Editor's Note: This article continues our series excerpted from AC360°'s contributor David Gewirtz's upcoming book, How To Save Jobs, which will be available in December. Over the next few months, we'll be excerpting the first section of the book, which answers the question, "How did we get here?". Last time, we looked at our changing relationship with work This time, we'll begin our look at how changes China and India will be impacting our workforce for years to come. To learn more about the book, follow David on Twitter @DavidGewirtz.
David Gewirtz | BIO
AC360° Contributor
Editor-in-Chief, ZATZ Publishing
Here's an interesting universal truth: everyone wants a better life. This is as true of the desperate poor in third world nations as it is of middle-class Americans. And while economic downturns are scary to most Americans, even the poorest of Americans live a better life than the shocking level of never-ending squalor experienced by some of the poorest of the poor in developing nations.
Almost five times as many Chinese and Indian citizens live on less than $2 a day than there are people in the United States.
Nations like the People's Republic of China and the Republic of India have vowed to change all that. Together, China and India make up 37 percent of the world's population. By contrast, the United States has only 4 percent of the world's 6.77 billion people and yet our Gross Domestic Product (GDP) is almost double that of China and four times that of India.
That means that if you want to understand the current job situation in America, you absolutely, positively have to understand the job situation in China and India.
China's economic overhaul
Both China and India began their long march to first-world status decades ago. Until about 1978, the PRC's economy was barely a blip on the world's radar.
When measured in terms of purchasing power, the economy of the People's Republic of China (PRC) is now the second largest in the world, with a $7.8 trillion GDP in 2008. The European Union's economy is technically larger, but that's for a cluster of countries.
China's economic reforms were gradual, often in response to specific problems or economic circumstances.
Since its inception in 1949, China ran a Soviet-style economy. Consumer spending was virtually non-existent, central planning determined nearly all economic activity, and the nation's industrial growth consisted mainly of building big factories. Entrepreneurship was not only not encouraged, it was actively punished.
David Gewirtz | BIO
AC360° Contributor
Editor-in-Chief, ZATZ Publishing
I think it's time I weighed in on the New Jersey election results. Some in the GOP (Chairman Michael Steele, for example) are claiming "historic" victories. Others, most notably Democrat Nancy Pelosi, are doing their level best to completely ignore the gubernatorial election results. That's right, Nancy. If you close your eyes, it never happened.
The punditocracy is going to town over this. First, most of us didn't even realize we were going to get the gift of politics until we turned on our TVs last night. It's like finding a post-season All Stars game on your TiVo when you didn't even know one was scheduled to record.
Talking heads. Pontification. Spin. It's enough to make a guy geek out all giddy with delight.
Back to New Jersey. First off, I'm a Jersey boy. I grew up in the Garden State and lived there on and off until just a few years ago, when my love for my wife (and her desire to live somewhere without winter) overwhelmed my deep connection with my native soil.
Editor's Note: This article continues our series excerpted from AC360°'s contributor David Gewirtz's upcoming book, How To Save Jobs, which will be available in December. Over the next few months, we'll be excerpting the first section of the book, which answers the question, "How did we get here?". Last time, we looked at riots, massacres and the transactional nature of work This time, we'll look at our changing relationship with work. To learn more about the book, you should follow David on Twitter @DavidGewirtz.
David Gewirtz | BIO
AC360° Contributor
Editor-in-Chief, ZATZ Publishing
Our relation with work has changed as time passed. With the advent of the Industrial Revolution, more and more people lived in cities and areas removed from the land. Individuals became more reliant on buying food and goods rather than growing their own.
America transformed from a tradesman-based economy to one based on the economies of scale factories and industry could produce. The shoemaker, for example, who'd spent years honing his craft and would take weeks to make a pair of shoes, couldn't compete with the industrial age shoe manufacturers that could crank out virtually identical shoes of equal (and sometimes better) quality in mere minutes, and at a fraction of the cost.
For a newly industrialized America, the Great Depression was a one-two punch. Farmers, who were normally relatively self-sufficient, were put out of work due to a man-made occurrence known as the Dust Bowl. But because of the worldwide economic downturn, there also weren't jobs in the cities. Farmers couldn't move to the city to find work, and city dwellers couldn't move to the non-arable open land.
