a winner—a member of the top 4 or 5 percent flying high in the knowledge economy. But that was then, just short of his fifty-seventh birthday. Just shy of his fifty-eighth, Gorelick was still proud of his three-point shot. But the rest of his life had come unhinged from his résumé. When we first met in person, he was driving a cab, manning a cash register at Whole Foods, and peddling neckties at Lord and Taylor. The take-home pay for these part-time gigs paled compared to his previous earnings, most recently as principal for global strategy and innovation at an international marketing firm.

Digital technology has made workers more productive than ever before, but over time this increase in productivity has not always led to a boost in wages or job quality. Nor has it resulted in more people attaining more challenging, higher-skilled jobs. In fact, here’s the stunner: overall, digital technology has led to a decline in the demand for the high-level skills that command a high-level wage. A decline in demand for skill? To many if not most of us, this statement sounds preposterous. We’ve heard so much about the knowledge economy and its nearly insatiable demand for technological and managerial acumen. Skills are the key to the twenty-first-century kingdom, right? Once again, it’s complicated. No one doubts that acquiring skills can help broaden an individual’s prospects. But in the aggregate, there are convincing signs that the demand for skills has cooled. Economist Paul Beaudry and his colleagues at the University of British Columbia and York University first reported this startling trend in 2013, though to surprisingly little fanfare.

The authors conclude: “A strong union movement is not simply sufficient for high levels of intergenerational mobility and middle-class membership, but it could be necessary. If that is the case, it will be difficult to meaningfully increase intergenerational mobility and rebuild the middle class without also rebuilding unions or some comparable worker based organizations.” The decline of labor unions and the ascendance of at-will employment arrangements neatly coincided with the rise in the knowledge economy, in which workers are expected to negotiate for individual advantage rather than to bargain collectively toward common goals. The IT sector in particular seemed to consider unions a special threat. In the 1970s, Intel cofounder Robert Noyce declared, “Remaining non-union is an essential for survival for most of our companies” and “a very high priority for management.” Twenty years later, Steve Jobs denounced unions as the “essential problem,” and venture capitalist and Netscape cofounder Marc Andreessen observed that “there may have been a time and a place for unions, but not sure I see it anymore.”


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Women & Power: A Manifesto by Mary Beard

Bernie Sanders, Boris Johnson, Donald Trump, feminist movement, glass ceiling, knowledge economy, Saturday Night Live, wikimedia commons

Whether that is as politicians, councillors, police commissioners, managers, CEOs, judges or whatever, it is still a clear minority – but there are more. (To give just one figure, around 4 per cent of UK MPs were women in the 1970s; around 30 per cent are now.) But my basic premise is that our mental, cultural template for a powerful person remains resolutely male. If we close our eyes and try to conjure up the image of a president or – to move into the knowledge economy – a professor, what most of us see is not a woman. And that is just as true even if you are a woman professor: the cultural stereotype is so strong that, at the level of those close-your-eyes fantasies, it is still hard for me to imagine me, or someone like me, in my role. I put the phrase ‘cartoon professor’ into Google UK Images: ‘cartoon professor’ to make sure that I was targeting the imaginary ones, the cultural template, not the real ones; and ‘UK’ to exclude the slightly different definition of ‘professor’ in the USA.


Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages by Carlota Pérez

agricultural Revolution, Big bang: deregulation of the City of London, Bob Noyce, Bretton Woods, business cycle, capital controls, commoditize, Corn Laws, creative destruction, David Ricardo: comparative advantage, deindustrialization, distributed generation, financial deregulation, financial innovation, Financial Instability Hypothesis, financial intermediation, full employment, Hyman Minsky, informal economy, joint-stock company, Joseph Schumpeter, knowledge economy, late capitalism, market fundamentalism, new economy, nuclear winter, offshore financial centre, post-industrial society, profit motive, railway mania, Robert Shiller, Robert Shiller, Sand Hill Road, Silicon Valley, Simon Kuznets, South Sea Bubble, Thomas Kuhn: the structure of scientific revolutions, Thorstein Veblen, trade route, tulip mania, Upton Sinclair, Washington Consensus

The post-Second World War golden age was facilitated as much by the Bretton Woods agreements as by the development of ample personal banking services, widespread consumer and home buying credit (both made less risky by unemployment insurance); urban development financial schemes, specialized banking and other arrangements for the smooth functioning of the fast growing real estate and insurance sectors; government loans; and so on. It is clear that the burgeoning knowledge economy will require a very wide range of new instruments and even the overturning of some ‘eternal truths’ about the tangible nature of assets. 215. Kindleberger (1984) p. 79. Synergy: Supporting the Expansion of the Paradigm 133 C. A Shared and Embedded Paradigm: Flourishing Synergy and Convergent Expansion What makes the Synergy prosperity an era of good feeling is its tendency to encompass greater and greater parts of the economy and larger and larger parts of society in the benefits of growth.216 After a period of acute polarization on several fronts, when prosperity was extremely lopsided, the system searches for coherence through the widespread application of the now established paradigm, as the logic of both production and consumption.

They include construction, transport and trade accompanying the particular nature of the expansion, as well as other activities that complete the new production and consumption spectrum. In the fourth surge, these included the flourishing of a service economy; in the case of the current surge, they will probably involve many activities related to intermediation in the information world and to production in the knowledge economy. So the range of sectors that support growth and need financing in this phase encompasses: ● the core industries of the paradigm, which are still growing, advancing and expanding; 216. Tylecote (1985 and 1992) was the first to discuss the importance of income distribution as a determining element of the possibility of a ‘long-wave’ prosperity. 134 ● ● ● Technological Revolutions and Financial Capital the infrastructure, increasing its coverage and services; the whole of the old economy being modernized and rejuvenated; and a group of new branches of industry and services that are supplementary to the others and complete the fabric of the economy within the logic of that paradigm.


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The Great Reset: How the Post-Crash Economy Will Change the Way We Live and Work by Richard Florida

banking crisis, big-box store, blue-collar work, business cycle, car-free, carbon footprint, collapse of Lehman Brothers, congestion charging, creative destruction, deskilling, edge city, Edward Glaeser, falling living standards, financial innovation, Ford paid five dollars a day, high net worth, Home mortgage interest deduction, housing crisis, if you build it, they will come, income inequality, indoor plumbing, interchangeable parts, invention of the telephone, Jane Jacobs, Joseph Schumpeter, knowledge economy, low skilled workers, manufacturing employment, McMansion, Menlo Park, Nate Silver, New Economic Geography, new economy, New Urbanism, oil shock, Own Your Own Home, pattern recognition, peak oil, Ponzi scheme, post-industrial society, postindustrial economy, reserve currency, Richard Florida, Robert Shiller, Robert Shiller, secular stagnation, Silicon Valley, Silicon Valley startup, social intelligence, sovereign wealth fund, starchitect, the built environment, The Wealth of Nations by Adam Smith, Thomas L Friedman, total factor productivity, urban decay, urban planning, urban renewal, white flight, young professional, Zipcar

After making auto production cheaper and more efficient, Henry Ford realized that a bigger market for his assembly-line cars was needed, so he boosted workers’ wages and introduced the “five-dollar day.” But true Fordism, the combination of mass production and mass consumption, didn’t emerge as a full-blown economic and social model until mass suburbanization—the spatial fix of post–World War II America. Our own collapse, in the early years of the twenty-first century, is the crisis of the latest economic revolution—the rise of an idea-driven knowledge economy that runs more on brains than brawn. It reflects the limits of the suburban model of development to channel the full innovation and productive capabilities of the creative economy. The places that thrive today are those with the highest velocity of ideas, the highest density of talented and creative people, and the highest rate of metabolism. “Velocity” and “density” are not words that many people use when describing suburbia.

Also see Jacob Schmookler, Invention and Economic Growth (Cambridge, Mass.: Harvard University Press, 1966). 3. My discussion of technological innovation during the First Reset is based on the following key sources: Joel Mokyr, The Lever of Riches: Technological Creativity and Economic Progress (New York: Oxford University Press, 1992), and Mokyr, Gifts of Athena: Historical Origins of the Knowledge Economy (Prince ton, N.J.: Prince ton University Press, 2004). See also David Landes, The Wealth and Poverty of Nations: Why Some Nations Are So Rich and Others Are So Poor (New York: W. W. Norton, 1999). 4. David Hounshell, From American System to Mass Production, 1880–1932: The Development of Manufacturing Technology in the United States (Baltimore: Johns Hopkins University Press, 1985). 5. Joel Mokyr, “The Second Industrial Revolution, 1870–1914,” in Valerio Castronovo, ed., Storia dell’economia mondiale (Rome: Laterza Publishing, 1999), 219–245. 6.


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Sleeping Giant: How the New Working Class Will Transform America by Tamara Draut

affirmative action, Affordable Care Act / Obamacare, always be closing, American ideology, battle of ideas, big-box store, blue-collar work, collective bargaining, creative destruction, David Brooks, declining real wages, deindustrialization, desegregation, Detroit bankruptcy, Donald Trump, Edward Glaeser, ending welfare as we know it, Ferguson, Missouri, financial deregulation, full employment, immigration reform, income inequality, invisible hand, job satisfaction, knowledge economy, knowledge worker, low skilled workers, mass incarceration, minimum wage unemployment, mortgage tax deduction, new economy, obamacare, occupational segregation, payday loans, pink-collar, plutocrats, Plutocrats, Powell Memorandum, profit motive, race to the bottom, Ralph Nader, rent-seeking, rising living standards, Ronald Reagan, shared worldview, The Bell Curve by Richard Herrnstein and Charles Murray, The Wealth of Nations by Adam Smith, trickle-down economics, union organizing, upwardly mobile, War on Poverty, white flight, women in the workforce, young professional

And like the small army that cared for my dad, the wages range from poverty-level to solidly middle class.1 The need for legions of health-care workers, still mostly women but with a modest and growing percentage of men, will continue to swell as the baby boomers grow old and frail. In fact, it will be the low-paid health-service jobs that will increase the most as more baby boomers retire. This bargain-basement economy will grow the most for the foreseeable future—not the much-touted knowledge economy. Topping the list of occupations that will add the most jobs to our economy are retail salespeople, child-care workers, food preparers and cooks, janitors, bookkeepers, maids, and truck drivers. Of the thirty occupations that will add the most jobs in the coming decade, half pay less than $30,000 a year.2 This is the heart of America’s working class today. And it will be even more so tomorrow.

Many of these jobs exist at the bottom of a long line of contracts and subcontracts, or are staffed by temp agencies, or are part of a franchise system—all forms of hiring that no longer align with existing labor laws written almost a century ago, making them vulnerable to wage theft and unsafe working conditions. These jobs are the giant amoeba of the American labor market, swallowing and engulfing more and more of our workers in a huge blob of low-paying work. This reality is not reflected in TED talks, swanky ideas summits, or other intellectually elite venues where rumination about the knowledge economy, entrepreneurship, and creative destruction are de rigueur. But make no mistake, it is the economy of our present and our future. Table 1. The Largest Jobs in the Bargain-Basement Economy (2012) Source: U.S. Department of Labor, U.S. Bureau of Labor Statistics, Table 1.4, Occupations with the Most Job Growth, 2012 and Projected 2022, at http://www.bls.gov/emp/ep_table_104.htm and Occupational Outlook Handbook at http://www.bls.gov/ooh/.


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The Genius Within: Unlocking Your Brain's Potential by David Adam

Albert Einstein, business intelligence, cognitive bias, Flynn Effect, job automation, John Conway, knowledge economy, lateral thinking, Mark Zuckerberg, meta analysis, meta-analysis, placebo effect, randomized controlled trial, Skype, Stephen Hawking, The Bell Curve by Richard Herrnstein and Charles Murray

But like ‘normal’, what is considered as ‘wrong’ constantly shifts as technology and expectations rise. The ground becomes even less solid when the human improvements to be introduced – by both therapy and enhancement – are cognitive as well as physical, because ‘normal’ is much harder to define and because the likely benefits could have more day-to-day impact. As politicians are constantly telling us, we live in a knowledge economy. Knowledge is power. And a little knowledge remains a dangerous thing, especially if a political, military or economic rival has a little more. Or if they are just a little quicker on the buzzer. In autumn 2012, I got an email out of the blue inviting me to appear on a special Christmas series of the television quiz show University Challenge for graduates. I am still not sure how they chose me, there seemed to be a suspiciously high number of journalists, but I was careful to reply and say yes before they realized their mistake and changed their mind.

Clearly there were always some high achievers who caught the eye (and built bridges, cracked trigonometry, predicted celestial mechanics, wrote the US constitution, invented the bicycle) but were our great-grandparents and people further back generally, well, just a bit thick? Intelligence, recall, is using what you’ve got to do what you want. Or to get what you need. And 150 years ago, before remote controls and tube lines and having to go to school and having to work in the knowledge economy and having other people want to know what you know and how much, people wanted and needed different things from their brains. James Flynn has looked at all the records he can find from as many places as kept them and suggests that, prior to industrialization, humans focused on concrete objects and as modernity shaped their lives, so their brains learned to grapple with abstract concepts. That type of abstract thinking, the memory and visualization and spatial awareness and the ability to make connections beyond the surface, are the bits of intelligence that an IQ test tends to pick up.


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Brilliant, Crazy, Cocky: How the Top 1% of Entrepreneurs Profit From Global Chaos by Sarah Lacy

Asian financial crisis, barriers to entry, BRICs, clean water, cleantech, cloud computing, Deng Xiaoping, Donald Trump, Elon Musk, fear of failure, Firefox, income per capita, intangible asset, Jeff Bezos, knowledge economy, knowledge worker, M-Pesa, Mahatma Gandhi, Marc Andreessen, Mark Zuckerberg, McMansion, megacity, Network effects, paypal mafia, QWERTY keyboard, risk tolerance, Skype, social web, Steve Jobs, Tony Hsieh, urban planning, web application, women in the workforce, working-age population, zero-sum game

It seemed too good to be true: high-quality workers who were happy to work long hours for a fraction of the cost. And thanks to that vast buildout of communications, computers, and the Internet, people argued that a global y flung, outsourced company could function as one tight organization. The United States was lauded as something even greater than a place that could make things. It was becoming a so-cal ed knowledge economy. The United States was the place that would dream up the big ideas, like iPods, smartphones, and eBook readers, and send them off for someone else to actual y build. Business professors like David B. Yoffie of Harvard Business School argued that we weren’t outsourcing anything of value, as the United States was becoming more of a high-margin service economy. The high-value intel ectual work—whether design, strategy, or engineering—was al stil being done in the United States.

See Muslims Israel: entrepreneurship in Erel Margalit story Gilad Japhet story innovative spirit military ethos strengths versus weaknesses venture capital boom Japhet, Gilad Jardim, Francisco Jerusalem Venture Partners Jobs, Steve John F. Kennedy School, Columbia Justdial Kagabo, Jean de Dieu Kagame, Paul Kaskus Kauffman Foundation KFC Khosla, Vinod Kidder, Tracy Kingstone, Peter R. Kinzer, Stephen Klein, Saul Knowledge economy: India as U.S. as Koni restaurants Koogle, Tim Krugman, Paul Ku, Victor Lal, Lakhan Last.fm Late Show with David Letterman, The Levchin, Max Levensohn, Pascal Levensohn Venture Partners Li, Robin Li, Song Limman, Selina LinkedIn Li Peng Luce, Edward Lula. See Silva, Luiz Inácio Lula da Ma, Jack Ma Huateng Mail.ru Group Mamuaya, Rama Mani, VSS Mao Zedong Margalit, Erel McDonald’s, in Brazil Mehrotra, Rajiv Meiloo Mendes, Nivea mercadoLibre MetaCafe Microsoft: as competitor as innovator in Israel Miranda, Marcelo MIT Mitra, Sugata MixIt Mobile World Congress Monster.com Montgomery Securities Moore‘s Law M-Pesa Murambi Genocide Memorial Murangira, Emmanuel Murthy, Narayana Musk, Elon Muslims: in India in Indonesia in Pakistan MyHeritage MySQL Napster NASDAQ: Infosys IPO Israeli participation Latin America listing 1990s boom Silicon Val ey and volatility of Naspers National Venture Capital Association Nayak, Sanjay Negri, Heraldo Negroponte, Nicholas Nehru, Jawaharlal Nelson, Wil ie New Yorker, The New York Stock Exchange New York Times Magazine Nexus Ventures NIT Noff, Ayelet Nokia Nova, Dan Obama, Barack Olympics (2016) Omidyar, Pierre O’Neil , Jim One Laptop Per Child Oracle Oriental Fashion Driving School Ourivio, Eduardo Outsourcing: to China to India in Israel in U.S.


pages: 290 words: 76,216

What's Wrong with Economics? by Robert Skidelsky

"Robert Solow", additive manufacturing, agricultural Revolution, Black Swan, Bretton Woods, business cycle, Cass Sunstein, central bank independence, cognitive bias, conceptual framework, Corn Laws, corporate social responsibility, correlation does not imply causation, creative destruction, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, disruptive innovation, Donald Trump, full employment, George Akerlof, George Santayana, global supply chain, global village, Gunnar Myrdal, happiness index / gross national happiness, hindsight bias, Hyman Minsky, income inequality, index fund, inflation targeting, information asymmetry, Internet Archive, invisible hand, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, Kenneth Arrow, knowledge economy, labour market flexibility, loss aversion, Mark Zuckerberg, market clearing, market friction, market fundamentalism, Martin Wolf, means of production, moral hazard, paradox of thrift, Pareto efficiency, Paul Samuelson, Philip Mirowski, precariat, price anchoring, principal–agent problem, rent-seeking, Richard Thaler, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, shareholder value, Silicon Valley, Simon Kuznets, survivorship bias, technoutopianism, The Chicago School, The Market for Lemons, The Nature of the Firm, the scientific method, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, Thomas Malthus, Thorstein Veblen, transaction costs, transfer pricing, Vilfredo Pareto, Washington Consensus, Wolfgang Streeck, zero-sum game

Big data and computer technology have lowered information costs so much that billions of individuals can now transact with each other directly ‘on line’ without the need for institutional intermediaries. Institutions recede before the invasion of social media and on-line shopping. ‘All that is solid melts into air’, as Marx put it. Radical sociologists, like the Brazilian Roberto Unger, believe that the ‘knowledge economy’ is bound to generate a decentralised world of small firms wired into global networks.10 However, the new individualist perspective is premature. The institutions thrown up by digital technology are less visible than their predecessors, their activities more ‘virtual’, but this does not mean that they do not exist, or that they are not even larger and more powerful. The highly visible multinational corporations which bestrode the world like colossi in the 1970s, and whose existence and functioning the institutional economists tried to explain, may no longer exist, but this does not mean that the ‘democracy of the market’ has taken their place.

.), Cambridge, MA: Harvard University Press. Simon, Herbert (1976). Administrative Behavior: A Study of Decision-making Processes in Administrative Organization, New York: Free Press. Simon, Herbert (1991). ‘Organizations and Markets’, Journal of Economic Perspectives, Vol. 5 (2): 25–44. Standing, Guy (2014 [2011]). The Precariat: The New Dangerous Class, London: Bloomsbury Academic. Unger, Roberto Mangabeira (2019). The Knowledge Economy, London: Verso. Chapter 9 Cartwright, Nancy (1999). The Dappled World: A Study of the Boundaries of Science, Cambridge: Cambridge University Press. Cherrier, Beatrice (2011). ‘The Lucky Consistency of Milton Friedman’s Science and Politics, 1933–1963’, in R. Van Horn, P. Mirowski and T. Stapleford (eds.), Building Chicago Economics: New Perspectives on the History of America’s Most Powerful Economics Program (Historical Perspectives on Modern Economics), Cambridge: Cambridge University Press.


