We all know that we've entered a new economy. The Great Recession of 2008/2009 has been renamed The Great Restructuring, and we're all starting to feel the effects. With the demise of the Industrial Age, our economic systems, business practices, and social structures are absorbing the realities of the Information Age. The western world's economy has shifted from producing goods with our hands to producing goods with our minds.
Where does that leave the United States? Like the European Union, our manufacturing base has given way to an increasing need for engineers, scientists, and service industry professionals. Theo Eicher, professor and director at the UW Economic Policy Research Center, succinctly put it that our economy has shifted that from manufacturing to mentis-facturing. That means that we have changed from the bulk of our economy being produced by mechanical means (by hand, or "manu-") to being produced by our intellects ("mentis" or mind).
It is estimated that by 2016, currently "developing" nations will output 2/3 of all goods and the U.S. and the E.U. will produce only 1/3 of goods. That's in strong contrast of where we were in 2000. By 2016, more than 66% of our jobs will in service or innovation industries and will rely on creative, innovative thinking to be productive and competitive.
Yet, if you look at our citizens, we are below average in math and science literacy. And only roughly 30% get a college degree. That means in the new economy, many in our society will slide to lower middle class as the wage gap between college-educated and high school graduates increases. The ones who do not graduate from high school will be completely disenfranchised as un- and low-skilled job opportunities shrink.
We could conceivably see an unemployment rate in this country that surpasses 20%. But there is a way to change this outcome. In order to compete, we need to focus on getting smarter. Doctorate degrees are not required, but we will need more high school graduates, better prepared to take on jobs that don't even exist today.
How do you propose that we prepare for an increase in information-based jobs? I have my own ideas, which I will share on 4/27. In that post, I will discuss the requirements for making the shift from Manufacturing to Mentis-facturing, or a Mind-Driven Economy.
Keeping the world connected through issues that impact urban and regional policy and development.
There is a need for financial assistance with our young people wanting to go to college. What has been seen in recent years, there is a need for our youth to have a strong foundation in their studies.
ReplyDeleteWe need to make college accessible to everyone. We need higher standards for early education. Now that our economy is in such trouble how can we get people behind paying for better educations? Americans don't want to pay any more taxes...we really need to "restructure". We are falling behind on education and unfortunately we need to invest money. Not being an educated society, can we afford that???
ReplyDeleteMy thoughts are make state colleges free for all--all disciplines qualify--we need the arts as much as the sciences to have a robust thinking population. Get people educated and then have them pay the state back through mandatory payroll deductions spread out over the lifetime or until paid back--which ever comes first. That way, you have educated citizens w/o the stress of financial aid or lack of funds to go to school. The education would require an investment from the state government up front, but with steady income stream being repaid by grads, it could potentially be a self-sustaining model for perpetuating talent via higher education.
ReplyDeleteAs part of the deal,include mandatory post graduate work experience in the field of study that contributes back to the local economy. I would allow for the work experience to be earned where ever it is required in the United States. To encourage this, state colleges develop business/civic relationships on all levels of economic development that bring on the post-grads as part of the agreement.
Hi Tracy,
ReplyDeleteSpending now for future benefits is an investment. Education is an investment. As a society we have to get over the tax cut hysteria that has gripped our state and our nation since the 80's. I agree with all the comments above. Education is surely worth investing in and we need to be willing to tax ourselves to pay for it. The high earner income tax initiative backed by Bill Gates Sr. is one step in the right direction.