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Book Review: The Work of Nations by Reich

February 1st, 2009 · No Comments

I just finished reading Robert Reich’s book the Work of Nations and am both impressed and dissapointed with the author. The main argument of the book is that the routine production work is disappearing, moving overseas or being automated, yet analytical work excludes many people without proper background and training. Thus, the result is a fast divergence in incomes between the analysts and the workers. He mentions two other types of jobs: in person services, which he argues will have a downward wage preasure, since the routine production workers will try to enter that field and government employees, which he asserts are largely protected from the outside forces. He than draws a conclusion that in light of lack of external enemy America has lost the unifying purpose and thus will likely get pulled appart in to separate communities that will segmenent by income and thus create much disparity and separation between the rich and the poor. And since the best way to be an analyst is in surrounding of other analysts and doing a work of an analyst, the poor comunities will have no way of climbing out of the hole they are in.

I agree with his trend analysis, but completely disagee with the conclusions or approaches and suggestions of action. He rightly points out that analysts actually enjoy their jobs and would work even without pay for the job satisfaction and because they feel they are making a difference. Yet, he does not at all include this point in his calculus. Successful people want to make a difference in the world and are more likely to help a struggling nearby town if they are really successful. It is in their enlightened self interest to address poverty and hopelessness in US, since it increases both their personal security, but more importantly, their feeling of selfworth and contribution.

It seemed a bit odd to me, that Reich is bothered with the influx of immigrants, completely dismissing the fact that they are much more likely to start small businesses and thus account for a huge source of American jobs.

I was particularly bothered with the idea, which Obama (Reich’s fan) perpetuates that we need to dump hundreds of billions of dollars in to renovating our infrastructure and upgrading our schools. They miss the point that infrastructure of yesterday does not matter any longer. It has to be replaced with a completely new generation of infrastructure, one that goes away from Mass Production and to more of a customized localized delivery.

Thus, instead of building bigger schools, we need lots of small neighborhood education centers that act as ongoing learning centers and community centers for each neighborhood that is located within walking distance of them. Educational centers that focus on teaching people to think and collaborate, rather than just be maladjusted mass production extensions of the machine.

Instead of building more roads and bridges, we need to create city layouts that allow for and foster, more walking, biking and public transportation. By creating communities where people can walk to work and stores, we will be rebuilding America where people actually talk to their neighbors and where healthcare does not account for 1/5th of our GDP. Not only are these kinds of communities more efficient, better for the environment and health, but they will foster the reconnection between the people in all four worker categories and assist with trasition of routine workers to analyst functions.

Instead of worrying that America will fall apart, we can recognize that America will change, and the sooner we get on board, the better position we will have in the world economy.

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Tags: Education · Great Books · Healthcare · Politics

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