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Masters of Management: How the Business Gurus and Their Ideas Have Changed the World—for Better and for Worse by Adrian Wooldridge

affirmative action, barriers to entry, Black Swan, blood diamonds, borderless world, business climate, business cycle, business intelligence, business process, carbon footprint, Cass Sunstein, Clayton Christensen, cloud computing, collaborative consumption, collapse of Lehman Brothers, collateralized debt obligation, commoditize, corporate governance, corporate social responsibility, creative destruction, credit crunch, crowdsourcing, David Brooks, David Ricardo: comparative advantage, disintermediation, disruptive innovation, don't be evil, Donald Trump, Edward Glaeser, Exxon Valdez, financial deregulation, Frederick Winslow Taylor, future of work, George Gilder, global supply chain, industrial cluster, intangible asset, job satisfaction, job-hopping, joint-stock company, Joseph Schumpeter, Just-in-time delivery, Kickstarter, knowledge economy, knowledge worker, lake wobegon effect, Long Term Capital Management, low skilled workers, Mark Zuckerberg, McMansion, means of production, Menlo Park, mobile money, Naomi Klein, Netflix Prize, Network effects, new economy, Nick Leeson, Norman Macrae, patent troll, Ponzi scheme, popular capitalism, post-industrial society, profit motive, purchasing power parity, Ralph Nader, recommendation engine, Richard Florida, Richard Thaler, risk tolerance, Ronald Reagan, science of happiness, shareholder value, Silicon Valley, Silicon Valley startup, Skype, Social Responsibility of Business Is to Increase Its Profits, Steve Jobs, Steven Levy, supply-chain management, technoutopianism, The Wealth of Nations by Adam Smith, Thomas Davenport, Tony Hsieh, too big to fail, wealth creators, women in the workforce, young professional, Zipcar

The tragedy for GM was that it rejected Drucker’s advice about using teams in the 1940s—only to have the same lesson rammed down its throat by the Japanese in the 1970s. Drucker’s enthusiasm for empowerment was reinforced by his belief that the old industrial proletariat was being replaced by knowledge workers. He believed that the advanced world was moving from “an economy of goods” to “a knowledge economy,” and that management was changing as a result: managers needed to learn how to engage the minds, rather than simply control the hands, of their workers. This softer approach was a direct challenge to Taylor’s stopwatch theories and their fans in business. But the idea of a “knowledge worker” (a term that Drucker coined in 1959) also posed questions for politicians. It suggested that rather than defending dying industries against cheaper, less “knowledgeable” workers abroad, governments should concentrate on improving the country’s stock of knowledge, but otherwise keep well out of the way.

Eighty-five percent of all the high-growth businesses created in the United States in the past twenty-five years were established by people with college degrees, engineering being the most important. University research departments have helped to drive innovation in everything from design to entertainment. The second is openness to outsiders. Émigrés have always been more entrepreneurial than their stick-in-the-mud cousins: the three most entrepreneurial “countries” in modern history have been the ones inhabited by the Jewish, Chinese, and Indian diasporas. In today’s knowledge economy, educated émigrés are at the cutting edge of innovation. They create more firms than other people, as Silicon Valley demonstrates; circulate ideas, money, and skills; fill skills gaps; and mix and match knowledge from different parts of the world. A third thing that policymakers need to do is free their mind of one of Schumpeter’s most bewitching phrases: creative destruction. Creative destruction implies that the destructive part of entrepreneurship is just as weighty as the creative part.

This disparity is likely to intensify as countries simultaneously woo educated workers and build up barriers to less-educated immigrants. Most developed countries are already struggling to find enough doctors and teachers, and are wondering how they will manage when the baby-boomer generation retires. Developing countries, for their part, realize that they will not be able to plug into the global knowledge economy unless they give their people the freedom to move around. A powerful array of interests, from multinationals to city politicians, supports the idea of a global market for the best people. Countries cut themselves off from it at their peril—particularly as hunger for talent is no longer confined to a handful of elite companies. Everybody Is Doing It There is nothing new about companies wanting to secure the best talent.


pages: 742 words: 137,937

The Future of the Professions: How Technology Will Transform the Work of Human Experts by Richard Susskind, Daniel Susskind

23andMe, 3D printing, additive manufacturing, AI winter, Albert Einstein, Amazon Mechanical Turk, Amazon Web Services, Andrew Keen, Atul Gawande, Automated Insights, autonomous vehicles, Big bang: deregulation of the City of London, big data - Walmart - Pop Tarts, Bill Joy: nanobots, business process, business process outsourcing, Cass Sunstein, Checklist Manifesto, Clapham omnibus, Clayton Christensen, clean water, cloud computing, commoditize, computer age, Computer Numeric Control, computer vision, conceptual framework, corporate governance, creative destruction, crowdsourcing, Daniel Kahneman / Amos Tversky, death of newspapers, disintermediation, Douglas Hofstadter, en.wikipedia.org, Erik Brynjolfsson, Filter Bubble, full employment, future of work, Google Glasses, Google X / Alphabet X, Hacker Ethic, industrial robot, informal economy, information retrieval, interchangeable parts, Internet of things, Isaac Newton, James Hargreaves, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Joseph Schumpeter, Khan Academy, knowledge economy, lifelogging, lump of labour, Marshall McLuhan, Metcalfe’s law, Narrative Science, natural language processing, Network effects, optical character recognition, Paul Samuelson, personalized medicine, pre–internet, Ray Kurzweil, Richard Feynman, Second Machine Age, self-driving car, semantic web, Shoshana Zuboff, Skype, social web, speech recognition, spinning jenny, strong AI, supply-chain management, telepresence, The Future of Employment, the market place, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, transaction costs, Turing test, Watson beat the top human players on Jeopardy!, WikiLeaks, young professional

The acquisition of knowledge through education and training has always been a priority, and professionals distinguish themselves by being more knowledgeable than their colleagues. However, when professionals are told—by academics and consultants, for example—that they are in the ‘knowledge business’, somehow this terminology does not resonate. Similarly, when professionals are informed that they are central to the so-called ‘knowledge economy’, they are rarely moved. A simple distinction is also often ignored in thinking about the ‘knowledge economy’—between industries, on the one hand, that have come to depend deeply on knowledge and those, on the other, whose very purpose is to provide knowledge itself. In the former camp, for instance, fall the manufacturing and retail sectors, whose operating models have been enhanced through the development and application of innovative ideas, fresh thinking, new working practices, imaginative use of technology, and more systematic management.

It does not matter that liberating expertise is less profitable, the argument goes, because people are not always motivated by financial gain. Very often they are driven some by other, non-financial motivation—they want to make better legal guidance and medical advice available because, for example, it is intrinsically good to do so. Yochai Benkler explores this phenomenon in detail in his book The Penguin and the Leviathan. And he is infused with optimism: For the commons has finally come into its own. Because in today’s knowledge economy, the most valuable resources—information and knowledge—are themselves a public good, and the best way to develop and maximise this good is through millions of networked people pooling that knowledge and working together to create new products, ideas, and solutions.39 And again: Once you open up the possibility that people are not only using the Web as a platform to produce their own individual content, but also to pool their efforts, knowledge and resources without expecting any sort of payment or compensation, the possibilities for what they can create are astounding.40 This evidence goes some way to addressing the ‘free-rider’ problem.


pages: 314 words: 94,600

Business Metadata: Capturing Enterprise Knowledge by William H. Inmon, Bonnie K. O'Neil, Lowell Fryman

affirmative action, bioinformatics, business cycle, business intelligence, business process, call centre, carbon-based life, continuous integration, corporate governance, create, read, update, delete, database schema, en.wikipedia.org, informal economy, knowledge economy, knowledge worker, semantic web, The Wisdom of Crowds, web application

However, since the late twentieth century—additional technology has been applied to this task, such as knowledge bases, expert systems, and knowledge repositories. Knowledge management programs attempt to manage the process of creation or identification, accumulation, and application of knowledge or intellectual capital across an organization. Knowledge management, therefore, attempts to bring under one set of practices various strands of thought and practice relating to: ✦ intellectual capital and the knowledge worker in the knowledge economy; ✦ the idea of the learning organization; ✦ various enabling organizational practices such as Communities of Practice and corporate Yellow Pages directories for accessing key personnel and expertise; ✦ various enabling technologies such as knowledge bases and expert systems, help desks, corporate intranets and extranets, Content Management, wikis, and Document Management. While knowledge management programs are closely related to organizational learning initiatives, knowledge management may be distinguished from organizational learning by its greater focus on the management of specific knowledge assets and its development and cultivation of the channels through which knowledge flows. 15.3 The Intersection of Business Metadata and Knowledge Management 261 The emergence of knowledge management has generated new organizational roles and responsibilities, an early example of which was the chief knowledge officer.

Business metadata, therefore, can support knowledge management by ✦ Facilitating knowledge capture through technologies like wikis or collaboration/groupware (Chapter 6) ✦ Facilitating knowledge dissemination by using technologies that allow the information to be accessed when and where it is most likely to be needed (Chapter 8) ✦ Providing for organization of the metadata by categorization schemes, controlled vocabularies, taxonomies, and ontology so that information can be easily found. 15.7 Knowledge Management and Social Issues 15.7 269 Knowledge Management and Social Issues 15.7.1 Graying of the Workforce In 2006, approximately 75 million people born between 1946 and 1964, turned 60 years old (see Segel, 2006). As noted at the beginning of this chapter, the main type of worker in the knowledge economy is the knowledge worker. Obviously, then, if a large percentage of the workforce retires at once, the result will be an incredible brain drain. This is precisely what is about to occur as the “baby-boomer” generation hits retirement age. K.C. Jones, quoting IBM, describes the ramifications of this event as follows: “The aging population will be one of the major social and business issues of the 21st Century.”


pages: 83 words: 26,097

Payoff: The Hidden Logic That Shapes Our Motivations by Dan Ariely

Affordable Care Act / Obamacare, always be closing, David Brooks, en.wikipedia.org, IKEA effect, knowledge economy, knowledge worker, science of happiness, Snapchat, The Wealth of Nations by Adam Smith

At the same time, as our research has shown, getting people to care deeply about their jobs, by adding meaning, personal investment, and connection, can create substantial benefits for both employees and employers. Work quality, morale, and productivity all improve. While both perspectives contain important truths, I believe that in an increasingly knowledge-based economy, it’s becoming increasingly important to design organizations along Marx’s point of view. In the knowledge economy, the workplace relies heavily on trust, engagement, and goodwill—and as the autonomy of each person in the organization increases, so does the importance of making everyone feel deeply connected to the enterprise. Reflecting on my relationship with Duke University, I think of myself as someone who benefits from a win-win relationship. My work as a university professor and researcher is my job, but it is also my hobby and, to a large degree, my identity and my life.


The Data Revolution: Big Data, Open Data, Data Infrastructures and Their Consequences by Rob Kitchin

Bayesian statistics, business intelligence, business process, cellular automata, Celtic Tiger, cloud computing, collateralized debt obligation, conceptual framework, congestion charging, corporate governance, correlation does not imply causation, crowdsourcing, discrete time, disruptive innovation, George Gilder, Google Earth, Infrastructure as a Service, Internet Archive, Internet of things, invisible hand, knowledge economy, late capitalism, lifelogging, linked data, longitudinal study, Masdar, means of production, Nate Silver, natural language processing, openstreetmap, pattern recognition, platform as a service, recommendation engine, RFID, semantic web, sentiment analysis, slashdot, smart cities, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia, smart grid, smart meter, software as a service, statistical model, supply-chain management, the scientific method, The Signal and the Noise by Nate Silver, transaction costs

These alternative interests can often become aligned in paradoxical ways, though they may have quite different agendas, for example the support of big business for the open data movement with respect to public data (see Chapter 3). In other words, data are manifested and situated within complex and contested political economies and, at the same time, they are used to shape such debates and regimes. Moreover, data constitute an economic resource, one that is a key component of the next phase of the knowledge economy, reshaping the mode of production to one that it is data-driven (see Chapter 7). Since the late 1980s, scholars such as Castells (1988, 1996) have argued that the latest cycle of capitalism is underpinned by the production of knowledge that creates new products and forms of labour, facilitates economic restructuring, and enhances productivity, competitiveness, efficiencies, sustainability and capital accumulation.

., the European Union [EU] and the United Nations Development Programme [UNDP]) have followed suit, making thousands of previously restricted datasets open in nature for non-commercial and commercial use (see DataRemixed 2013). Such a shift in position has been facilitated by influential international and national lobby groups such as the Open Knowledge Foundation and the Sunlight Foundation, accompanied by the lobbying of knowledge-economy industry groups and companies, as well senior civil servants convinced by the arguments used, and dozens of local groups seeking to leverage municipal data. While the arguments of the open data movement are presented in a commonsensical manner, using tropes such as transparency, accountability, participation, innovation and economic growth, the rapid opening up of government and scientific data has not been universally welcomed.


pages: 372 words: 92,477

The Fourth Revolution: The Global Race to Reinvent the State by John Micklethwait, Adrian Wooldridge

Admiral Zheng, affirmative action, Affordable Care Act / Obamacare, Asian financial crisis, assortative mating, banking crisis, barriers to entry, battle of ideas, Berlin Wall, Bernie Madoff, Boris Johnson, Bretton Woods, British Empire, cashless society, central bank independence, Chelsea Manning, circulation of elites, Clayton Christensen, Corn Laws, corporate governance, credit crunch, crony capitalism, Deng Xiaoping, Detroit bankruptcy, disintermediation, Edward Snowden, Etonian, failed state, Francis Fukuyama: the end of history, full employment, Gunnar Myrdal, income inequality, Khan Academy, Kickstarter, knowledge economy, Kodak vs Instagram, labor-force participation, laissez-faire capitalism, land reform, liberal capitalism, Martin Wolf, means of production, minimum wage unemployment, mittelstand, mobile money, Mont Pelerin Society, Nelson Mandela, night-watchman state, Norman Macrae, obamacare, oil shale / tar sands, old age dependency ratio, open economy, Parag Khanna, Peace of Westphalia, pension reform, pensions crisis, personalized medicine, Peter Thiel, plutocrats, Plutocrats, popular capitalism, profit maximization, rent control, rent-seeking, ride hailing / ride sharing, road to serfdom, Ronald Coase, Ronald Reagan, school choice, school vouchers, Silicon Valley, Skype, special economic zone, too big to fail, total factor productivity, War on Poverty, Washington Consensus, Winter of Discontent, working-age population, zero-sum game

“Never mind what the people think.” Lee has always made it clear that Singapore is open for business: There are few places where it is easier for a big multinational to set up shop, where tariff barriers are lower, and where taxes are more manageable. But at the same time the state guides the economy. It chivies local businesses up the “value chain”—betting first on manufacturing, then on services, and now on the knowledge economy. It also owns shares in the island’s biggest companies, such as Singapore Airlines and Singapore Telecommunications. Lee’s bossiness is even more noticeable in politics. To begin with, his authoritarianism was rather unsubtle: Suspected communists were locked up and elections rigged. In every election from 1968 to 1984 his People’s Action Party won all the seats. Now the control is subtler: There are curbs on the press, but all within the legal framework of parliamentary democracy.

The proportion of the world’s population that lives in them has grown from 3 percent in 1800 to 14 percent in 1900 to more than 50 percent today. It could reach 75 percent in 2050: In the developing world more than one million people move to cities every five days. Some cities are veritable behemoths: Chongqing, where Bo Xilai had his power base, sits at the heart of a region of thirty million people, six times the population of Denmark and about the same as the population of Canada. Cities are also the locus of the knowledge-economy: Parag Khanna of the New America Foundation, a think tank, calculates that forty city-regions produce two-thirds of the world’s economic output and an even higher share of its innovations. Gerald Carlino of the Federal Reserve Bank of Philadelphia notes that the denser the city, the more inventive: The number of patents per head rises by an average of 20 percent to 30 percent for each doubling of the number of employed people per square kilometer.


The End of Accounting and the Path Forward for Investors and Managers (Wiley Finance) by Feng Gu

active measures, Affordable Care Act / Obamacare, barriers to entry, business cycle, business process, buy and hold, Claude Shannon: information theory, Clayton Christensen, commoditize, conceptual framework, corporate governance, creative destruction, Daniel Kahneman / Amos Tversky, discounted cash flows, disruptive innovation, diversified portfolio, double entry bookkeeping, Exxon Valdez, financial innovation, fixed income, hydraulic fracturing, index fund, information asymmetry, intangible asset, inventory management, Joseph Schumpeter, Kenneth Arrow, knowledge economy, moral hazard, new economy, obamacare, quantitative easing, quantitative trading / quantitative finance, QWERTY keyboard, race to the bottom, risk/return, Robert Shiller, Robert Shiller, shareholder value, Steve Jobs, The Great Moderation, value at risk

The patents of Apple and Pfizer, the brands of Coca-Cola and Amazon, the highly efficient business processes (organizational capital) of Walmart and Southwest Airlines drove these companies’ success, rather than their machines, physical premises, or inventory. The increasing dominance of intangibles among corporate assets is widely recognized, with its consequences having become known as the “knowledge economy,” except, that is, by accountants, who strangely persist in ignoring the intangibles insurgence. How ironic that physical and financial investments, unable to create substantial value by themselves, are fully recognized as assets on corporate balance sheets—think about the “contribution” of inventory or short-term investments to the growth prospects of Pfizer—whereas investments in internally generated intangibles, such as patents, brands, or knowhow—powerful value creators—are immediately expensed; that is, treated in the income statement as regular expenses (salaries, rent) without future benefits.

