Sunday, September 2, 2007

The World is Flat post 5

The question on the minds of most readers from the very beginning of this book is, is the flat world a good thing for America? This is a complex question that we see even Friedman struggle to answer and the answers that he does provide us with are purely speculation. The flat world will have a different impact on each American family. The question that seems to be asked the most is "what will happen to our jobs?" Everyone would like to hear that they will be safe in the future and will always be able to provide for their families. However, due to outsourcing, many of our digital or factory jobs are being sent overseas. Due to their weak economies and huge populations China, India, Europe, and Japan are willing to put in the time and labor for a fraction of the price of American workers.

Friedman tells us that this is a temporary problem. He says that "as the Chinese economy opens up to the world and reforms, the wages of Chinese knowledge workers will rise up to American/world levels." So Friedman believes that overtime these economies will open up and their labor prices will rise to that of ours long before Americas economy could ever possibly come crashing down. He also notes that as Americans we may lose some of our jobs to them now but that it is essential to just keep moving through because it will all change soon enough. This puts the mind of the average American to rest. They have now been reassured that we will all have jobs in the future and that our economy will not be taking a nose dive any time soon.

However, for several family's this does not provide any reassurance at all. Many people have already lost their jobs and been thrown out on the streets with a simple "nice working with you". My dad worked at Dexter Shoe for 20 years and they threw him and everyone else at the factory out so they could ship the company over to China. At this point my dad was 40 and forced to go on to college to simply be able to provide for his family. The state pitched in and in the end it worked out okay. For my grandmother however, things were not quite so great. She had worked at the factory for 36 years and was now too old to go back to college. By the time she could graduate it would be close to time for her to retire. So though Friedman's speculations are enough for most people, for some it is not nearly enough.

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