An article in the New York Times seemed to echo discussion on these pages about a significant shift in the economy, the type of work we do and the kind of goods and services we buy. The Times says that the dramatic rise in jobless in the US shows that there will be a “vast” remaking of the US economy which will require the retraining of a large chunk of the workforce:
This dynamic has proved true in past recessions as well, with fading industries pushed to the brink during downturns before others emerged to create jobs when economic growth inevitably resumed. But with job losses so enormous over such a short period of time, some economists argue that the latest crisis challenges the traditional American response to hard times.
For decades, the government has reacted to downturns by handing out temporary unemployment insurance checks, relying upon the resumption of economic growth to restore the jobs lost. This time, the government needs to place a greater emphasis on retraining workers for other careers, these economists say.
When you think about the companies that are closing – how many of them do you think, ‘that was a great company , how unlucky’? Most of the companies in trouble had so-so products, so-so service – and even the best of these were only ‘good enough’. We should remember that many of the powerful companies that we know of today rose in the 30s despite the Depression. What good change may we see come out of today’s struggles?
New York Times: Job Losses Hint at Vast Remaking of Economy
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The recession feels to me as the Globalized version of pure Darwinism. It’s not a matter of mortgages whereas it is all about a growing snowball of only apparently performing industries, individuals and systems.
However, I’m optimist and belive that this domino effect will bring the light back to a new reality where everyone is concious of their impact on reality when considered as a whole.
Piers, you came to Stockholm last fall and gave a lecture where I was seating. Since then, I’ve been thinkin quite a lot on the impact of such a strong social system – as the one established in Sweden – on individuals, that take too much for granted and do not value things as much as they should.
There are many examples for this.
From free University, to PhD students who, after getting the chance of getting quite a good salary (that will remain until they are done with their studies… Why did you think PhDs took longer in here??) and the chance to live in extremely cheap flats (when fiding something here in Stockholm is tough) spend their days on growing families and raising kids rather than researching.
From papaledhiget, the tones of money and holidays that you get when becoming a parent to VABBAR (if your kid is sick, stay home with him, you’ll get 80% of your salary).
From Fridays, that seem to be let’sNotWorkButSipCoffeeWithBuns day, to the decision from the government to freeze the interest rate at 1% (regardless of the inflation of the krona).
Finally, the queuing system (basically you can hire any apartment in the center, paying low rents… As long as you registered on a list maybe 24 years ago?!?) for hiring apartments helps nobody (those owning one of these first-hand contracts speculate and hire in second hand after having doubled the price)
It might shine but it’s not always gold.
So my hope is that crisis and layoffs wake up the society I live in so they start appreaciating all the advantages they have.
March 10th, 2009 at 4:28 am