See Financial information backward-looking information 52 company-related information sources 44 competition/litigation concerns 205–206 contribution 44 disagreement 63 quantification 63–65 importance 42 increase, requirement 87–88 intermediaries 62 manager cooperation 204–205 problems 84–86 proposed information, elicitation process 199–200 regulatory burden, lightening 206–208 253 SEC role 203 sources 68–69 alternative 70 ranking 30 theory (communication theory) 42 timelines, issue 43 uniformity 169 usefulness, measurement 30 uselessness 32 vagueness 63 Infringement 123 In-line products box 169–170 Innovation 166, 168 disruption 123 financial innovations 71 investment 164–165 revenues 176 In-process-R&D (IPRD) 96 balance sheet value 97 Insurance company operations 154f operations, risk 158 Intangible assets accounting problems 83–84 relevance, loss 88–90 rules, change (demand) 90 treatment 77–78 acquisition 85–86 amortization 216 asset treatment 214–217 capitalization 216 conspiracy of silence, application 86 disclosure, improvement 217–219 economic role, increase 37 emergence 37–38 increase 81–83 information increase, requirement 87–88 problems 84–86 investment, Google increase 85 nontradability 87–88 revolution 82f treatment, problem 78 uniqueness 87–88 valuation 215 254 Intangible capital increase 83 U.S. private sector investment 82f Intangible investments, expensing 216 Intellectual assets, economic role (increase) 37 Intellectual capital reports 113 Internal controls, gross inadequacies 123–124 International Financial Reporting Standard (IFRS) 217 Internet chat rooms 7 Internet service providers, patents 234 Inventory account 233 contribution 78 improvement 72 taking 233–235 Investments 156 efficiency 122 mapping 121–123 returns 18–19 risk, diversification 158 Investors agreement 63 contribution, example 45–46 decisions erosion 37–38 reported financial information, role 37 triggering 30 disagreement 63 fault 50 importance 119 information contribution 46f demand, SEC role 203 needs 114 relevance 185 investor-relevant information system 159 irrationality 50–51 necessity 142–144 operating instructions, Strategic Resources & Consequences Report issue 197, 230 SUBJECT INDEX reaction, measurement 43–44 usefulness 122 valuation process 219–220 IPRD. See In-process-R&D Irrational investors 50–51 Jobs, Steve 52 Johnson, Don 31 Johnson & Johnson’s operations cash 165 Pfizer, comparison 165 Joint relevance-loss of earnings, problem 34–35 Joint ventures 86 rarity 7 ROI, assessment 188 Just-in-time strategy 7 Key performance indicators (KPIs) 113, 127 lists, disparateness 129 Knowledge economy 78 KYTHERA Biopharmaceuticals 164, 166 Lease capitalization, avoidance 222 Liabilities fair valuation 37–38 fair values 61 Liber Abaci (Fibonacci) 231 Life and health (LH) 147 Limited liability corporation, establishment 95–96 Litigation implementation concerns 205–206 risk 90 Lockheed Martin, innovation strategies 85 Lundholm, Russell 220–221 Management Discussion and Analysis (MD&A) section 5 Management, risk mitigation strategies 159 Managerial estimates, proliferation 38 Subject Index Managers competitive concerns 129 decisions, distortions 85–86 estimates/forecasts proliferation 219 verification, enabling 220–221 forecasts 47 performance-related information source 44 guidance 116 importance 119 wishful thinking 205 Marked-to-market items 97 Marked-to-myth 37, 97 Market share, loss 173 Markets, movement absence 19 earnings, impact 57 Market value (MV) 32–33, 38 capitalization 89 regression 89f Mark to market nontraded assets/liabilities 37–38 Media/entertainment, Strategic Resources & Consequences Report 133–135, 143f Medical costs, inflation (impact) 155–156 Medical devices, development 171 Merck joint development 168 Q3–2013 sales, decrease 174–175 Mergers and acquisitions (M&A) 96 Message, information 41–43 Metacloud Technology 216–217 Momentum (operations) 7 Monetary information 127 Morgan, J.


words: 49,604

The Weightless World: Strategies for Managing the Digital Economy by Diane Coyle

"Robert Solow", barriers to entry, Berlin Wall, Big bang: deregulation of the City of London, blue-collar work, Bretton Woods, business cycle, clean water, computer age, Corn Laws, creative destruction, cross-subsidies, David Ricardo: comparative advantage, dematerialisation, Diane Coyle, Edward Glaeser, everywhere but in the productivity statistics, financial deregulation, full employment, George Santayana, global village, hiring and firing, Howard Rheingold, income inequality, informal economy, invention of the sewing machine, invisible hand, Jane Jacobs, Joseph Schumpeter, Kickstarter, knowledge economy, labour market flexibility, laissez-faire capitalism, lump of labour, Marshall McLuhan, mass immigration, McJob, microcredit, moral panic, Network effects, new economy, Nick Leeson, night-watchman state, North Sea oil, offshore financial centre, pension reform, pensions crisis, Ronald Reagan, Silicon Valley, spinning jenny, The Death and Life of Great American Cities, the market place, The Wealth of Nations by Adam Smith, Thorstein Veblen, Tobin tax, two tier labour market, very high income, War on Poverty, winner-take-all economy, working-age population

The average weight of a real dollar of US exports halved between 1990 and 1996 alone, according to estimates from the Organisation for Economic Co-operation and Development (OECD), which reckoned half of member countries’ national output to be ‘knowledge based’ by the mid-1990s. Although here he emphasised miniaturisation and the use of new materials in making the same value of physical output lighter, the Fed chairman could have added the expansion of services as opposed to manufacturing, or in other words the switch away from physical output in all the developed economies. This switch includes not only the ‘knowledge’ economy, the growth of services ranging from management consultancy to the music industry that make extensive use of computer technologies, but also low-technology services like fast food restaurants. Although some of the technological leaps driving weightlessness are not all that recent, their embodiment in our economies is new — it takes upwards of 40 years for businesses to adopt new technologies.

It includes charities, voluntary organisations from unions to think tanks and lobby groups, nongovernmental organisations including the quangos that overlap with the public sector, not-for-profit businesses, churches, schools, housing associations, museums, and mutual and co-operative organisations.2 The list could go on. It could be extended to cover all the ‘unemployed’ people who describe themselves as ‘carers’, for example, of whom there are about 6 million in the UK. These are just as much part of the weightless world as jobs in the knowledge economy. The link is that they are all very people-intensive services whose purpose is to provide the service rather than maximise the profit that can be made from doing so. The absence of an emphasis on profit and productivity is precisely what will permit the sector to create jobs. It parallels the way some advanced economies have permitted the existence of an inefficient, sheltered sector as an employment policy, like retailing in Japan, safeguarded from competition by strict regulation, or the public sector in many northern European countries.


pages: 297 words: 103,910

Free culture: how big media uses technology and the law to lock down culture and control creativity by Lawrence Lessig

Brewster Kahle, Cass Sunstein, creative destruction, future of journalism, George Akerlof, Innovator's Dilemma, Internet Archive, invention of the printing press, Joi Ito, Kenneth Arrow, Kevin Kelly, knowledge economy, Louis Daguerre, new economy, prediction markets, prisoner's dilemma, profit motive, rent-seeking, Richard Florida, Richard Stallman, Ronald Coase, Ronald Reagan, Saturday Night Live, Silicon Valley, software patent, transaction costs

"The threat of piracy—the use of someone else's creative work without permission or compensation—has grown with the Internet." [70] See IFPI (International Federation of the Phonographic Industry), The Recording Industry Commercial Piracy Report 2003, July 2003, available at link #14. See also Ben Hunt, "Companies Warned on Music Piracy Risk," Financial Times, 14 February 2003, 11. [71] See Peter Drahos with John Braithwaite, Information Feudalism: Who Owns the Knowledge Economy? (New York: The New Press, 2003), 10¬13, 209. The Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement obligates member nations to create administrative and enforcement mechanisms for intellectual property rights, a costly proposition for developing countries. Additionally, patent rights may lead to higher prices for staple industries such as agriculture. Critics of TRIPS question the disparity between burdens imposed upon developing countries and benefits conferred to industrialized nations.

[195] Commission on Intellectual Property Rights, "Final Report: Integrating Intellectual Property Rights and Development Policy" (London, 2002), available at link #55. According to a World Health Organization press release issued 9 July 2002, only 230,000 of the 6 million who need drugs in the developing world receive them—and half of them are in Brazil. [196] See Peter Drahos with John Braithwaite, Information Feudalism: Who Owns the Knowledge Economy? (New York: The New Press, 2003), 37. [197] International Intellectual Property Institute (IIPI), Patent Protection and Access to HIV/AIDS Pharmaceuticals in Sub-Saharan Africa, a Report Prepared for the World Intellectual Property Organization (Washington, D.C., 2000), 14, available at link #56. For a firsthand account of the struggle over South Africa, see Hearing Before the Subcommittee on Criminal Justice, Drug Policy, and Human Resources, House Committee on Government Reform, H.


pages: 307 words: 96,543

Tightrope: Americans Reaching for Hope by Nicholas D. Kristof, Sheryl Wudunn

Affordable Care Act / Obamacare, basic income, Bernie Sanders, carried interest, correlation does not imply causation, creative destruction, David Brooks, Donald Trump, dumpster diving, Edward Glaeser, Elon Musk, epigenetics, full employment, Home mortgage interest deduction, housing crisis, impulse control, income inequality, Jeff Bezos, job automation, jobless men, knowledge economy, labor-force participation, low skilled workers, mandatory minimum, Martin Wolf, mass incarceration, Mikhail Gorbachev, offshore financial centre, randomized controlled trial, rent control, Robert Shiller, Robert Shiller, Ronald Reagan, Shai Danziger, single-payer health, Steven Pinker, The Spirit Level, universal basic income, upwardly mobile, Vanguard fund, War on Poverty, working poor

One study found that for each percentage point increase in the unemployment rate in a county, the incidence of child neglect rose by 20 percent. Disappearing jobs is a problem that varies greatly by region. Economists debate whether the American economy overall is at full employment, but it certainly isn’t in Flint, Michigan, where 35 percent of men of prime working age were not employed in 2018. Hubs of the “knowledge economy,” based on technology and education, have prospered, while rural areas and industrial regions continue to struggle. Half of all zip codes have less employment today than they did in 2007, while San Francisco, Seattle, Boston and New York are flourishing. Even more jobs may disappear in the coming years with the spread of artificial intelligence and machine learning. Truck drivers and cashiers, jobs that don’t require much education, could largely be replaced by automation.

There has been a growing premium in the labor market for educated workers, but Mississippi and other southern states have underinvested in education and other forms of human capital, particularly for blacks but also for whites. The South’s strategy was to cut taxes, on the theory that low taxes would attract businesses and boost the economic growth rate, but this was not terribly effective in the age of the knowledge economy. High-paying, high-technology employers want low tax rates, of course, but above all they require a pool of educated workers, so they often end up investing in high-tax, high-education states like California, Massachusetts and New York. This is amplified when right-wing politicians in the South defend Confederate statues or demonize gays or transgender people, and the result is further economic backwardness and frustration.


pages: 346 words: 97,330

Ghost Work: How to Stop Silicon Valley From Building a New Global Underclass by Mary L. Gray, Siddharth Suri

Affordable Care Act / Obamacare, Amazon Mechanical Turk, augmented reality, autonomous vehicles, barriers to entry, basic income, big-box store, bitcoin, blue-collar work, business process, business process outsourcing, call centre, Capital in the Twenty-First Century by Thomas Piketty, cloud computing, collaborative consumption, collective bargaining, computer vision, corporate social responsibility, crowdsourcing, data is the new oil, deindustrialization, deskilling, don't be evil, Donald Trump, Elon Musk, employer provided health coverage, en.wikipedia.org, equal pay for equal work, Erik Brynjolfsson, financial independence, Frank Levy and Richard Murnane: The New Division of Labor, future of work, gig economy, glass ceiling, global supply chain, hiring and firing, ImageNet competition, industrial robot, informal economy, information asymmetry, Jeff Bezos, job automation, knowledge economy, low skilled workers, low-wage service sector, market friction, Mars Rover, natural language processing, new economy, passive income, pattern recognition, post-materialism, post-work, race to the bottom, Rana Plaza, recommendation engine, ride hailing / ride sharing, Ronald Coase, Second Machine Age, sentiment analysis, sharing economy, Shoshana Zuboff, side project, Silicon Valley, Silicon Valley startup, Skype, software as a service, speech recognition, spinning jenny, Stephen Hawking, The Future of Employment, The Nature of the Firm, transaction costs, two-sided market, union organizing, universal basic income, Vilfredo Pareto, women in the workforce, Works Progress Administration, Y Combinator

New York: ACM, 2016. https://doi.org/10.1145/2818048.2819942. Green, Francis. Skills and Skilled Work: An Economic and Social Analysis. Oxford, England: Oxford University Press, 2013. Greenhouse, S. “Equal Work, Less-Equal Perks: Microsoft Leads the Way in Filling Jobs with ‘Permatemps.’” New York Times, March 30, 1998. Gregg, Melissa. Work’s Intimacy. Cambridge, England: Polity, 2011. ———. Counterproductive: Time Management in the Knowledge Economy. Durham, NC: Duke University Press, 2018. Grier, David Allen. When Computers Were Human. Princeton, NJ: Princeton University Press, 2005. Grossman, Jonathan. “Fair Labor Standards Act of 1938: Maximum Struggle for a Minimum Wage.” Office of the Assistant Secretary for Administration and Management, United States Department of Labor website. Originally published in Monthly Labor Review, June 1978. https://www.dol.gov/oasam/programs/history/flsa1938.htm.

Coase, “The Nature of the Firm,” Economica 4, no. 16 (1937): 388, https://doi.org/10.1111/j.1468-0335.1937.tb00002.x. [back] 4. Mason and Suri, “Amazon’s Mechanical Turk,” 1–23. [back] 5. For generative, pivotal critiques of this framing, see Ilana Gershon, Down and Out in the New Economy: How People Find (or Don’t Find) Work Today (Chicago: University of Chicago Press, 2017); Melissa Gregg, Work’s Intimacy (Cambridge, England: Polity, 2011); Melissa Gregg, Counterproductive: Time Management in the Knowledge Economy (Durham, NC: Duke University Press, 2018); Gina Neff, Venture Labor: Work and the Burden of Risk in Innovative Industries (Cambridge, MA: MIT Press, 2012); Trebor Scholz, Uberworked and Underpaid: How Workers Are Disrupting the Digital Economy (Cambridge, England: Polity, 2016). [back] 6. Our results show that many workers share lucrative tasks and information about reputable requesters with their network connections.


Data and the City by Rob Kitchin,Tracey P. Lauriault,Gavin McArdle

A Declaration of the Independence of Cyberspace, bike sharing scheme, bitcoin, blockchain, Bretton Woods, Chelsea Manning, citizen journalism, Claude Shannon: information theory, clean water, cloud computing, complexity theory, conceptual framework, corporate governance, correlation does not imply causation, create, read, update, delete, crowdsourcing, cryptocurrency, dematerialisation, digital map, distributed ledger, fault tolerance, fiat currency, Filter Bubble, floating exchange rates, global value chain, Google Earth, hive mind, Internet of things, Kickstarter, knowledge economy, lifelogging, linked data, loose coupling, new economy, New Urbanism, Nicholas Carr, open economy, openstreetmap, packet switching, pattern recognition, performance metric, place-making, RAND corporation, RFID, Richard Florida, ride hailing / ride sharing, semantic web, sentiment analysis, sharing economy, Silicon Valley, Skype, smart cities, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia, smart contracts, smart grid, smart meter, social graph, software studies, statistical model, TaskRabbit, text mining, The Chicago School, The Death and Life of Great American Cities, the market place, the medium is the message, the scientific method, Toyota Production System, urban planning, urban sprawl, web application

Richardson and Chang Woon Nam 70 Cities, State and Globalization City-regional governance Tassilo Herrschel 69 The Creative Class Goes Global Edited by Charlotta Mellander, Richard Florida, Bjørn Asheim and Meric Gertler 68 Entrepreneurial Knowledge, Technology and the Transformation of Regions Edited by Charlie Karlsson, Börje Johansson and Roger Stough 67 The Economic Geography of the IT Industry in the Asia Pacific Region Edited by Philip Cooke, Glen Searle and Kevin O’Connor 66 Working Regions Reconnecting innovation and production in the knowledge economy Jennifer Clark 65 Europe’s Changing Geography The impact of inter-regional networks Edited by Nicola Bellini and Ulrich Hilpert 64 The Value of Arts and Culture for Regional Development A Scandinavian perspective Edited by Lisbeth Lindeborg and Lars Lindkvist 63 The University and the City John Goddard and Paul Vallance 62 Re-framing Regional Development Evolution, innovation and transition Edited by Philip Cooke 61 Networking Regionalised Innovative Labour Markets Edited by Ulrich Hilpert and Helen Lawton Smith 60 Leadership and Change in Sustainable Regional Development Edited by Markku Sotarauta, Ina Horlings and Joyce Liddle 59 Regional Development Agencies: The Next Generation?

Kogler 46 Leadership and Place Edited by Chris Collinge, John Gibney and Chris Mabey 45 Migration in the 21st Century Rights, outcomes, and policy Kim Korinek and Thomas Maloney 44 The Futures of the City Region Edited by Michael Neuman and Angela Hull 43 The Impacts of Automotive Plant Closures A tale of two cities Edited by Andrew Beer and Holli Evans 42 Manufacturing in the New Urban Economy Willem van Winden, Leo van den Berg, Luis de Carvalho and Erwin van Tuijl 41 Globalizing Regional Development in East Asia Production networks, clusters, and entrepreneurship Edited by Henry Wai-chung Yeung 40 China and Europe The implications of the rise of China as a global economic power for Europe Edited by Klaus Kunzmann, Willy A Schmid and Martina Koll-Schretzenmayr 39 Business Networks in Clusters and Industrial Districts The governance of the global value chain Edited by Fiorenza Belussi and Alessia Sammarra 38 Whither Regional Studies? Edited by Andy Pike 33 Geographies of the New Economy Critical reflections Edited by Peter W. Daniels, Andrew Leyshon, Michael J. Bradshaw and Jonathan Beaverstock 32 The Rise of the English Regions? Edited by Irene Hardill, Paul Benneworth, Mark Baker and Leslie Budd 31 Regional Development in the Knowledge Economy Edited by Philip Cooke and Andrea Piccaluga 30 Regional Competitiveness Edited by Ron Martin, Michael Kitson and Peter Tyler 37 Intelligent Cities and Globalisation of Innovation Networks Nicos Komninos 29 Clusters and Regional Development Critical reflections and explorations Edited by Bjørn Asheim, Philip Cooke and Ron Martin 36 Devolution, Regionalism and Regional Development The UK experience Edited by Jonathan Bradbury 28 Regions, Spatial Strategies and Sustainable Development David Counsell and Graham Haughton 35 Creative Regions Technology, culture and knowledge entrepreneurship Edited by Philip Cooke and Dafna Schwartz 27 Sustainable Cities Graham Haughton and Colin Hunter 34 European Cohesion Policy Willem Molle 26 Geographies of Labour Market Inequality Edited by Ron Martin and Philip S.


pages: 116 words: 31,356

Platform Capitalism by Nick Srnicek

3D printing, additive manufacturing, Airbnb, Amazon Mechanical Turk, Amazon Web Services, Capital in the Twenty-First Century by Thomas Piketty, cloud computing, collaborative economy, collective bargaining, deindustrialization, deskilling, disintermediation, future of work, gig economy, Infrastructure as a Service, Internet of things, Jean Tirole, Jeff Bezos, knowledge economy, knowledge worker, liquidity trap, low skilled workers, Lyft, Mark Zuckerberg, means of production, mittelstand, multi-sided market, natural language processing, Network effects, new economy, Oculus Rift, offshore financial centre, pattern recognition, platform as a service, quantitative easing, RFID, ride hailing / ride sharing, Robert Gordon, self-driving car, sharing economy, Shoshana Zuboff, Silicon Valley, Silicon Valley startup, software as a service, TaskRabbit, the built environment, total factor productivity, two-sided market, Uber and Lyft, Uber for X, uber lyft, unconventional monetary instruments, unorthodox policies, Zipcar

These changes have received labels such as ‘paradigm shift’ from McKinsey1 and ‘fourth industrial revolution’ from the executive chairman of the World Economic Forum and, in more ridiculous formulations, have been compared in importance to the Renaissance and the Enlightenment.2 We have witnessed a massive proliferation of new terms: the gig economy, the sharing economy, the on-demand economy, the next industrial revolution, the surveillance economy, the app economy, the attention economy, and so on. The task of this chapter is to examine these changes. Numerous theorists have argued that these changes mean we live in a cognitive, or informational, or immaterial, or knowledge economy. But what does this mean? Here we can find a number of interconnected but distinct claims. In Italian autonomism, this would be a claim about the ‘general intellect’, where collective cooperation and knowledge become a source of value.3 Such an argument also entails that the labour process is increasingly immaterial, oriented towards the use and manipulation of symbols and affects. Likewise, the traditional industrial working class is increasingly replaced by knowledge workers or the ‘cognitariat’.


pages: 471 words: 109,267

The Verdict: Did Labour Change Britain? by Polly Toynbee, David Walker

banking crisis, Big bang: deregulation of the City of London, Bob Geldof, Boris Johnson, call centre, central bank independence, congestion charging, Corn Laws, Credit Default Swap, decarbonisation, deglobalization, deindustrialization, Etonian, failed state, first-past-the-post, Frank Gehry, gender pay gap, Gini coefficient, high net worth, hiring and firing, illegal immigration, income inequality, Intergovernmental Panel on Climate Change (IPCC), knowledge economy, labour market flexibility, market bubble, mass immigration, millennium bug, moral panic, North Sea oil, Northern Rock, offshore financial centre, pension reform, plutocrats, Plutocrats, Ponzi scheme, profit maximization, purchasing power parity, Right to Buy, shareholder value, Skype, smart meter, stem cell, The Spirit Level, too big to fail, University of East Anglia, working-age population, Y2K

But it was also typical of the times that the in-phrase became ‘cultural and creative industries’: the arts to become money-spinners, culture and commerce combining in mystical union. Indeed, by 2009 the culture industries made up 8 per cent of GDP – a considerable contribution and significantly around the same amount as the City and financial services, including all high street banking and insurance. Another catchphrase was knowledge economy – trying to capture the commercial importance of ideas and experiences that were also significant in themselves. Labour had the glimmerings of a vision of Britain, open, innovative, arty, keen on the pursuit of knowledge and endowed by public money – and very cheap at the price. Labour bequeathed something much richer than they inherited, but had not painted a national transfiguration. The clubber’s verdict Policy, politics and pogoing – until the recession and beyond, clubbers kept on dancing without a thought about Labour, Westminster, wars or welfare.

