The Story
Capitalism stands alone, and apparently triumphant.
Socialism is almost a memory. The social welfare state is under siege, if not already broke. But the economic, social and political forces heading into the 21st century are as paradoxical as they are irresistable. Will capitalism be able to adapt? Or will it be yet another unchallenged, and then suddenly obselete, ideology.
Consider:
* in all of Western Europe, net employment did not grow by a single job from 1973 to 1994
* the Japanese recession has gone on, with no end in sight, since 1989
* in mid-1994, Mexico had done everything by the book - balanced its budget, privatised more than 1000 state companies, chopped government regulations, joined Nafta and agreed to dramatically cut its tariffs and quotas. Six months later, its economy was in ruins.
* in the 1980s, all of the earnings growth in the Us fell to the highest paid 20% of the workforce, with an amazing 64% of the growth going to the wealthiest 1%. the pay of the average Fortune 500 Ceo rose from 35 to 157 times that of the average production worker
The dilemmas of 20th century capitalism are as much political as economic. Its democratic governments are failing to find the answers to the real worries of their citizens. The 3 or 4 year decision horizon of business and politics cannot provide for the long term social investments of the technological age. In question is the driving force of capitalism - the idea that maximised consumption and choice equates to individual welfare.
The interaction of new technologies and ideologies are creating a new global economic system, mapped out in compelling clarity by Lester Thurow. The new game requires new strategies. Those who adapt and learn the new game will become the individuals, businesses, communities and nations of the new century.
Lester Thurow, author of the bestseling Head To Head, The Zero-Sum Game and Dangerous Currents, is an eminent commentator on the global economy and a shaping voice of Us economic policy. He is professor of economics and former dean of MIT'S Sloan School of Economics.
Description
Capitalism stands alone, and apparently triumphant.
Socialism is almost a memory. The social welfare state is under siege, if not already broke. But the economic, social and political forces heading into the 21st century are as paradoxical as they are irresistable. Will capitalism be able to adapt? Or will it be yet another unchallenged, and then suddenly obselete, ideology.
Consider:
* in all of Western Europe, net employment did not grow by a single job from 1973 to 1994
* the Japanese recession has gone on, with no end in sight, since 1989
* in mid-1994, Mexico had done everything by the book - balanced its budget, privatised more than 1000 state companies, chopped government regulations, joined Nafta and agreed to dramatically cut its tariffs and quotas. Six months later, its economy was in ruins.
* in the 1980s, all of the earnings growth in the Us fell to the highest paid 20% of the workforce, with an amazing 64% of the growth going to the wealthiest 1%. the pay of the average Fortune 500 Ceo rose from 35 to 157 times that of the average production worker
The dilemmas of 20th century capitalism are as much political as economic. Its democratic governments are failing to find the answers to the real worries of their citizens. The 3 or 4 year decision horizon of business and politics cannot provide for the long term social investments of the technological age. In question is the driving force of capitalism - the idea that maximised consumption and choice equates to individual welfare.
The interaction of new technologies and ideologies are creating a new global economic system, mapped out in compelling clarity by Lester Thurow. The new game requires new strategies. Those who adapt and learn the new game will become the individuals, businesses, communities and nations of the new century.
Lester Thurow, author of the bestseling Head To Head, The Zero-Sum Game and Dangerous Currents, is an eminent commentator on the global economy and a shaping voice of Us economic policy. He is professor of economics and former dean of MIT'S Sloan School of Economics.