., 1 Gallagher, Liam, 1 Gallagher, Noel, 1 gambling, 1 gangmasters, 1, 2 gas, 1 Gates, Bill, 1 Gateshead, 1 Gaza, 1 GCHQ, 1 GCSEs, 1, 2, 3, 4 Gehry, Frank, 1 Geldof, Bob, 1 gender reassignment, 1 General Teaching Council, 1 genetically modified crops, 1 Germany, 1, 2, 3, 4, 5, 6, 7 economy and business, 1, 2, 3, 4 and education, 1, 2 and health, 1, 2 Ghana, 1 Ghandi’s curry house, 1 Ghent, 1 Gladstone, William Ewart, 1, 2 Glaister, Professor Stephen, 1 Glasgow, 1, 2, 3, 4 Gleneagles summit, 1, 2, 3, 4, 5 globalization, 1, 2, 3, 4, 5, 6, 7 and crime, 1 and foreign policy, 1, 2, 3 and inequality, 1 and migration, 1, 2 Gloucester, 1 Goldacre, Ben, 1 Good Friday agreement, 1 Goodwin, Sir Fred, 1 Goody, Jade, 1 Gormley, Antony, 1 Gould, Philip, 1 grandparents, and childcare, 1 Gray, Simon, 1 Great Yarmouth, 1 Greater London Authority, 1, 2 Greater London Council, 1 green spaces, 1 Greenberg, Stan, 1 Greengrass, Paul, 1 Greenspan, Alan, 1, 2 Greenwich, 1 Gregg, Paul, 1 Guardian, 1, 2, 3 Guizot, François, 1 Gulf of Mexico oil spill, 1 Gummer, John, 1 Gurkhas, 1 Guthrie of Craigiebank, Lord, 1 Guy’s and St Thomas’s Hospital, 1 habeas corpus, suspension of, 1 Hacienda Club, 1 Hackney, 1 Hale, Baroness Brenda, 1 Hallé Orchestra, 1 Ham, Professor Chris, 1 Hamilton, Lewis, 1 Hammersmith Hospital, 1 Hammond, Richard, 1 Hardie, Keir, 1 Hardy, Thea, 1 Haringey, 1, 2 Harman, Harriet, 1 Harris of Peckham, Lord, 1 Harrison, PC Dawn, 1, 2 Harrow School, 1 Hartlepool, 1, 2 Hastings, 1, 2 Hatfield rail crash, 1 Hatt family, 1, 2, 3, 4 health, 1 and private sector, 1, 2 and social class, 1 spending on, 1, 2 Health Action Zones, 1 Health and Safety Executive, 1 Heathcote, Paul, 1 Heathrow airport, 1, 2, 3, 4 Hellawell, Keith, 1 Hennessy, Professor Peter, 1 Henry, Donna Charmaine, 1, 2, 3 heroin, 1 Hewitt, Patricia, 1, 2 Higgs, Sir Derek, 1 Hills, Professor John, 1, 2, 3 Hirst, Damien, 1 HMRC, 1, 2, 3 Hogg, John, 1, 2, 3 Hoggart, Richard, 1 Holly, Graham, 1 homelessness, 1, 2 Homerton Hospital, 1 homosexuality, 1, 2, 3 ‘honour’ killings, 1 Hoon, Geoff, 1 hospital-acquired infections, 1 hospitals and clinics, 1, 2, 3, 4 A&E units, 1, 2 closures, 1, 2, 3 foundation trusts, 1, 2, 3, 4, 5 and PFI, 1 House of Commons reforms, 1, 2 House of Lords reforms, 1, 2, 3, 4 housing market, 1, 2, 3 housing policies, 1, 2, 3, 4, 5 Howe, Elspeth, 1 Hoxton, 1 Huddersfield, 1 Hudson, Joseph, 1 Hull, 1, 2, 3 Human Rights Act, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 Humber Bridge, 1 hunting ban, 1 Hussein, Saddam, 1, 2, 3, 4 Hutton, John, 1 Hutton, Will, 1, 2 identity cards, 1, 2 If (Kipling), 1 Imperial War Museum North, 1 income inequalities, 1, 2, 3 gender pay gap, 1, 2 and high earners, 1 and social class, 1 Independent Police Complaints Commission (IPCC), 1 Independent Safeguarding Authority, 1 independent-sector treatment centres (ISTCs), 1 Index of Multiple Deprivation, 1 India, 1, 2, 3, 4, 5, 6 individual learning accounts, 1 inflation, 1 and housing market, 1, 2 International Criminal Court, 1 International Monetary Fund (IMF), 1, 2, 3 internet, 1, 2, 3 and crime, 1 and cyber-bullying, 1 file sharing, 1 gambling, 1 and sex crimes, 1 Iran, 1, 2, 3 Iraq, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16 arms supplies, 1 Chilcot inquiry, 1, 2, 3, 4 and Territorial Army, 1 and WMD, 1 Ireland, 1, 2, 3 Irish famine, 1 Irvine of Lairg, Lord, 1, 2 Ishaq, Khyra, 1 Islamabad, 1 Isle of Man, 1 Isle of Wight, 1, 2 Israel, 1 Italy, 1, 2, 3 and football, 1 Ivory Coast, 1 Japan, 1, 2, 3, 4 Jenkins, Roy, 1, 2 Jerry Springer: The Opera, 1 Jobcentre Plus, 1, 2 John Lewis Partnership, 1, 2 Johnson, Alan, 1, 2, 3, 4 Johnson, Boris, 1, 2 Judge, Lord (Igor), 1 Judge, Professor Ken, 1 Julius, DeAnne, 1 jury trials, 1, 2 Kabul, 1 Kapoor, Anish, 1, 2 Karachi, 1 Karadžic, Radovan, 1 Kashmir, 1 Kaufman, Gerald, 1 Keegan, William, 1 Keep Britain Tidy, 1 Kelvingrove Art Gallery and Museum, 1 Kensit, Patsy, 1 Keynes, John Maynard, 1 Keys, Kenton, 1 Kidderminster Hospital, 1 King, Sir David, 1, 2 King, Mervyn, 1 King Edward VI School, 1 King’s College Hospital, 1 Kingsnorth power station, 1 Kirklees, 1 Knight, Jim, 1 knighthoods, 1 knowledge economy, 1 Kosovo, 1, 2, 3, 4 Kynaston, David, 1 Kyoto summit and protocols, 1, 2, 3 Labour Party membership, 1 Lacey, David, 1 Ladbroke Grove rail crash, 1 Lamb, General Sir Graeme, 1 Lambert, Richard, 1 landmines, 1 Lansley, Andrew, 1 lapdancing, 1 Las Vegas, 1 Lawrence, Stephen, 1 Lawson, Mark, 1 Layard, Professor Richard, 1 Le Grand, Professor Julian, 1 Lea, Ruth, 1 Lea Valley High School, 1, 2, 3, 4, 5, 6 Leahy, Sir Terry, 1, 2 learndirect, 1 Learning and Skills Council, 1 learning difficulties, 1, 2 learning mentors, 1 Leeds, 1, 2, 3, 4 legal reforms, 1 Leigh, Mike, 1 Lenon, Barnaby, 1 Lewes, 1 Lewisham, 1 Liberty, 1 licensing laws, 1, 2 life expectancy, 1, 2, 3, 4, 5 Life on Mars, 1 Lincoln, 1 Lindsell, Tracy, 1, 2 Lindsey oil refinery, 1 Lisbon Treaty, 1 Liverpool, 1, 2, 3, 4, 5, 6 Liverpool FC, 1 living standards, 1, 2 living wage campaign, 1, 2 Livingstone, Ken, 1, 2, 3, 4, 5 Livni, Tzipi, 1 Loaded magazine, 1 local government, 1, 2, 3 and elected mayors, 1 Lockerbie bomber, 1 London, 1, 2, 3, 4, 5, 6 bombings, 1, 2 congestion charge, 1, 2 detention of foreign leaders, 1 G20 protests, 1 Iraq war protests, 1, 2 mayoral election, 1, 2 and transport policy, 1, 2, 3 London Array wind farm, 1 Longannet, 1 Longfield, Anne, 1 Lord-Marchionne, Sacha, 1 Lorenzetti, Ambrogio, 1 lorry protests, 1, 2 Lowry Museum, 1 Lumley, Joanna, 1 Luton, 1, 2, 3, 4 Lyons, Sir Michael, 1 Macfadden, Julia, 1 Machin, Professor Stephen, 1, 2 Maclean, David, 1 Macmillan, Harold, 1 Macmillan, James, 1 McNulty, Tony, 1 Macpherson, Sir Nick, 1 Macpherson, Sir William, 1 McQueen, Alexander, 1 Madrid, 1, 2, 3 Major, John, 1, 2, 3, 4, 5, 6 Malaya, 1 Malloch Brown, Mark, 1 Manchester, 1, 2, 3, 4, 5, 6 club scene, 1, 2 and crime, 1, 2 Gorton, 1, 2, 3, 4, 5, 6 and local government, 1 and transport policy, 1, 2, 3 Manchester Academy, 1 Manchester United FC, 1, 2 Manchester University, 1 Mandelson, Peter, 1, 2 Manpower Services Commission, 1 manufacturing, 1, 2, 3 Margate, 1 ‘market for talent’ myth, 1 marriage rate, 1 Martin, Michael, 1 maternity and paternity leave, 1, 2 Mayfield, Charlie, 1 Medical Research Council, 1 mental health, 1, 2, 3, 4 mephedrone, 1 Metcalf, Professor David, 1 Metropolitan Police, 1, 2, 3 Mexico, 1, 2 MG Rover, 1 Michael, Alun, 1 Middlesbrough College, 1, 2 migration, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 Milburn, Alan, 1, 2, 3, 4, 5 Miliband, David, 1, 2, 3, 4, 5, 6 Miliband, Ed, 1, 2, 3 Millennium Cohort Study, 1, 2 Millennium Dome, 1, 2, 3 Miloševic, Slobodan, 1 Milton Keynes, 1 minimum wage, 1, 2, 3, 4, 5, 6, 7 Mitchell, Senator George, 1 modern art, 1 Mohamed, Binyam, 1 Monbiot, George, 1 Moray, 1 Morecambe, 1, 2 Morecambe Bay cockle pickers, 1 Morgan, Piers, 1 Morgan, Rhodri, 1 mortgage interest relief, 1 Mosley, Max, 1 motor racing, 1 Mowlam, Mo, 1 Mozambique, 1 MPs’ expenses, 1, 2, 3, 4, 5 MRSA, 1 Mugabe, Robert, 1 Muijen, Matt, 1 Mulgan, Geoff, 1 Mullin, Chris, 1 Murdoch, Rupert, 1, 2, 3 Murphy, Richard, 1 museums and galleries, 1, 2, 3 music licensing, 1 Muslims, 1, 2, 3, 4, 5 mutualism, 1 Myners, Paul, 1 nanotechnology, 1, 2, 3 National Air Traffic Control System, 1 National Care Service, 1 national curriculum, 1 national debt, 1 National Forest, 1 National Health Service (NHS) cancer plan, 1 drugs teams, 1 and employment, 1, 2 internal market, 1 IT system, 1 league tables, 1 managers, 1, 2 NHS direct, 1 primary care, 1 productivity, 1, 2 and public satisfaction, 1 staff numbers and pay, 1 and targets, 1, 2, 3 waiting times, 1, 2, 3, 4, 5, 6, 7, 8 National Heart Forum, 1 National Institute for Health and Clinical Excellence (NICE), 1, 2 National Insurance, 1, 2, 3, 4, 5 National Lottery, 1, 2, 3 National Offender Management Service, 1 National Savings, 1 National Theatre, 1 Natural England, 1, 2 Nazio, Tiziana, 1 Neighbourhood Watch, 1 Netherlands, 1, 2 neurosurgery, 1 New Deal, 1, 2, 3, 4, 5, 6, 7 New Deal for Communities, 1, 2 New Forest, 1 Newcastle upon Tyne, 1, 2 Newham, 1, 2 newspapers, 1, 2, 3, 4, 5 Nigeria, 1 Nightingale, Florence, 1 non-doms, 1 North Korea, 1 North Middlesex Hospital, 1 North Sea oil and gas, 1 Northern Ireland, 1, 2, 3, 4, 5, 6, 7 Northern Rock, 1, 2, 3, 4, 5 Norway, 1 Nottingham, 1, 2 NSPCC, 1 nuclear power, 1 Number Ten Delivery Unit, 1 nurses, 1, 2, 3, 4 Nutt, Professor David, 1 NVQs, 1 O2 arena, 1 Oakthorpe primary school, 1, 2 Oates, Tim, 1 Obama, Barack, 1, 2 obesity, 1, 2 Octagon consortium, 1 Office for National Statistics, 1, 2 Office of Security and Counter Terrorism, 1 Ofsted, 1, 2, 3, 4, 5 Ofwat, 1 Oldham, 1, 2, 3, 4 O’Leary, Michael, 1 Oliver, Jamie, 1, 2 Olympic Games, 1, 2, 3 Open University, 1 O’Reilly, Damien, 1, 2 orthopaedics, 1 Orwell, George, 1, 2 outsourcing, 1, 2, 3, 4 overseas aid, 1, 2 Oxford University, 1 paedophiles, 1, 2, 3 Page, Ben, 1, 2 Pakistan, 1, 2, 3, 4, 5, 6, 7 Palestine, 1, 2 parenting, 1 absent parents, 1 lone parents, 1, 2 teenage parents, 1 Paris, 1, 2 Park Lane, 1 Parkinson, Professor Michael, 1 particle physics, 1 party funding, 1, 2, 3 passport fraud, 1 Passport Office, 1 Patch, Harry, 1 Payne, Sarah, 1, 2 Peach, Blair, 1 Pearce, Nick, 1 Peckham, 1, 2 Aylesbury estate, 1 Peel, Sir Robert, 1 pensioner poverty, 1, 2 pensions, 1, 2 occupational pensions, 1, 2 pension funds, 1, 2 private pensions, 1 public-sector pensions, 1 state pension, 1, 2 Persian Gulf, 1 personal, social and health education, 1 Peterborough, 1 Peugeot, 1 Philips, Helen, 1 Phillips, Lord (Nicholas), 1, 2 Phillips, Trevor, 1 Pilkington, Fiona, 1 Pimlico, 1 Pinochet, Augusto, 1 Plymouth, 1, 2 Poland, 1, 2 police, 1 and demonstrations, 1 numbers, 1, 2, 3 in schools, 1, 2, 3 pornography, 1 Portsmouth FC, 1, 2 Portugal, 1 post offices, 1 Postlethwaite, Pete, 1 poverty, 1, 2, 3 see also child poverty; pensioner poverty Premier League, 1 Prescott, John, 1, 2, 3, 4, 5 press officers, 1 Preston, 1 Prevent strategy, 1 Primary Care Trusts (PCTs), 1, 2 prisons, 1, 2 Private Finance Initiative (PFI), 1, 2 probation, 1, 2 property ownership, 1 prostitution, 1, 2, 3 Public Accounts Committee, 1 public sector reform, 1, 2 public service agreements, 1 public spending, 1, 2, 3 and the arts, 1 and science, 1 Pugh, Martin, 1 Pullman, Philip, 1 QinetiQ, 1 Quality and Outcomes Framework, 1 quangos, 1, 2 Queen, The, 1 Quentin, Lieutenant Pete, 1, 2 race relations legislation, 1 racism, 1, 2 RAF, 1, 2, 3 RAF Brize Norton, 1 railways, 1 Rand, Ayn, 1 Rawmarsh School, 1 Raynsford, Nick, 1 Reckitt Benckiser, 1 recycling, 1 Redcar, 1 regional assemblies, 1, 2 regional development agencies (RDAs), 1, 2, 3 regional policy, 1 Reid, John, 1 Reid, Richard, 1 religion, 1, 2 retirement age, 1, 2 right to roam, 1 Rimington, Stella, 1 Rio Earth summit, 1 road transport, 1 Rochdale, 1, 2 Roche, Barbara, 1 Rogers, Richard, 1 Romania, 1, 2 Rome, 1 Rooney, Wayne, 1 Roosevelt, Franklin D., 1 Rosetta Stone, 1 Rosyth, 1 Rotherham, 1, 2, 3 Royal Opera House, 1 Royal Shakespeare Company, 1 Royal Society for the Protection of Birds, 1 Rugby, 1 rugby union, 1 Rumsfeld, Donald, 1 rural affairs, 1, 2 Rushdie, Salman, 1 Russia, 1, 2 Rwanda, 1 Ryanair, 1, 2 Sainsbury, Lord David, 1 St Austell, 1 St Bartholomew’s Hospital, 1, 2 St Pancras International station, 1 Salford, 1, 2, 3, 4 Sanchez, Tia, 1 Sandwell, 1 Sarkozy, Nicolas, 1, 2 Savill, Superintendent Paul, 1 Saville, Lord, 1 savings ratio, 1 Scandinavia, 1, 2, 3 Scholar, Sir Michael, 1 school meals, 1, 2 school uniforms, 1 school-leaving age, 1 schools academies, 1, 2, 3, 4 building, 1 class sizes, 1 comprehensive schools, 1, 2 faith schools, 1, 2, 3, 4 grammar schools, 1, 2, 3 and inequality, 1 nursery schools, 1 and PFI, 1, 2, 3 police in, 1, 2, 3 primary schools, 1, 2, 3, 4, 5 private schools, 1, 2 secondary schools, 1, 2, 3 in special measures, 1 special schools, 1 specialist schools, 1 and sport, 1 science, 1, 2, 3, 4, 5 Scotland, 1, 2, 3, 4, 5, 6, 7, 8, 9 and children, 1 devolution, 1 electricity generation, 1 and health, 1, 2, 3, 4, 5 Scottish parliament, 1, 2 Section 1, 2 security services, 1 MI5, 1, 2, 3 Sedley, Stephen, 1 segregation, 1 self-employment, 1 Sellafield, 1 Serious Organized Crime Agency, 1 sex crimes, 1 Sex Discrimination Act, 1 Shankly, Bill, 1 Sharkey, Feargal, 1 Shaw, Liz, 1 Sheen, Michael, 1 Sheffield, 1, 2, 3, 4, 5, 6 Sheringham, 1 Shetty, Shilpa, 1 Shipman, Harold, 1 shopping, 1 Short, Clare, 1 Siemens, 1 Siena, 1 Sierra Leone, 1, 2 Skeet, Mavis, 1 skills councils, 1 slavery, 1 Slough, 1 Smith, Adam, 1 Smith, Chris, 1 Smith, Jacqui, 1, 2 Smith, John, 1, 2 Smithers, Professor Alan, 1, 2 smoking ban, 1, 2 Snowden, Philip, 1 social care, 1, 2, 3 Social Chapter opt-out, 1 social exclusion, 1, 2 Social Fund, 1 social mobility, 1, 2 social sciences, 1 social workers, 1 Soham murders, 1, 2, 3, 4 Solihull, 1, 2 Somalia, 1, 2 Souter, Brian, 1 South Africa, 1 South Downs, 1 Spain, 1, 2, 3 special advisers, 1 speed cameras, 1 Speenhamland, 1 Spelman, Caroline, 1 Spence, Laura, 1 sport, 1, 2 see also football; Olympic Games Sri Lanka, 1, 2 Stafford Hospital, 1 Staffordshire University, 1 Standard Assessment Tests (Sats), 1, 2, 3 Standards Board for England, 1 statins, 1, 2, 3 stem cell research, 1 STEM subjects, 1 Stephenson, Sir Paul, 1 Stern, Sir Nicholas, 1, 2 Stevenson, Lord (Dennis), 1 Stevenson, Wilf, 1 Steyn, Lord, 1 Stiglitz, Joseph, 1 Stockport, 1 Stonehenge, 1 Stoppard, Tom, 1 Straw, Jack, 1, 2, 3, 4, 5 student fees, 1 Stuff Happens, 1 Sudan, 1, 2 Sugar, Alan, 1 suicide bombing, 1 suicides, 1 Sun, 1, 2 Sunday Times, 1, 2 Sunderland, 1, 2 supermarkets, 1, 2 Supreme Court, 1, 2 Sure Start, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 surveillance, 1, 2 Sutherland, Lord (Stewart), 1 Swansea, 1 Sweden, 1, 2, 3, 4, 5 Swindon, 1 Taliban, 1, 2 Tallinn, 1 Tanzania, 1 Tate Modern, 1 Taunton, 1 tax avoidance, 1, 2, 3 tax credits, 1, 2, 3, 4, 5, 6, 7, 8 council tax credit, 1 pension credit, 1, 2, 3 R&D credits, 1 taxation, 1, 2 10p tax rate, 1 capital gains tax, 1, 2 corporation tax, 1, 2, 3, 4 council tax, 1, 2 fuel duty, 1, 2, 3 green taxes, 1, 2 and income inequalities, 1 income tax, 1, 2, 3, 4 inheritance tax, 1, 2 poll tax, 1 stamp duty, 1, 2, 3 vehicle excise duty, 1 windfall tax, 1, 2, 3 see also National Insurance; VAT Taylor, Damilola, 1 Taylor, Robert, 1 teachers, 1, 2, 3 head teachers, 1, 2 salaries, 1, 2 teaching assistants, 1, 2 teenage pregnancy, 1, 2, 3 Teesside University, 1 television and crime, 1 and gambling, 1 talent shows, 1 television licence, 1, 2, 3 Territorial Army, 1 terrorism, 1, 2, 3, 4, 5, 6, 7 Terry, John, 1 Tesco, 1, 2, 3, 4 Tewkesbury, 1 Thames Gateway, 1 Thameswey, 1 Thatcher, Margaret, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14 Thatcherism, 1, 2, 3 theatre, 1 Thornhill, Dorothy, 1 Thorp, John, 1 Tibet, 1 Tilbury, 1 Times, The, 1 Times Educational Supplement, 1, 2 Timmins, Nick, 1 Titanic, 1 Tomlinson, Mike, 1 Topman, Simon, 1, 2 torture, 1, 2 trade unions, 1, 2, 3 Trades Union Congress (TUC), 1, 2, 3 tramways, 1 transport policies, 1, 2 Trident missiles, 1, 2, 3 Triesman, Lord, 1 Turkey, 1, 2 Turnbull, Lord (Andrew), 1 Turner, Lord (Adair), 1, 2, 3 Tweedy, Colin, 1 Tyneside Metro, 1 Uganda, 1 UK Film Council, 1 UK Sport, 1 UK Statistics Authority, 1 unemployment, 1, 2, 3, 4, 5, 6, 7 United Nations, 1, 2, 3 United States of America, 1, 2 Anglo-American relationship, 1, 2, 3, 4, 5, 6, 7 and child poverty, 1 and clean technologies, 1 economy and business, 1, 2, 3 and education, 1, 2, 3 and healthcare, 1, 2 and income inequalities, 1 and internet gambling, 1 and minimum wage, 1 universities, 1, 2, 3, 4, 5 and migration, 1 and terrorism, 1 tuition fees, 1 University College London Hospitals, 1 University for Industry, 1 University of East Anglia, 1 University of Lincoln, 1 Urban Splash, 1, 2 Vanity Fair, 1 VAT, 1, 2, 3 Vauxhall, 1 Venables, Jon, 1 Vestas wind turbines, 1 Victoria and Albert Museum, 1 Waitrose, 1 Waldfogel, Jane, 1 Wales, 1, 2, 3, 4, 5, 6, 7, 8, 9 and children, 1 devolution, 1 Walker, Sir David, 1 walking, 1, 2 Walsall, 1 Wanless, Sir Derek, 1 Wanstead, 1 Warm Front scheme, 1 Warner, Lord Norman, 1 Warsaw, 1 Warwick accord, 1 water utilities, 1 Watford, 1 welfare benefits child benefit, 1, 2 Employment Support Allowance, 1 and fraud, 1, 2, 3, 4 housing benefit, 1 incapacity benefit, 1, 2 Income Support, 1 Jobseeker’s Allowance, 1, 2, 3 and work, 1, 2 Welsh assembly, 1, 2 Wembley Stadium, 1 Westfield shopping mall, 1 Wetherspoons, 1 White, Marco Pierre, 1 Whittington Hospital, 1 Wiles, Paul, 1 Wilkinson, Richard, and Kate Pickett, 1 Williams, Professor Karel, 1 Williams, Raymond, 1 Williams, Rowan, 1 Wilson, Harold, 1, 2, 3, 4, 5, 6, 7 Wilson, Sir Richard, 1 wind turbines, 1, 2 Winslet, Kate, 1 winter fuel payments, 1 Wire, The, 1 Woking, 1, 2 Wolverhampton, 1 Woolf, Lord, 1 Wootton Bassett, 1, 2 working-class culture, 1 working hours, 1, 2 World Bank, 1 Wrexham, 1 Wright Robinson School, 1, 2, 3 xenophobia, 1 Y2K millennium bug, 1 Yarlswood detention centre, 1 Yeovil, 1 Yiewsley, 1 York, 1, 2, 3, 4 Young Person’s Guarantee, 1 Youth Justice Board, 1 Zimbabwe, 1, 2 About the Author Polly Toynbee is the Guardian’s social and political commentator.


pages: 398 words: 107,788

Coding Freedom: The Ethics and Aesthetics of Hacking by E. Gabriella Coleman

activist lawyer, Benjamin Mako Hill, commoditize, crowdsourcing, Debian, Donald Knuth, dumpster diving, en.wikipedia.org, financial independence, ghettoisation, GnuPG, Hacker Ethic, informal economy, Jacob Appelbaum, Jaron Lanier, Jason Scott: textfiles.com, Jean Tirole, knowledge economy, laissez-faire capitalism, Larry Wall, Louis Pasteur, means of production, Paul Graham, peer-to-peer, pirate software, popular electronics, RFC: Request For Comment, Richard Stallman, rolodex, Ronald Reagan, Silicon Valley, Silicon Valley startup, slashdot, software patent, software studies, Steve Ballmer, Steven Levy, Ted Nelson, The Hackers Conference, the scientific method, The Structural Transformation of the Public Sphere, web application, web of trust

The expanding use of desktop computers and networking at home, especially for business purposes, guaranteed steady profits for the software industry, and transformed small firms like Microsoft, Oracle, Novell, Cisco, and Adobe into some of the most influential as well as profitable corporations worldwide. In the early 1990s, even with healthy profits, a lucrative market, and well-established intellectual property regulations, the trade associations representing the software industry and other sectors of the knowledge economy were unsatisfied with the legal state of affairs. Trade groups intensified their efforts to secure more changes in intellectual property law largely through international treaties to better serve the interests of the corporations they represented. To achieve this, they integrated four new approaches into their arsenal: they worked with federal law enforcement agencies to strike against “pirates”; they pursued civil court remedies against copyright infringers; they launched moral education campaigns about the evils of piracy (Gillespie 2009); and finally, they pushed aggressively for the inclusion of intellectual property provisions in the multilateral trade treaties of the 1990s, notably the Trade-Related Aspects of Intellectual Property Rights (TRIPS).

Donner, Wendy. 1991. The Liberal Self: John Stuart Mill’s Moral and Political Philosophy. Ithaca, NY: Cornell University Press. Douglas, Mary. 1975. Implicit Meanings: Essays in Anthropology. London: Routledge. Downey, Gary. 1998. The Machine in Me: An Anthropologist Sits among Computer Engineers. London: Routledge. Drahos, Peter, with John Braithwaite. 2002. Information Feudalism: Who Owns the Knowledge Economy? London: Earthscan. Elkin-Koren, Niva. 2006. Exploring Creative Commons: A Skeptical View of a Worthy Pursuit. In The Future of the Public Domain: Identifying the Commons in Information Law, ed. Lucie Guibault and P. Bernt Hugenholtz, 325–46. Leiden, Netherlands: Kluwer Law International. Elliott, Carl. 2003. Better Than Well: American Medicine Meets the American Dream. New York: W. W.


pages: 364 words: 104,697

Were You Born on the Wrong Continent? by Thomas Geoghegan

Albert Einstein, American Society of Civil Engineers: Report Card, banking crisis, Berlin Wall, Bob Geldof, collective bargaining, corporate governance, cross-subsidies, dark matter, David Brooks, declining real wages, deindustrialization, ending welfare as we know it, facts on the ground, Gini coefficient, haute cuisine, income inequality, John Maynard Keynes: Economic Possibilities for our Grandchildren, knowledge economy, knowledge worker, laissez-faire capitalism, low skilled workers, Martin Wolf, McJob, minimum wage unemployment, mittelstand, offshore financial centre, Paul Samuelson, payday loans, pensions crisis, plutocrats, Plutocrats, purchasing power parity, Ralph Waldo Emerson, Robert Gordon, Ronald Reagan: Tear down this wall, Saturday Night Live, Silicon Valley, The Wealth of Nations by Adam Smith, Thorstein Veblen, union organizing, Wolfgang Streeck, women in the workforce

What the laws manage to do in Germany is to keep people together and to hold onto their skills in groups. Co-determination, works councils—in other words, worker control—keep people in groups, rubbing elbows with each other, and all this rubbing of elbows helps build up human capital. Indeed, for some economists, while not applying it to Germany, this is now a fashionable idea. Think of all the buzz about the “knowledge” economy, which, in the world of academic economists, is an inquiry as to how knowledge drives economic growth. For finding out about this new economics, I refer the reader to David Warsh’s 2006 book, Knowledge and the Wealth of Nations, which introduces us to economists trying to untangle the connections between the kind of knowledge that comes from groups and economic growth. German worker control contributes to a group interaction that over time not only builds up but protects a certain amount of human capital, especially in engineering and quality control.

Army strikes union resorts/ex-spas unionization rates in the manufacturing sector wage-setting and works councils youth membership The Germans (Craig) Gerschenkron, Alexander Ghilarducci, Teresa Gibbon, Edward Gibbons, James Gini coefficient Giscard d’Estaing, Valery Glass-Steagall Act globalization and German capitalism and labor market flexibility “Globalization and Income Inequality” (Harjes) “Glühwein Festival” (Hamburg) Goethe-Institute Goldman Sachs Gordon, Robert Gramm, Phil Grass, Günter Green Party and European social democracies German coalition government and Agenda 2010 German coalition government and wages/unemployment German coalition government and welfare German coalition government and works councils Germany green technology Greenspan, Alan Guardian (UK) gun ownership Guns, Germs, and Steel: The Fates of Human Societies (Diamond) Gutteres, António Habermas, Jürgen Halliburton Hamburg, Germany Harjes, Thomas health care spending Heine, Heinrich Heinz (retired German labor leader) Hemingway, Ernest Herodotus Hesbaugh, Ted Hitler, Adolf Hitler’s Willing Executioners (Goldhagen) Hobsbawm, Eric Holocaust hours worked and GDP leisure time and standard-of-living How to Lie with Statistics (Huff) Huff, Darrell human capital Humboldt University (Berlin) IBZ Guest House (Berlin) IG Metall (German union) and CDU’s 2009 victory over SDP foreign-born members Frankfurt May Day parade (2001) works councils youth membership “Incentive for Working Hard” (Conference Board, May 2001) income equality/inequality An Inconvenient Truth (film) International Labor Organization (ILO) International Monetary Fund Iraq war Jesuits and papal social democracy jobs/employment artists big business employees cross-subsidies European social democracies and German unemployment Germany high-skill jobs and high-end precision goods manufacturing workforce and percent of adults holding an associate degree public employees (public-sector civil service jobs) self-employment skilled-labor shortage small business employees types of jobs available unemployment rates for college graduates U.S. Johnson, Diane Judt, Tony Kafka, Franz Kant, Immanuel Keynes, John Maynard Kiel, Germany Kinsley, Michael Knowledge and the Wealth of Nations (Warsh) “knowledge” economies Kohl, Helmut Krise. See financial meltdown of 2008 (the Krise) and German model labor markets (German). See German model of social democracy (labor and industry) labor movement (German). See German model of social democracy (unions and labor movement) Lafontaine, Oskar laissez-faire capitalism Landesbank (State Bank of Hesse) land-use planning Lane, Nathan law students and law education Germany U.S.


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The End of Doom: Environmental Renewal in the Twenty-First Century by Ronald Bailey

3D printing, additive manufacturing, agricultural Revolution, Albert Einstein, Asilomar, autonomous vehicles, business cycle, Cass Sunstein, Climatic Research Unit, Commodity Super-Cycle, conceptual framework, corporate governance, creative destruction, credit crunch, David Attenborough, decarbonisation, dematerialisation, demographic transition, disruptive innovation, diversified portfolio, double helix, energy security, failed state, financial independence, Gary Taubes, hydraulic fracturing, income inequality, Induced demand, Intergovernmental Panel on Climate Change (IPCC), invisible hand, knowledge economy, meta analysis, meta-analysis, Naomi Klein, oil shale / tar sands, oil shock, pattern recognition, peak oil, Peter Calthorpe, phenotype, planetary scale, price stability, profit motive, purchasing power parity, race to the bottom, RAND corporation, rent-seeking, Stewart Brand, Tesla Model S, trade liberalization, University of East Anglia, uranium enrichment, women in the workforce, yield curve

“The true key to the timing of the Industrial Revolution has to be sought in the scientific revolution of the seventeenth century and the Enlightenment movement of the eighteenth century. The key to the Industrial Revolution was technology, technology is knowledge,” explains Northwestern University economic historian Joel Mokyr in his 2002 book The Gifts of Athena: Historical Origins of the Knowledge Economy. Technology is the productive engine that has enabled some happy portion of humanity to escape from our natural state of abject poverty. Correspondingly, Timothy Ferris, author of The Science of Liberty: Democracy, Reason, and the Laws of Nature, points out: “Liberalism and science are methods, not ideologies.” Both embody the freedom to explore and experiment, enabling people to more systematically use trial and error to seek truths about the physical and social worlds.

forbade the chemical manufacturer: Ronald Bailey, “Brain Drain.” Forbes, November 27, 1989, 261. “generic focus on new products”: Gary Marchant et al., Council for Agricultural Science and Technology (CAST). Impact of the Precautionary Principle on Feeding Current and Future Generations. Issue Paper 52. CAST, Ames, Iowa, 2013. “The true key to the timing”: Joel Mokyr, The Gifts of Athena: Historical Origins of the Knowledge Economy. Princeton, NJ: Princeton University Press, 2002. “Liberalism and science”: Timothy Ferris in Michael Shermer, “Democracy’s Laboratory: Are Science and Politics Interrelated?” Scientific American, September 2010. www.scientificamerican.com/article.cfm?id=democracys-laboratory. “Human reason can neither predict”: Friedrich Hayek, The Constitution of Liberty: The Definitive Edition, ed. Ronald Hamowy.


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How Not to Network a Nation: The Uneasy History of the Soviet Internet (Information Policy) by Benjamin Peters

Albert Einstein, American ideology, Andrei Shleifer, Benoit Mandelbrot, bitcoin, Brownian motion, Claude Shannon: information theory, cloud computing, cognitive dissonance, computer age, conceptual framework, continuation of politics by other means, crony capitalism, crowdsourcing, cuban missile crisis, Daniel Kahneman / Amos Tversky, David Graeber, Dissolution of the Soviet Union, Donald Davies, double helix, Drosophila, Francis Fukuyama: the end of history, From Mathematics to the Technologies of Life and Death, hive mind, index card, informal economy, information asymmetry, invisible hand, Jacquard loom, John von Neumann, Kevin Kelly, knowledge economy, knowledge worker, linear programming, mandelbrot fractal, Marshall McLuhan, means of production, Menlo Park, Mikhail Gorbachev, mutually assured destruction, Network effects, Norbert Wiener, packet switching, Pareto efficiency, pattern recognition, Paul Erdős, Peter Thiel, Philip Mirowski, RAND corporation, rent-seeking, road to serfdom, Ronald Coase, scientific mainstream, Steve Jobs, Stewart Brand, stochastic process, technoutopianism, The Structural Transformation of the Public Sphere, transaction costs, Turing machine

In 1965, the American computer businessman Gordon Moore expressed a distinct exponential law that has applied to the microscopic level of the compounding growth of silicon chip production—that the number of transistors on an integrated circuit doubles every two years (2N).51 Both men foresaw in 1962 the emerging information sector or what Austrian American economist Fritz Machlup called “the knowledge economy.” For Kharkevich, the amount of information that a society processes can be expressed as a power law function of the industries it contains, and for Moore, the amount of information that a society processes can be expressed as an exponential function of the transistors on the circuits its industries can produce.52 These sibling laws (Moore’s 2N and Kharkevich’s N2) diverge interestingly in complex systems (when N is larger than 4).

., 59 Kharkevich, Aleksandr, 12, 81, 97–101, 103–105, 120, 174, 180, 185, 216 Kharkevich’s law, 99–100 Khrushchev, Nikita, 33, 45, 57–58, 63–66, 70, 75–76, 83, 85, 87–88, 90, 102–103, 107, 135, 138, 148, 153, 216 Kibernetika, 38 Kiev, 4 Kirilenko, A. P., 161, 171 Kirillin, V. A., 161 Kitov, Anatoly, 12, 35–37, 40, 43–44, 46, 69, 71, 81–91, 103–104, 108, 118, 120, 122, 137–139, 144, 148, 169, 174, 178, 181–185, 191, 198, 216 Knowledge base, 9 Knowledge economy, 99 Kolman, Ernest, 40–44, 216 Kolmogorov, Andrei, 34, 41, 44, 46, 216 Komchamstvo, 114 Komp’yuter, 38 Komsomol Spotlight, 107 Kornai, János, 72–73 Kosygin, Aleksei, 65, 67, 114, 140, 153, 161–166, 216 Kovalev, N. I., 12, 81, 101–103, 105, 178, 180 Kramnik, Vladimir, 176 Krilov, N., 42 Krinitskiy, Nikolai, 177 Kronrod, Alexander, 178 Kukharchuk, A. G., 119 Kuntsevo system, 154 Kurchatov, Igor, 34 Laboratory of Economical Mathematical Methods, 137 Labor Party, British, 199 Lacan, Jacques, 26 Laing, R.


Small Change: Why Business Won't Save the World by Michael Edwards

Bernie Madoff, clean water, corporate governance, corporate social responsibility, different worldview, high net worth, invisible hand, knowledge economy, light touch regulation, Mahatma Gandhi, Mark Shuttleworth, market bubble, microcredit, Nelson Mandela, New Journalism, Ponzi scheme, profit motive, Robert Shiller, Robert Shiller, shareholder value, Silicon Valley, Silicon Valley startup, Social Responsibility of Business Is to Increase Its Profits, The Fortune at the Bottom of the Pyramid, The Spirit Level, The Wealth of Nations by Adam Smith, transaction costs

The best answer to all these questions is for you and me to get involved in a broad-based movement in support of citizen philanthropy, and to become philanthropists ourselves but do so in a way that does not reinforce or replicate the unhealthy patterns of the past; to ask the difficult questions about philanthropy and social change, and not to be brushed aside when we are told that we have no right to question foundations that belong to others; to accept the obligation to hold ourselves accountable to more than a board of close friends and acquaintances; and to see ourselves as partners in a common project of social transformation that places disadvantaged people at the center of their own story. the difference that makes the difference 103 Philanthrocapitalism is the product of a particular era of industrial change that has brought about temporary monopolies in the systems required to operate the knowledge economy, often controlled by individuals who are able to accumulate spectacular amounts of wealth. That same era has produced great inequalities and social dislocations, and experience suggests that such wealth will be politically unsustainable unless much of it is given away, just as in earlier decades when Ford, Rockefeller, and Carnegie found themselves in much the same position. In that sense, philanthrocapitalism is a predictable outcome of today, but I doubt whether this movement and its ideology is a good guide to tomorrow and the future.


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Quiet: The Power of Introverts in a World That Can't Stop Talking by Susan Cain

8-hour work day, Albert Einstein, Asperger Syndrome, Bill Gates: Altair 8800, call centre, crowdsourcing, David Brooks, delayed gratification, deliberate practice, game design, hive mind, index card, indoor plumbing, Isaac Newton, knowledge economy, knowledge worker, longitudinal study, Mahatma Gandhi, mass immigration, Menlo Park, meta analysis, meta-analysis, Mikhail Gorbachev, Nelson Mandela, new economy, popular electronics, Ralph Waldo Emerson, ride hailing / ride sharing, Rosa Parks, selective serotonin reuptake inhibitor (SSRI), shareholder value, Silicon Valley, Steve Jobs, Steve Wozniak, telemarketer, The Wisdom of Crowds, traveling salesman, twin studies, Walter Mischel, web application, white flight

It’s the story of a contemporary phenomenon that I call the New Groupthink—a phenomenon that has the potential to stifle productivity at work and to deprive schoolchildren of the skills they’ll need to achieve excellence in an increasingly competitive world. The New Groupthink elevates teamwork above all else. It insists that creativity and intellectual achievement come from a gregarious place. It has many powerful advocates. “Innovation—the heart of the knowledge economy—is fundamentally social,” writes the prominent journalist Malcolm Gladwell. “None of us is as smart as all of us,” declares the organizational consultant Warren Bennis, in his book Organizing Genius, whose opening chapter heralds the rise of the “Great Group” and “The End of the Great Man.” “Many jobs that we regard as the province of a single mind actually require a crowd,” muses Clay Shirky in his influential book Here Comes Everybody.

It’s also possible, as the psychologist Uwe Wolfradt suggests, that the relationship between introversion and creativity is “discernable at a higher level of creativity only.” (Uwe Wolfradt, “Individual Differences in Creativity: Personality, Story Writing, and Hobbies,” European Journal of Personality 15, no. 4, [July/August 2001]: 297–310.) 5. Hans Eysenck: Hans J. Eysenck, Genius: The Natural History of Creativity (New York: Cambridge University Press, 1995). 6. “Innovation—the heart of the knowledge economy”: Malcolm Gladwell, “Why Your Bosses Want to Turn Your New Office into Greenwich Village,” The New Yorker, December 11, 2000. 7. “None of us is as smart as all of us”: Warren Bennis, Organizing Genius: The Secrets of Creative Collaboration (New York: Basic Books, 1997). 8. “Michelangelo had assistants”: Clay Shirky, Here Comes Everybody: The Power of Organizing Without Organizations (New York: Penguin, 2008). 9. organize workforces into teams: Steve Koslowski and Daniel Ilgen, “Enhancing the Effectiveness of Work Groups and Teams,” Psychological Science in the Public Interest 7, no. 3 (2006): 77–124. 10.


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Philanthrocapitalism by Matthew Bishop, Michael Green, Bill Clinton

Albert Einstein, anti-communist, barriers to entry, battle of ideas, Bernie Madoff, Bob Geldof, Bonfire of the Vanities, business process, business process outsourcing, Charles Lindbergh, clean water, cleantech, corporate governance, corporate social responsibility, Dava Sobel, David Ricardo: comparative advantage, don't be evil, family office, financial innovation, full employment, global pandemic, global village, God and Mammon, Hernando de Soto, high net worth, Intergovernmental Panel on Climate Change (IPCC), invisible hand, James Dyson, John Harrison: Longitude, joint-stock company, knowledge economy, knowledge worker, Live Aid, lone genius, Marc Andreessen, market bubble, mass affluent, microcredit, Mikhail Gorbachev, Nelson Mandela, new economy, offshore financial centre, old-boy network, peer-to-peer lending, performance metric, Peter Singer: altruism, plutocrats, Plutocrats, profit maximization, profit motive, Richard Feynman, risk tolerance, risk-adjusted returns, Ronald Coase, Ronald Reagan, shareholder value, Silicon Valley, Slavoj Žižek, South Sea Bubble, sovereign wealth fund, stem cell, Steve Jobs, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, Thomas Malthus, Thorstein Veblen, trade liberalization, transaction costs, trickle-down economics, wealth creators, winner-take-all economy, working poor, World Values Survey, X Prize

He also deserves to be remembered as the original guru of philanthrocapitalism. Drucker wrote thirty-nine books, among them The Concept of the Corporation, The Practice of Management, The Future of Industrial Man, and Post-Capitalist Society. An advocate of “scientific management” and “management by objective,” he made famous the term “knowledge worker,” reflecting his fascination with the growing importance in the modern “knowledge economy” of people who work with their minds, rather than their hands. In his later years, the Austrian-born Drucker became increasingly focused on the nonprofit sector, which he saw as having a crucial role in building community and gluing society together, yet needing better management. As well as being one of the first writers to spot the rise of social entrepreneurship, he worried about the lack of ethical leadership provided by many top business executives and other wealthy people.

More fundamentally, the success of Microsoft has clearly been primarily based on entrepreneurial creativity, and certainly not the monopolization of scarce preexisting assets, such as oil. Gates has not exploited his workers—many of whom have become millionaires—let alone put their lives in peril. While Microsoft may have enjoyed some monopoly power, it has always been exposed to dynamic competitors, from Apple to Google, which meant it had to keep innovating, reducing prices, and generally seeking to please its customers. The rise of the knowledge economy means that a growing number of the new rich can plausibly claim to have made their fortunes without exploiting anyone—the Google guys being perhaps the example par excellence. In principle, that ought to make it easier for society to applaud them and any philanthropy they do. However, not all of today’s new rich can brush off s critique so easily. Hernando de Soto, the Peruvian economist whose bestseller The Mystery of Capital is a powerful call for capitalism to be redesigned to better include the poor, contrasts the form of capitalism in which Gates thrived with what passes for capitalism in many poor or badly run countries.


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The Economics of Enough: How to Run the Economy as if the Future Matters by Diane Coyle

"Robert Solow", accounting loophole / creative accounting, affirmative action, bank run, banking crisis, Berlin Wall, bonus culture, Branko Milanovic, BRICs, business cycle, call centre, Cass Sunstein, central bank independence, collapse of Lehman Brothers, conceptual framework, corporate governance, correlation does not imply causation, Credit Default Swap, deindustrialization, demographic transition, Diane Coyle, different worldview, disintermediation, Edward Glaeser, endogenous growth, Eugene Fama: efficient market hypothesis, experimental economics, Fall of the Berlin Wall, Financial Instability Hypothesis, Francis Fukuyama: the end of history, George Akerlof, Gini coefficient, global supply chain, Gordon Gekko, greed is good, happiness index / gross national happiness, hedonic treadmill, Hyman Minsky, If something cannot go on forever, it will stop - Herbert Stein's Law, illegal immigration, income inequality, income per capita, industrial cluster, information asymmetry, intangible asset, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Jane Jacobs, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, knowledge economy, light touch regulation, low skilled workers, market bubble, market design, market fundamentalism, megacity, Network effects, new economy, night-watchman state, Northern Rock, oil shock, Pareto efficiency, principal–agent problem, profit motive, purchasing power parity, railway mania, rising living standards, Ronald Reagan, selective serotonin reuptake inhibitor (SSRI), Silicon Valley, South Sea Bubble, Steven Pinker, The Design of Experiments, The Fortune at the Bottom of the Pyramid, The Market for Lemons, The Myth of the Rational Market, The Spirit Level, transaction costs, transfer pricing, tulip mania, ultimatum game, University of East Anglia, web application, web of trust, winner-take-all economy, World Values Survey, zero-sum game

We know we’re going to need more of them. The growing number of pensioners will need carers, nurses, and doctors. Advances in medical technology mean our expectations of health care are constantly on the increase, and we expect the health service to provide us with the latest techniques and drugs. Similarly, expectations of the education system are rising in what is so often described as the “knowledge economy.” More young people are staying in higher education, and we expect standards to continue improving at every level. It doesn’t feel like an option not to consume more and better health and education services as time goes by. Figure 12. Who will care? Yet one consequence of the way services like these are eating up a rising share of personal and government budgets is the employment of a growing army of low-paid and low-status workers in these sectors, sometimes illegal immigrants.

See distribution Inconvenient Truth, An (Gore), 60 Index of Sustainable Economic Welfare (ISEW), 36 India, 212; emerging middle class of, 125; fairness and, 122–26, 133; inequality and, 125–26; nature and, 63, 65, 81; posterity and, 108; purchasing power parity (PPP) and, 306n19; Satyam and, 146; trust and, 146, 149, 163, 172; wage penalties and, 133; World Bank influence and, 163 Industrial Revolution, 27, 149, 290, 297 inequality, 4–5, 11, 17, 84, 306n19, 308n34; Bush and, 127–28; consequences for growth, 135–36; decline in trust and, 139–44; dramatic increase in, 126–27, 131; extraction ratio for, 124; fairness and, 114–16, 122–43; fractal character of, 134; Gini coefficient and, 126; globalization and, 122–24, 127, 131, 155; happiness and, 25, 36, 42, 44, 53; high salaries and, 130, 143–44, 193, 223, 277–78, 286, 296; historical perspective on, 126–27; institutions and, 116, 127–31, 141; measurement of, 126; policy recommendations for, 267, 276, 295–97; poverty and, 43, 55–56, 100, 125, 128, 138, 142, 168–69, 261, 267; reduction of, 276–77; Republican administrations and, 127–28; social corrosiveness of, 139–44; structural causes of, 131–35; superstar effect and, 134; taxes and, 115–16, 123, 127–28, 131, 135–36; trends in, 125–30; unequal countries and, 124–30; United Kingdom and, 125–30; United States and, 122, 125–31, 135, 276; values and, 223–24, 234–36; well-being and, 137–43; within/between countries, 123–24 inflation, 37, 43, 61, 89, 102–5, 110–11, 189, 281, 305n17 information and communication technology (ICT), 6–7, 15, 17; data explosion and, 205, 291; decreased cost of, 254; fairness and, 133; happiness and, 24–25; institutional impacts of, 252–53; structural effects of, 194–98; trust and, 156–60, 165–67, 174 innovation, 6–7, 12; consumer electronics and, 36–37; fairness and, 121, 134; growth and, 271–73, 281, 290–92; happiness and, 37; institutions and, 244, 258, 263, 290–91; measurement and, 183, 196, 201–8, 273–74; musicians and, 195; nature and, 69–70, 81; policy recommendations for, 290–91; posterity and, 102; statistics and, 201–7; trust and, 157; values and, 210, 216, 220, 236 In Praise of Slowness, 27 institutions, 18; anomie and, 48, 51; balance and, 12–17; blindness of to financial crises, 87–88; broad framework for, 249–52; capitalism and, 240; consumption and, 254, 263; decentralization and, 246; democracy and, 242–43, 251–52, 262; downsizing and, 175, 246, 255; economies of scale and, 253–58; efficiency and, 245–46, 254–55, 261; extinction crisis and, 288; face-to-face contact and, 7, 147, 165–68; failures of, 240–44, 257, 262–63, 267, 289–90; fall of communism and, 226, 239–40, 252; freedom and, 244, 262; globalization and, 244; governance and, 242, 247, 255–58, 261–62; government and, 240–63; growth and, 258, 261, 263; health care and, 247, 252–53; high salaries and, 130, 143–44, 193, 223, 277–78, 286, 296; impact of new technologies and, 252–54; importance of, 261–63; inequality and, 116, 127–31, 141; innovation and, 244, 258, 263, 290–91; legitimacy and, 8, 16, 50, 66, 68–69, 162–63, 213, 226, 269, 274, 292, 296–97; managerialism and, 259; morals and, 254; nature and, 66–69, 82–84; New Public Management and, 245–47; outsourcing and, 159, 161, 175, 219, 287; policy recommendations for, 269, 284–91; politics and, 239–48, 251, 256–63; pollution and, 15, 35, 228; productivity and, 244–47, 257, 263; public choice theory and, 242–43; public deliberation and, 258–60; reform and, 245–48, 256, 285, 288–91, 296–97; responsibility to posterity and, 296; shareholders and, 145, 248, 257–58, 277; statistics and, 245; technology and, 244–46, 251–54, 257–63 (see also technology); values and, 240–42, 246–47, 258–60 intangible assets: measurement and, 199–201, 204–6; satellite accounts and, 38, 81, 204–6, 271; social capital and, 149–52, 157, 161, 199–201 InterAcademy Council, 66–67 interbank market, 1–2 Intergovernmental Panel on Climate Change (IPCC), 59, 66–69, 82, 297 International Monetary Fund (IMF), 90, 101–3, 111, 162–64, 176, 211, 287, 297 International Price Comparison, 124 International Telecommunications Union, 219 Internet, 155, 195, 245, 260, 273, 287–89, 291, 296 invisible hand, 209 iPods, 195 Ipsos Mori poll, 66, 247 Ireland, 172 Iron Curtain, 183, 239, 252 Italy, 95, 97–98, 146, 152 Jackson, Michael, 198 Japan, 42; debt of, 102; equal income distribution in, 125; fairness and, 125–26, 140–41; inequality and, 126; lost decade of, 102; posterity and, 91–92, 95, 97–98, 102; savings rates in, 280; trust and, 169, 175; voter turnout and, 175 Jazz Age, 127 Jefferson, Thomas, 184, 253–54 Johns, Helen, 41 Johnson, Simon, 256–57 Johnson, Steven, 187 Justice (Sandel), 237 Kahneman, Daniel, 215 Kamarck, Elaine, 247–48 Kay, John, 139, 245–46, 257 Kennedy School of Government, 247 Keynes, John Maynard, 101, 183–84, 190 Kleinwort, Dresdner, 87 knowledge economy, 191 Kobayashi, Keiichiro, 102 Korea, 126 Krugman, Paul, 100–103, 127–29, 232, 282 Kyoto Protocol, 62–64 labor: absorbing work and, 10, 48–49; call centers and, 131, 133, 161; creativity and, 166–68, 205–7; downsizing and, 175, 246, 255; global cities and, 165–70; globalization and, 131, 149 (see also globalization); human capital and, 81, 203–4, 282; measurement and, 189–99; migration and, 108–10, 172; outsourcing and, 159, 161, 175, 219, 287; pensions and, 4, 25, 85–86, 90, 92–100, 103–7, 111–13, 174–76, 191, 203, 243, 269–71, 275, 280, 286, 289–90, 293; Protestant work ethic and, 13–14, 236; retirement age and, 94, 97–99, 106–7, 112; skilled, 132–33, 159, 166–67, 276; specialization and, 160–61; technology and, 131–33; unemployment and, 3, 10, 43, 51, 56, 89, 107, 169, 207, 212–13, 243; unions and, 15, 51, 224, 249; unskilled, 132–33, 158, 172, 193; well-being and, 137–39; Whitehall Studies and, 139 lack of control, 47, 138–39 Lawson, Neal, 26 Layard, Richard, 31, 39–40, 43 Lehman Brothers, 1, 85, 87–88, 145, 211, 275–76 Leipzig marches, 239 Leviathan (Hobbes), 114 light bulbs, 59–61 Linux, 205 Lipsky, John, 102, 111 List, John, 117 literacy, 36 Live Nation, 197 living standards, 78–79, 106, 113, 136, 151, 162, 190, 194, 267 lobbyists, 15, 71, 247, 257, 276, 285, 289, 296 Lolapaloozza, 197 Louis Vuitton, 150 Luxury Fever (Frank), 40 Mackenzie, Donald, 221 Madonna, 194 Malthusianism, 95 Mama Group, 197 managerial competence, 2, 16, 150, 209, 259 Manzi, Jim, 231–32 Mao Zedong, 10 markets: asymmetric information and, 17, 186, 214, 219–20, 229, 248, 254, 262–63; black, 225; boom–bust cycles and, 4, 22, 28, 93, 102, 106–9, 136–37, 145, 147, 213, 222–23, 233, 277, 280, 283; capitalism and, 182, 230–38 (see also capitalism); culture and, 230–38; declining population and, 86, 89–90, 95–99, 103, 113; democracy and, 230–38; deregulation and, 7, 212; evidence–based policy and, 233–34; exchange advantage and, 214; externalities and, 15, 70, 80, 211, 228–29, 249, 254; failures of, 226–30, 240–44, 257, 262–63, 267, 289–90; Fama hypothesis and, 221–22; flaws of, 215–16; fractal character of, 134; free market model and, 14, 121, 129, 182–83, 210–11, 218–24, 232, 240, 243, 251; fundamentalism for, 213; gift economy and, 205–7; interbank, 1–2; international trade and, 110, 148, 159, 163; invisible hand and, 209; mathematical models of, 214; merits of, 211–17; missing, 229; moral, 210, 213, 220–25, 230–33; music, 194–98; network effects and, 253, 258; options, 222; as organizing economy, 218; performativity and, 224–25; Protestant work ethic and, 13–14, 236; public choice theory and, 220, 242–45; public domain and, 196; rational calculation and, 214–15; satellite accounts and, 81; shorting of, 86; social, 217–20; stability issues and, 2–4, 25, 70, 101, 124, 135, 140–41, 174, 176, 218, 296; trilemma of, 230–38; values and, 209–10 (see also values); winner take all, 134 Marx, Karl, 14, 28, 131, 221 McDonalds, 27 McKitrick, Ross, 68 Mean Fiddler Group, 197 Measuring Australia’s Progress, 274 measurement: asymmetric information and, 17, 186, 214, 219–20, 229, 248, 254, 262–63; Australian model and, 271, 274; balance and, 12–17; bankers and, 193, 200; capitalism and, 182; challenges of, 188–93; consumption and, 181–82, 198; distribution and, 191–99; evidence–based policy and, 233–34; GDP, 10 (see also gross domestic product [GDP]); Gini coefficient and, 126; governance and, 183, 186; government and, 182–88, 191, 193, 196, 202–3, 206; growth and, 181–85, 188–90, 194, 201–5, 208; happiness and, 35–39; health issues and, 181, 188–93, 200, 207; hedonic techniques and, 274; importance of, 184–85, 187–89; of inequality, 126; innovation and, 183, 196, 201–8, 273–74; intangible assets and, 199–201, 204–6; labor and, 189–99; less publication of, 271–72; living standards and, 13, 65, 78–79, 106, 113, 136, 139, 151, 162, 190, 194, 267; Measuring Progress exercise and, 294; policy recommendations for, 270–74; politics and, 182–84, 191, 193, 203, 208; productivity and, 189–90, 194, 199–201, 206–7; resources for, 294; social capital and, 154; statistics and, 187–89, 198–208; technology and, 181–85, 188–91, 194–201, 204–6; time constraints and, 204–7; trust and, 152–57; uncertainty of accuracy and, 273; unmeasurable entities and, 187; values and, 209, 212–13, 224 Medicare, 93–94 Meek, James, 26 metrification, 184 Metropolitan Museum of Art symposium, 100–101 Mexico, 226 Microsoft, 253, 258 migration, 108–10, 172 Milanovic, Branko, 123–24 Mill, John Stuart, 31–32 Minsky, Hyman, 226 monopolies, 196, 245, 252, 254 Montreal Protocol, 59 Moore’s Law, 156 morals: bankers and, 90, 277–78; criticism of poor and, 142; fairness and, 116–20, 127, 131, 142, 144; greed and, 221 (see also greed); growth and, 275–76, 279, 293, 295, 297; happiness and, 22, 26, 30, 34, 43, 48–49; institutions and, 254; nature and, 55, 70–72, 76, 78; performativity and, 224–25; posterity and, 90; trust and, 149, 174; values and, 185, 210, 213, 220–25, 230–33 MP3 players, 195 music, 11, 194–98, 204, 208, 229, 254 nature: Brundtlandt Report and, 77; carbon prices and, 70–71; climate change and, 57–84 (see also climate change); consumption and, 58–61, 71–76, 79, 82; Copenhagen summit and, 62, 64–65, 68, 162, 292; democracy and, 61, 66, 68; efficiency and, 61–62, 69, 82; environmentalists and, 29, 55–59, 69–70, 99; freedom and, 79; future and, 75–83; global warming and, 57, 64, 66, 68; government and, 58–62, 65–71, 82–84; greenhouse gases and, 23, 29, 35, 59, 61–63, 68, 70–71, 83; green lifestyle and, 55, 61, 76, 289, 293; gross domestic product (GDP) and, 56–60, 75–76, 80–82; growth and, 56–59, 62–66, 69–72, 76, 79–82; happiness and, 56–59, 75–76, 80–84; health issues and, 81; hybrid cars and, 61; innovation and, 69–70, 81; institutions and, 66–69, 82–84; InterAcademy Council and, 66–67; Intergovernmental Panel on Climate Change (IPCC) and, 59, 66–69, 82, 297; Kyoto Protocol and, 62–64; light bulbs and, 59–61; Montreal Protocol and, 59; morals and, 55, 70–72, 76, 78; natural capital and, 79–81, 151, 271, 273; philosophy and, 69–70; plastic and, 61; politics and, 57–71, 75, 77, 82–84; population issues and, 99; productivity and, 78, 82; satellite accounts and, 81; self-interest and, 65; squandered natural wealth and, 181–82; statistics and, 66, 81–82; stewardship and, 78, 80; technology and, 69–72, 76–77, 80, 84; TEEB project and, 78–79 network effects, 253, 258 New Deal, 129 New Economics Foundation, 36 New Public Management theory, 245–47 Newton, Isaac, 214–15 Niger, 122 Nobel Prize, 18, 60, 102, 215, 220, 236, 250, 261 noise, 47 No Logo (Wolf), 34 Nordhaus, William, 37, 70, 73, 156 North, Douglass, 261 Northern Rock, 1, 146 Obama, Barack, 62–63, 87, 173, 260, 285, 288 Oberholzer-Gee, Felix, 197 obesity, 137–38, 279 Office for National Statistics, 274 Olson, Mancur, 242 opinion formers, 61 option pricing theory, 222 Orchestra of the Age of Enlightenment, 194 Organization for Economic Cooperation and Development (OECD), 4, 11, 201, 305n11; happiness and, 38, 52; inequality in, 125–26; nature and, 60, 68; policy recommendations for, 273–74, 281, 283, 287, 291, 293; posterity and, 87, 93–94, 97–99, 112; trust and, 160, 171; values and, 212, 243–44, 246 organized crime, 277 Ormerod, Paul, 41 Orwell, George, 56 Ostrom, Elinor, 17, 220, 250–51, 261–63 Pakistan, 81, 226 Paradox of Choice, The (Schwartz), 10–11, 40 Parmalat, 146 partisanship, 2, 16, 101, 128, 269, 285 Peake, Mervyn, 9 pensions, 4, 25, 243; burden of, 92–95; Chinese savings and, 94; measurement and, 191, 203; policy recommendations for, 269–71, 275, 280, 286, 289–90, 293; posterity and, 85–86, 90–100, 103–7, 111–13; retirement age and, 92, 97–99, 106–7, 112; trust and, 174–76 performativity, 224–25 Persson, Torsten, 136 Pew surveys, 140 philanthropy, 33 philosophy, 16; fairness and, 114–15, 123; freedom and, 237; happiness and, 21, 27, 31–32, 49–50; nature and, 69–70; utilitarian, 31–32, 78, 237; values and, 237–39 Pickett, Kate, 137–40 Piereson, James, 183 Piketty, Thomas, 127, 129 Pimco, 287 Pinch (Willetts), 98–99 Pinker, Steven, 118, 305n4 Poland, 239 police service, 5, 35, 163, 193, 200, 247 policy: Commission on the Measurement of Economic Performance and Social Progress and, 37–38; deregulation and, 7, 212; errors in standard, 8; evidence–based, 233–34; first ten steps for, 294–98; future and, 75–83, 291–98; Intergovernmental Panel on Climate Change (IPCC) and, 59, 66–69, 82, 297; legitimacy and, 8, 16, 50, 66, 68–69, 162–63, 213, 226, 269, 274, 292, 296–97; measurement and, 187–89; OECD countries and, 4, 11, 38, 52, 60, 68, 87, 93–94, 97–99, 112, 125–26, 160, 171, 201, 212, 243–44, 246, 273–74, 281, 283, 287, 291, 293; population growth and, 95–100; practical recommendations for, 269–91; reform and, 8, 82–83, 85 (see also reform); stability issues and, 2–4, 25, 70, 101, 124, 135, 140–41, 174, 176, 218, 296; stimulus packages and, 91, 100–103, 111; sustainability and, 57 (see also sustainability); tradition and, 9; transparency and, 83, 164, 288, 296; trilemma of, 13–14, 230–36, 275; World Forum on Statistics, Knowledge, and Policy and, 38 political correctness, 173, 231 political economy, 27–28 pollution, 15, 35, 228 Population Bomb, The (Ehrlich), 70 population issues: aging, 4, 95–100, 106, 109, 206, 267, 280, 287, 296; baby boomers and, 4, 106, 109; declining population and, 86, 89–90, 95–99, 103, 113; demographic implosion and, 95–100; environmentalists and, 99; global cities and, 165–70; Malthusianism and, 95; migration and, 108–10; one-child policy and, 95–96; posterity and, 89–90, 94–95, 105–6, 109, 112–13; retirement age and, 94, 97–99, 106–7, 112 Porter, Roy, 184 Portugal, 126, 287 posterity, 298; aging population and, 89–90, 94–95, 105–6, 109, 112–13; bankers and, 85–91, 94, 99–102; consumption and, 86, 104–6, 112–13; current generation’s debt to, 90–92, 112–13; declining population and, 86, 89–90, 95–99, 103, 113; default and, 110–12; democracy and, 106; demographic implosion and, 95–100; freedom of investors and, 108; globalization and, 108; government and, 84–95, 98–113; gross domestic product (GDP) and, 91–94, 98–99, 103, 108, 111; growth and, 90, 95, 97, 99, 102, 105–8, 111; health issues and, 89, 93–94, 97–99, 103, 106, 111–13; higher retirement age and, 94–98, 106–7, 112; innovation and, 102; institutional responsibility and, 296; less leisure and, 106–7; Medicare and, 93–94; migration and, 108–9; morals and, 90; pensions and, 85–86, 90, 92–100, 103–7, 111–13; politics and, 86–94, 98, 101–8, 111–13; poverty and, 100; productivity and, 88, 97–99, 102, 105–8, 112; public debt and, 85–86; reform and, 85–86, 98, 111–12; savings and, 86–87, 94, 98, 100–101, 105–8, 112; Social Security and, 93–94; social welfare and, 85, 100, 112; sustainability and, 79 (see also sustainability); taxpayer burden and, 85–91, 94, 99, 103–5; technology and, 107; welfare burden and, 92–95 poverty, 261, 267; desire to spend and, 55–56; fairness and, 125, 128, 138, 142; happiness and, 43; posterity and, 100; trust and, 168–69 printing press, 7 productivity, 16; balance and, 268, 271, 273–76, 281, 287; bureaucratic obstacles to, 285–86; Commission on the Measurement of Economic Performance and Social Progress and, 37–38; fairness and, 131, 135; globalization and, 131 (see also globalization); governance and, 173–77; happiness and, 27, 38, 42, 51; improvements in, 107–8; institutions and, 244–47, 257, 263; measurement and, 189–90, 194, 199–201, 206–7; nature and, 78, 82; posterity and, 88, 97–99, 102, 105–8, 112; public services and, 257; Soviet method and, 246; technology and, 107–8, 157–59, 268; trilemma of, 13–14, 230–36, 275; trust and, 156–59, 162, 166–67, 170, 174 property rights, 80, 174, 195–96, 261 Protestant work ethic, 13–14, 236 psychology: altruism and, 118–22; anomie and, 48, 51; anxiety and, 1, 25, 47–48, 136–38, 149, 174; behavioral economics and, 116–17, 121, 282; choice and, 10–11; coherence and, 49; commuting and, 47; conflict in relationships and, 47; Easterlin Paradox and, 39–44; face-to-face contact and, 7, 147, 165–68; freedom and, 237 (see also freedom); game theory and, 116–18, 121–22; gift economy and, 205–7; greed and, 26, 34, 54, 88, 129, 150, 221–23, 248, 277–79; happiness and, 9–12, 44–50 (see also happiness); lack of control and, 47; noise and, 47; paradox of prosperity and, 174; positive, 9–10, 49–50, 303n51; public choice theory and, 220, 242–45; rational choice theory and, 214–15; shame and, 47; Slow Movement and, 27–28, 205; thrift education and, 283–84, 294–95; well-being and, 137–43 Ptolemy, 274 public choice theory, 220, 242–45 Public Domain, The (Boyle), 196 public goods, 185–86, 190, 199, 211, 229, 249, 261 purchasing power parity (PPP), 306n19 Putnam, Robert, 140–41, 152–54 Quiet Coup, The (Johnson), 256–57 Radio Corporation of America (RCA), 195 Rajan, Raghuram, 136 Rank, Robert, 40 rational choice theory, 214–15 Rawls, John, 31 Reagan, Ronald, 93, 121, 127, 211, 240, 243, 247–48 recession, 9, 11–12, 275; happiness and, 22, 24, 41, 54; nature and, 55–56, 66; plethora of books following, 55; posterity and, 85, 88, 91–93, 100–101, 108, 110; recovery from, 3, 103; trust and, 182; values and, 209–10, 213, 222 reciprocal altruism, 118–22 reform, 8; benchmark for, 218; bankers and, 277–79; bonus taxes and, 278; collective assent to, 269; courage needed for, 203; first ten steps for, 294–98; health care, 285; improving statistics and, 271; institutions and, 245–48, 256, 285, 288–91, 296–97; nature and, 82–85; New Public Management and, 245–46; politics and, 287–88; posterity and, 98, 111–12; public sector, 288–90; trust and, 162–64, 176–77; values and, 218, 233, 275–78, 295 Reinhardt, Carmen, 111 religion, 10; happiness and, 32–33, 43, 50; nature and, 76, 78; Protestant work ethic and, 13–14, 236; trust and, 147 Renaissance, 7 retirement age, 94, 97–99, 106–7, 112 revalorization, 275 Road to Wigan Pier, The (Orwell), 56 Rodrik, Dani, 136 Rogoff, Kenneth, 111 Romantic Economist, The (Bronk), 28 Romanticism, 27 Rothschilds, 147 Rousseau, Jean–Jacques, 114 Royal Bank of Scotland, 146 runs, 1 Ruskin, John, 27–28 Russia, 97–98, 123; Cold War and, 93, 112, 147, 209, 213, 239; Iron Curtain and, 183, 239, 252; production targets and, 246; as Soviet Union, 228, 246 Saez, Emmanuel, 127, 129 salaries: high, 130, 143–44, 193, 223, 277–78, 286, 296; measurement and, 191–99; paradox of, 193; superstar effect and, 134; technology and, 2, 89 Sandel, Michael, 224–25, 237 Sarkozy, Nicolas, 37, 202, 274 satellite accounts, 38, 81, 204–6, 271 Satyam, 146 savings, 1, 280–82, 293; China and, 87, 94, 100, 108; necessary increasing of, 105–6; negative, 105; policy recommendations for, 280–84; posterity and, 86–87, 94, 98, 100–101, 105, 108, 112; thrift education and, 283–84, 294–95 savings clubs, 283 Schumpeter, Joseph, 14 Schwartz, Barry, 10–11, 40 Seabright, Paul, 148–49, 170, 213–14, 228 self-interest: fairness and, 114–22; greed and, 26, 34, 54, 88, 129, 150, 221–23, 248, 277–79; moral sentiments and, 119–20, 142, 221; nature and, 65; reciprocal altruism and, 118–22; values and, 214, 221 Selfish Gene, The (Dawkins), 118 Sen, Amartya, 18, 37, 43, 82, 202, 237, 274, 310n25 shame, 47 shareholders, 88, 145, 248, 257–58, 277 Silicon Valley, 166 Simon, Herbert, 249–50, 254, 261, 270 Simon, Julian, 70 Singapore, 126 Sloan School, 256 Slow Food, 27 Slow Movement, 27–28, 205 smart cards, 252–53 Smith, Adam, 119–20, 209, 221, 255 Smith, Vernon, 215 social capital, 8, 12, 17; definition of, 152–53; fairness and, 116, 121, 139–43; intangible assets and, 149–52, 157, 161, 199–201; measurement of, 154, 185; policy recommendations for, 267, 271, 273, 276; Putnam on, 152–54; trust and, 5, 151–57, 168–74, 177; values and, 223–25, 231, 257 social justice, 31, 43, 53, 65, 123, 164, 224, 237, 286 Social Limits to Growth, The (Hirsch), 190, 231 social markets, 217–20 social networks, 260, 270, 288–89 Social Security, 93–94 social welfare.


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Why Europe Will Run the 21st Century by Mark Leonard

Berlin Wall, Celtic Tiger, continuous integration, cuban missile crisis, different worldview, European colonialism, facts on the ground, failed state, global reserve currency, invisible hand, knowledge economy, mass immigration, non-tariff barriers, North Sea oil, one-China policy, Panopticon Jeremy Bentham, pension reform, reserve currency, Robert Gordon, shareholder value, South China Sea, The Wealth of Nations by Adam Smith, Thomas Malthus, trade liberalization, Washington Consensus

All European countries today are reforming their economies for an age of economic interdependence, while trying to keep the best features of the European social model intact. They could be said to converging around a ‘Stockholm Consensus’, as the Swedish state has pioneered so many of these new approaches. The ‘Stockholm Consensus’ amounts to nothing less than a new social contract in which a strong and flexible state underpins an innovative, open, knowledge economy. This contract means that the state provides the resources for educating its citizens, treating their illnesses, providing childcare so they can work, and integration lessons for newcomers. In exchange, citizens take training, are more flexible, and newcomers integrate themselves. The ‘Stockholm Consensus’ stands in opposition to much of the waste of the ‘Washington Consensus’: low levels of inequality allow Europeans to save on crime and prison; energy-efficient economies protect them from hikes in oil prices; the social contract gives people leisure and a helping hand back into work if they lose their jobs; while the European single market and the euro will allow European countries to benefit from economies of scale in a global market without giving up on the adaptability and dynamism that come from being small.


pages: 484 words: 131,168

The Big Sort: Why the Clustering of Like-Minded America Is Tearing Us Apart by Bill Bishop, Robert G. Cushing

"Robert Solow", 1960s counterculture, affirmative action, American Legislative Exchange Council, assortative mating, big-box store, blue-collar work, Cass Sunstein, citizen journalism, cognitive dissonance, David Brooks, demographic transition, desegregation, Edward Glaeser, immigration reform, income inequality, industrial cluster, Jane Jacobs, knowledge economy, longitudinal study, mass immigration, meta analysis, meta-analysis, Milgram experiment, music of the spheres, New Urbanism, post-industrial society, post-materialism, Ralph Nader, Richard Florida, Ronald Reagan, Silicon Valley, stem cell, Steve Jobs, superstar cities, The Death and Life of Great American Cities, union organizing, War on Poverty, white flight, World Values Survey

Berry, "The Divergence of Human Capital Levels Across Cities" (Harvard Institute of Economic Research Discussion Paper 2091, August 2005), p. 10, http://www.economics.harvard.edu/hier/2005papers/HIER2091.pdf. 4. Richard Florida, "The World Is Spiky"Atlantic, October 2005, pp. 48–49. 5. Glaeser and Berry, "The Divergence of Human Capital," pp. 10–11. 6. Joe Cortright, "The Young and Restless in a Knowledge Economy" (report prepared for CEOs for Cities, December 2005), p. 30. 7. Edward Glaeser and Jesse M. Shapiro, "City Growth and the 2000 Census: Which Places Grew, and Why" (Center of Urban and Metropolitan Policy, Brookings Institution, May 2001), p. 9, http://www.brookings.edu/reports/2001/05demographics_edward-glaeser-and-jesse-m—shapiro.aspx. 8. Glaeser and Berry, "The Divergence of Human Capital," pp. 2–11.

London: Free Press of Glencoe, 1964. Cortright, Joe. "The Economic Importance of Being Different: Regional Variations in Taste, Increasing Returns and the Dynamics of Development." Economic Development Quarterly 16, no. 1 (February 2002): 3–16. ———. "New Growth Theory, Technology and Learning: A Practitioner's Guide." Paper prepared for the Economic Development Administration, 2001. ———. "The Young and Restless in a Knowledge Economy." Report prepared for CEOs for Cities, December 2005. Crow, Paul A., Jr. "Eugene Carson Blake: Apostle of Christian Unity." Ecumenical Review 21 (1986): 228–36. Dahl, Robert A. Democracy in the United States Promise and Performance 2nd ed. Chicago: Rand McNally, 1972. Dalton, Russell J. "The Social Transformation of Trust in Government." International Review of Sociology 15, no. 1 (March 2005): 133–54.


Innovation and Its Enemies by Calestous Juma

3D printing, additive manufacturing, agricultural Revolution, Asilomar, Asilomar Conference on Recombinant DNA, autonomous vehicles, big-box store, business cycle, Cass Sunstein, clean water, collective bargaining, colonial rule, computer age, creative destruction, Daniel Kahneman / Amos Tversky, deskilling, disruptive innovation, energy transition, Erik Brynjolfsson, financial innovation, global value chain, Honoré de Balzac, illegal immigration, Intergovernmental Panel on Climate Change (IPCC), Internet of things, invention of movable type, invention of the printing press, Joseph Schumpeter, knowledge economy, loss aversion, Marc Andreessen, means of production, Menlo Park, mobile money, New Urbanism, Nicholas Carr, pensions crisis, phenotype, Ray Kurzweil, refrigerator car, Second Machine Age, self-driving car, smart grid, smart meter, stem cell, Steve Jobs, technological singularity, The Future of Employment, Thomas Kuhn: the structure of scientific revolutions, Travis Kalanick

Succession is part of a large context of technological evolution as outlined by Michael B. Schiffer, Studying Technological Change: A Behavioral Approach (Salt Lake City: University of Utah Press, 2011). 107. Shane Greenstein, How the Internet Became Commercial: Innovation, Privatization, and the Birth of a New Network (Princeton, NJ: Princeton University Press, 2015). 108. Joel Mokyr, The Gifts of Athena: Historical Origins of the Knowledge Economy (Princeton, NJ: Princeton University Press, 2002), 257–258. 109. Tali Kristal, “The Capitalist Machine: Computerization, Workers’ Power, and the Decline in Labor’s Share within U.S. Industries,” American Sociological Review 78, no. 3 (2013): 361–389. 110. Kjell Erik Lommerud, Frode Meland, and Odd Rune Straume, “Globalisation and Union Opposition to Technological Change,” Journal of International Economics 68, no. 1 (2006): 1–23. 111.

Elizabeth Fones-Wolf, “Sound Comes to the Movies: The Philadelphia Musicians’ Struggle against Recorded Music,” Pennsylvania Magazine of History and Biography 118, nos. 1–2 (1994): 14. 15. Mark Katz, Capturing Sound: How Technology Has Changed Music (Berkeley: University of California Press, 2004), 9. 16. Katz, Capturing Sound, 24. 17. Anderson, “Buried under the Fecundity,” 246. 18. Joel Mokyr, The Gifts of Athena: Historical Origins of the Knowledge Economy (Princeton, NJ: Princeton University Press), 277–278. 19. Randal C. Picker, “From Edison to the Broadcast Flag: Mechanisms of Consent and Refusal and the Propertization of Copyright,” University of Chicago Law Review 70, no. 1 (2003): 281–296. 20. Lunde, “American Federation of Musicians,” 49. 21. Lunde, “American Federation of Musicians,” 47. 22. Seltzer, Music Matters, 30. 23. Seltzer, Music Matters, 31. 24.


World Cities and Nation States by Greg Clark, Tim Moonen

active transport: walking or cycling, Asian financial crisis, Berlin Wall, Big bang: deregulation of the City of London, Boris Johnson, business climate, cleantech, congestion charging, corporate governance, deindustrialization, Deng Xiaoping, financial independence, financial intermediation, Francis Fukuyama: the end of history, full employment, global supply chain, global value chain, high net worth, housing crisis, immigration reform, income inequality, informal economy, Kickstarter, knowledge economy, low skilled workers, megacity, new economy, New Urbanism, Norman Mailer, open economy, Pearl River Delta, rent control, Richard Florida, Silicon Valley, smart cities, sovereign wealth fund, special economic zone, stem cell, supply-chain management, The Wealth of Nations by Adam Smith, trade route, transaction costs, transit-oriented development, upwardly mobile, urban planning, urban renewal, urban sprawl, War on Poverty, zero-sum game

From 1968, it acted exclusively as a ‘one stop shop’ to attract firms, while ­providing economic intelligence. Economic growth nearly doubled and unemployment fell to around 4% by the mid‐1970s. From 1964 to 1979 the share of manufacturing in employment quadrupled (Huff, 1995; Centre for Liveable Cities and Civil Service College Singapore, 2014). Co‐ordinated monitoring and appraisal of the emerging knowledge economy has helped the EDB. Economic Review Committees have directed citywide ­transitions towards a more knowledge‐intensive economy, in partnership with educational establishments. Spatial contiguity and unitary government make cross‐departmental reviews and economic development policy implementation considerably easier than the equivalent exercises in large, multi‐layered states (Centre for Liveable Cities and Civil Service College Singapore, 2014).

A recent tightening of Singapore’s foreign worker and immigration policy leaves Singapore vulnerable to shortages of qualified manpower in lower‐end and high‐end industries. How judiciously and flexibly the government selects and integrates immigrants will shape Singapore’ status as a forward‐looking and inclusive city (Bin, 2013; Chan, 2014). Singapore continues to take steps to adapt its education system to the knowledge economy, but it is unclear what role the government can play to ensure a strong supply of middle‐income jobs for those with mid‐tier skills. A two‐tier model of highly paid and low‐skilled jobs that resembles other world cities has begun to raise questions about the future spectrum of employment. The capacity of local businesses to grow by reducing overhead and land costs will be one factor that shapes Singapore’s ability to grow middle‐income jobs in the future (Centre for Liveable Cities and Civil Service College Singapore, 2014).


pages: 165 words: 47,193

The End of Work: Why Your Passion Can Become Your Job by John Tamny

Albert Einstein, Andy Kessler, asset allocation, barriers to entry, basic income, Bernie Sanders, cloud computing, commoditize, David Ricardo: comparative advantage, Downton Abbey, future of work, George Gilder, haute cuisine, income inequality, Jeff Bezos, knowledge economy, Mark Zuckerberg, Peter Thiel, profit motive, Saturday Night Live, Silicon Valley, Stephen Hawking, Steve Ballmer, Steve Jobs, There's no reason for any individual to have a computer in his home - Ken Olsen, trickle-down economics, universal basic income, upwardly mobile, Yogi Berra

Fortunately for him, he was turned down for every job he applied for—even at Kentucky Fried Chicken53—so he founded Alibaba, the Amazon of the Orient, and is now worth billions. In his classic book Wealth and Poverty, George Gilder notes that while education and credentials are most important in government, “elsewhere most skills are learned on the job.”54 It’s not that people should avoid education, but education has little to do with success in the working world. It’s said that we live in a “knowledge economy,” but most people don’t understand what that means. Precisely because the economy is evolving faster and faster, classroom teaching can’t keep up. The “knowledge” that wins is gained by doing the work that corresponds with your skills. We’re all intelligent, but in different ways. A prosperous economy means more of us will get to express our intelligence regardless of whether an impressive degree is attached to our name.


pages: 441 words: 136,954

That Used to Be Us by Thomas L. Friedman, Michael Mandelbaum

addicted to oil, Affordable Care Act / Obamacare, Albert Einstein, Amazon Web Services, American Society of Civil Engineers: Report Card, Andy Kessler, Ayatollah Khomeini, bank run, barriers to entry, Berlin Wall, blue-collar work, Bretton Woods, business process, call centre, carbon footprint, Carmen Reinhart, Cass Sunstein, centre right, Climatic Research Unit, cloud computing, collective bargaining, corporate social responsibility, creative destruction, Credit Default Swap, crowdsourcing, delayed gratification, energy security, Fall of the Berlin Wall, fear of failure, full employment, Google Earth, illegal immigration, immigration reform, income inequality, Intergovernmental Panel on Climate Change (IPCC), job automation, Kenneth Rogoff, knowledge economy, Lean Startup, low skilled workers, Mark Zuckerberg, market design, mass immigration, more computing power than Apollo, Network effects, obamacare, oil shock, pension reform, Report Card for America’s Infrastructure, rising living standards, Ronald Reagan, Rosa Parks, Saturday Night Live, shareholder value, Silicon Valley, Silicon Valley startup, Skype, Steve Jobs, the scientific method, Thomas L Friedman, too big to fail, University of East Anglia, WikiLeaks

As they say in football, “You are what your record says you are.” Our record says that we are a country whose educational performance is at best undistinguished. Secretary of Education Arne Duncan made no excuses for the results. The day the 2009 PISA results were published (December 7, 2010), he issued a statement, saying, “Being average in reading and science—and below average in math—is not nearly good enough in a knowledge economy where scientific and technological literacy is so central to sustaining innovation and international competitiveness.” The PISA test results got some fleeting newspaper coverage and then disappeared. No radio or television station interrupted its programming to tell us how poorly we had done; neither party picked up the issue and used it in the 2010 midterms. Partial-birth abortion received more attention.

This kind of “extra” is what “better” education has to achieve and to inspire. For the last 235 years, America expanded and upgraded its educational system again and again in line with advances in technology. When we were an agrarian society, that meant introducing universal primary education; as we became an industrial society, that meant promoting universal high school education; as we became a knowledge economy, that meant at least aspiring to universal postsecondary education. Now the hyper-connected world is demanding another leap. Mark Rosenberg, the president of Florida International University, which has 42,000 students, summed up what it is: “It is imperative that we become much better in educating students not just to take good jobs but to create good jobs.” The countries that educate and enable their workers to do that the best will surely thrive the most.


pages: 477 words: 135,607

The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger by Marc Levinson

"Robert Solow", air freight, anti-communist, barriers to entry, Bay Area Rapid Transit, British Empire, business cycle, call centre, collective bargaining, conceptual framework, David Ricardo: comparative advantage, deindustrialization, deskilling, Edward Glaeser, Erik Brynjolfsson, full employment, global supply chain, intermodal, Isaac Newton, job automation, Jones Act, knowledge economy, Malcom McLean invented shipping containers, manufacturing employment, Network effects, New Economic Geography, new economy, oil shock, Panamax, Port of Oakland, post-Panamax, Productivity paradox, refrigerator car, South China Sea, trade route, Works Progress Administration, Yom Kippur War, zero-sum game

., p. 208; Miriam Dossal Panjwani, “Space as Determinant: Neighbourhoods, Clubs and Other Strategies of Survival,” in Davies et al., Dock Workers, 2:759; Robin Carruthers, Jitendra N. Bajpai, and David Hummels, “Trade and Logistics: An East Asian Perspective,” in East Asia Integrates: A Trade Policy Agenda for Shared Growth (Washington, DC, 2003), pp. 117–137. 10. David Hummels, “Time as a Trade Barrier,” mimeo, Purdue University, July 2001. 11. Joel Mokyr, The Gifts of Athena: Historical Origins of the Knowledge Economy (Princeton, 2002), p. 232. 12. Clark, Dollar, and Micco, “Port Efficiency,” p. 422; Nuno Limão and Anthony J. Venables, “Infrastructure, Geographical Disadvantage and Transport Costs,” World Bank Economic Review 15, no. 3 (2001): 451–479; Robin Carruthers and Jitendra N. Bajpai, “Trends in Trade and Logistics: An East Asian Perspective,” Working Paper No. 2, Transport Sector Unit, World Bank, 2002. 13.

Washington, DC: Naval Historical Center, 1986. McDougall, Ian. Voices of Leith Dockers. Edinburgh: Mercat Press, 2001. McNickle, Chris. To Be Mayor of New York: Ethnic Politics in the City. New York: Columbia University Press, 1993. Minor, Woodruff. Pacific Gateway: An Illustrated History of the Port of Oakland. Oakland: Port of Oakland, 2000. Mokyr, Joel. Tbe Gifts of Athena: Historical Origins of the Knowledge Economy. Princeton: Princeton University Press, 2002. Mollenkopf, John, and Manuel Castells, eds. Dual City: Restructuring New York. New York: Russell Sage Foundation, 1992. Moses, Robert. Public Works: A Dangerous Trade. New York: McGraw-Hill, 1970. Nelson, Bruce. Divided We Stand: American Workers and the Struggle for Black Equality. Princeton: Princeton University Press, 2001. _. Workers on the Waterfront: Seamen, Longshoremen, and Unionism in the 1930s.


pages: 515 words: 142,354

The Euro: How a Common Currency Threatens the Future of Europe by Joseph E. Stiglitz, Alex Hyde-White

bank run, banking crisis, barriers to entry, battle of ideas, Berlin Wall, Bretton Woods, business cycle, buy and hold, capital controls, Carmen Reinhart, cashless society, central bank independence, centre right, cognitive dissonance, collapse of Lehman Brothers, collective bargaining, corporate governance, correlation does not imply causation, credit crunch, Credit Default Swap, currency peg, dark matter, David Ricardo: comparative advantage, disintermediation, diversified portfolio, eurozone crisis, Fall of the Berlin Wall, fiat currency, financial innovation, full employment, George Akerlof, Gini coefficient, global supply chain, Growth in a Time of Debt, housing crisis, income inequality, incomplete markets, inflation targeting, information asymmetry, investor state dispute settlement, invisible hand, Kenneth Arrow, Kenneth Rogoff, knowledge economy, light touch regulation, manufacturing employment, market bubble, market friction, market fundamentalism, Martin Wolf, Mexican peso crisis / tequila crisis, money market fund, moral hazard, mortgage debt, neoliberal agenda, new economy, open economy, paradox of thrift, pension reform, pensions crisis, price stability, profit maximization, purchasing power parity, quantitative easing, race to the bottom, risk-adjusted returns, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, secular stagnation, Silicon Valley, sovereign wealth fund, the payments system, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, too big to fail, transaction costs, transfer pricing, trickle-down economics, Washington Consensus, working-age population

The move from agriculture to industry in the late 19th and early 20th centuries was often traumatic.15 Those in the older sectors saw their incomes and wealth evaporate, and had little access to capital markets; they couldn’t make the investments required to shift from the old economy to the new. But much the same is true as the economy moves from manufacturing to the service sector, and especially as it moves toward an innovation and knowledge economy. Creating a learning economy is not easy, and the government needs to play a central role.16 At the center of America’s knowledge economy are its first-rate higher educational institutions, many of which were established more than a hundred years ago, some hundreds of years ago. And even they achieved much of their greatness as a result of migration from Europe around World War II, and with massive government support in the war and afterward for research. So, too, the culture and “ecology” of Silicon Valley—with its venture capital firms and close nexus between universities and enterprises—was created over a span of decades.


pages: 162 words: 51,473

The Accidental Theorist: And Other Dispatches From the Dismal Science by Paul Krugman

"Robert Solow", Bonfire of the Vanities, Bretton Woods, business cycle, clean water, collective bargaining, computerized trading, corporate raider, declining real wages, floating exchange rates, full employment, George Akerlof, George Gilder, Home mortgage interest deduction, income inequality, indoor plumbing, informal economy, invisible hand, Kenneth Arrow, knowledge economy, life extension, new economy, Nick Leeson, paradox of thrift, Paul Samuelson, plutocrats, Plutocrats, price stability, rent control, Ronald Reagan, Silicon Valley, trade route, very high income, working poor, zero-sum game

The royalties the Four Sopranos earn from their recordings are surprisingly small; mainly the recordings serve as advertisements for their arena concerts. The fans, of course, go to these concerts not to appreciate the music (they can do that far better at home) but for the experience of seeing their idols in person. Technology forecaster Esther Dyson got it precisely right in 1996: “Free copies of content are going to be what you use to establish your fame. Then you go out and milk it.” In short, instead of becoming a Knowledge Economy we have become a Celebrity Economy. Luckily, the same technology that has made it impossible to capitalize directly on knowledge has also created many more opportunities for celebrity. The 500-channel world is a place of many subcultures, each with its own culture heroes; there are people who will pay for the thrill of live encounters not only with divas but with journalists, poets, mathematicians, and even economists.


pages: 194 words: 49,310

Clock of the Long Now by Stewart Brand

Albert Einstein, Brewster Kahle, Buckminster Fuller, Colonization of Mars, complexity theory, Danny Hillis, Eratosthenes, Extropian, fault tolerance, George Santayana, Internet Archive, Jaron Lanier, Kevin Kelly, knowledge economy, life extension, longitudinal study, low earth orbit, Metcalfe’s law, Mitch Kapor, nuclear winter, pensions crisis, phenotype, Ray Kurzweil, Robert Metcalfe, Stephen Hawking, Stewart Brand, technological singularity, Ted Kaczynski, Thomas Malthus, Vernor Vinge, Whole Earth Catalog

In 01944 it was those aging veterans, then in politically conservative American Legion posts, who pushed through the GI Bill for returning World War II veterans, providing them with college tuition and low-cost home mortgages; it was not a Roosevelt New Deal program at all. The GI Bill’s cost of $14.5 billion was paid back eightfold in taxes in the next twenty years, it jump-started the boom years of the 01950s, it built the world’s largest middle class, and it set the nation decades ahead as the world moved into a knowledge economy. America’s greatest infrastructural investment ever was made as a gesture of gratitude and justice rather than of profound forethought. A move in one infinite game—generational responsibility—paid off in another infinite game—growing prosperity. Perhaps James Carse is right to end his book with the words, “There is but one infinite game.” Maturity is largely a combination of hard-earned savvy, the habit of thinking ahead, and the patience to see long-term projects through.


pages: 193 words: 47,808

The Flat White Economy by Douglas McWilliams

"Robert Solow", access to a mobile phone, banking crisis, Big bang: deregulation of the City of London, bonus culture, Boris Johnson, Chuck Templeton: OpenTable:, cleantech, cloud computing, computer age, correlation coefficient, Edward Glaeser, en.wikipedia.org, Erik Brynjolfsson, eurozone crisis, George Gilder, hiring and firing, income inequality, informal economy, Kickstarter, knowledge economy, loadsamoney, low skilled workers, mass immigration, Metcalfe’s law, Network effects, new economy, offshore financial centre, Pareto efficiency, Peter Thiel, Productivity paradox, Robert Metcalfe, Silicon Valley, smart cities, special economic zone, Steve Jobs, working-age population, zero-sum game

‘The Impact of Recent Immigration on the London Economy’, London School of Economics, July 2007. 19. 2011 Census (workplace population analysis), Office for National Statistics, May 2014: www.ons.gov.uk/ons/dcp171766_364058.pdf 20. www.bbc.co.uk/news/uk-england-25879675 21. ‘Internal Migration by Local Authorities in England and Wales, Year Ending June 2012’, Office for National Statistics, June 2013: www.ons.gov.uk/ons/dcp171778_315652.pdf 22. ‘Simply the Best? Skilled migrants and the UK’s knowledge economy’, L Hopkins & C Levy, The Big Innovation Centre, June 2012. 23. Under the UK’s national qualifications framework, Level 4 is equivalent to a Higher National Certificate – see www.gov.uk/what-different-qualification-levels-mean. 24. 2011 Census (workplace population analysis), Office for National Statistics, May 2014: www.ons.gov.uk/ons/dcp171766_364058.pdf 25. travel.wikinut.com/The-Cultural-Diversity-of-London/y6e37vl3/ 26.


pages: 196 words: 54,339

Team Human by Douglas Rushkoff

1960s counterculture, autonomous vehicles, basic income, Berlin Wall, big-box store, bitcoin, blockchain, Burning Man, carbon footprint, clean water, clockwork universe, cloud computing, collective bargaining, corporate personhood, disintermediation, Donald Trump, drone strike, European colonialism, Filter Bubble, full employment, future of work, game design, gig economy, Google bus, Gödel, Escher, Bach, Internet of things, invention of the printing press, invention of writing, invisible hand, iterative process, Kevin Kelly, knowledge economy, life extension, lifelogging, Mark Zuckerberg, Marshall McLuhan, means of production, new economy, patient HM, pattern recognition, peer-to-peer, Peter Thiel, Ray Kurzweil, recommendation engine, ride hailing / ride sharing, Ronald Reagan, Ronald Reagan: Tear down this wall, shareholder value, sharing economy, Silicon Valley, social intelligence, sovereign wealth fund, Steve Jobs, Steven Pinker, Stewart Brand, technoutopianism, theory of mind, trade route, Travis Kalanick, Turing test, universal basic income, Vannevar Bush, winner-take-all economy, zero-sum game

A search engine designed to promote academic thought became the world’s biggest advertising agency, and a social media platform designed to help people connect became the world’s biggest data collector. Enthusiasts still associated the net with education and political power. They pushed for technology in schools and laptops in Africa, even though the digital society’s essential values had been left behind in the era of 2400-baud modems. The primary purpose of the internet had changed from supporting a knowledge economy to growing an attention economy. Instead of helping us leverage time to our intellectual advantage, the internet was converted to an “always on” medium, configured to the advantage of those who wanted to market to us or track our activities. Going online went from an active choice to a constant state of being. The net was strapped to our bodies in the form of smartphones and wearables that can ping or vibrate us to attention with notifications and updates, headlines and sports scores, social media messages and random comments.


pages: 173 words: 53,564

Fair Shot: Rethinking Inequality and How We Earn by Chris Hughes

"side hustle", basic income, Donald Trump, effective altruism, Elon Musk, end world poverty, full employment, future of journalism, gig economy, high net worth, income inequality, invisible hand, Jeff Bezos, job automation, knowledge economy, labor-force participation, Lyft, M-Pesa, Mark Zuckerberg, meta analysis, meta-analysis, new economy, oil rush, payday loans, Peter Singer: altruism, Potemkin village, precariat, randomized controlled trial, ride hailing / ride sharing, Ronald Reagan, Second Machine Age, self-driving car, side project, Silicon Valley, TaskRabbit, The Bell Curve by Richard Herrnstein and Charles Murray, traveling salesman, trickle-down economics, uber lyft, universal basic income, winner-take-all economy, working poor, working-age population, zero-sum game

Eyebrows raised and clearly incredulous, they asked, “Don’t you think it was the education you got that made your life possible?” I had sought out and benefited from a world-class education, and it had indeed worked for me—so it surely must be the most important tool to help everyone else. “Give a man a fish,” goes the old proverb, “and you will feed him for a day. Teach him to fish, and you will feed him for a lifetime.” The transition to a knowledge economy has only intensified this faith. If we’re creating fewer manual jobs that pay living wages, then the clear answer, it would seem, is to help people learn the skills and smarts for the high-skill, high-pay “jobs of the future.” We tell ourselves that if we provide everyone with the strong foundation of a good education and make college more accessible and affordable, then anyone who has a bit of initiative will be able to enjoy a secure economic future.


pages: 209 words: 53,236