Both of these problems (the economic downturn and the bad land) were man-made. Every school child has been taught about the 1929 stock market crash and the massive bank failures that led to the economic disaster that followed.
Editor's Note: This article continues our series excerpted from AC360°'s contributor David Gewirtz's upcoming book, How To Save Jobs, which will be available in December. Over the next few months, we'll be excerpting the first section of the book, which answers the question, "How did we get here?". Last week, we discussed A short history of jobs This time, we'll look at riots, massacres and the transactional nature of work. To learn more about the book, you should follow David on Twitter @DavidGewirtz.
David Gewirtz | BIO
AC360° Contributor
Editor-in-Chief, ZATZ Publishing
In today's civilization, it's virtually impossible to survive without money. One-hundred-and-fifty centuries ago, if a Natufian wanted to build a hut, he'd find an empty spot of land and dig. But, today, if an American wants to build a house (or even a hut), land has to be bought. If you want to live inside a structure, a transaction of some sort has to take place and that requires money.
It is the transactional nature of a job that creates its complexity in terms of the rest of society. If you want to work for someone else (and have them pay you), you have to convince them that employing you will meet their needs. If you're self-employed, you have to convince prospective clients and customers that hiring you will meet their needs.
In other words, getting a job or getting a gig requires some level of marketing to make someone aware you're there to do the job and some level of sales to convince them you're the right person for the job.
Over the centuries, the nature of work evolved to eventually result in the world of employment we've all come to know and love. There's now always someone buying work and someone else selling it.
The transactional nature of work has also led to all sorts of power imbalances. When there's too much work and not enough workers, it's a seller's market and the workers have more power over what jobs they accept and at what pay level.
Editor's Note: This article begins our new series excerpted from AC360°'s contributor David Gewirtz's upcoming book, How To Save Jobs, which will be available in December. Over the next few months, we'll be excerpting the first section of the book, which answers the question, "How did we get here?". Last week, we answered the question, What is a job? This week, we'll look at a short history of jobs. To learn more about the book, you should follow David on Twitter @DavidGewirtz.
David Gewirtz | BIO
AC360° Contributor
Editor-in-Chief, ZATZ Publishing
Human civilization goes back more than 16,500 years. Harvard Professor of Prehistoric Archeology Ofer Bar-Yosef talks about a civilization he named the "Natufians." These were a people living near modern-day Israel, an ancient tribe he believes were perhaps the world's first farmers.
Today, the area near Israel and Jordon is barren and dry. But 16,500 years ago, it was very different.
Using palynological (the study of spores and grains), paleobotanical (fossil plants), and geomorphological (the origins of landforms) data, Professor Bar-Yosef describes the region as "an oak-dominated parkland and woodland that provided the highest biomass of foods exploitable by humans."
In other words, it was very Garden of Eden-y.
These early humans were unconcerned about being able to pay their mortgages or buy their next cars. Instead, they had four fundamental needs: food, some form of clothing, objects crafted into tools and weapons, and shelter.
When these early humans "went to work," they were initially hunter-gatherers. Their time was spent chasing game and finding animals and other objects they could transform into food, tools, and weapons.
David Gewirtz | BIO
AC360° Contributor
Editor-in-Chief, ZATZ Publishing
Every topic needs its own day or month, and I guess cybersecurity is no exception. This October is the sixth annual Cybersecurity Awareness Month sponsored by the Department of Homeland Security. And while it may seem silly for cybersecurity awareness to need its own month, there's nothing silly about keeping your computer secure.
Let me be very clear here: there are bad guys out there and they are trying to hurt you through your computer.
I know that seems melodramatic, but it's all too true. Cybercriminals, hackers, terrorists, and other malcontents (that sounds so "get off my lawn," doesn't it?) are constantly pushing the limits of Internet security. Most of the time, it's about making money. Sometimes, it's about breaking through security and gaining bragging rights. And, once in a while, it's about causing widespread chaos. No matter the motivation, it ain't good.
This is an arms race.
They'll find a way in, we'll create a new defense, they'll counter-program against the defense, and on and on and on. This is an arms race between security professionals and criminals. Fortunately, there's a lot you can do to defend yourself and your family, and once you've established the right mind-set, you'll be able to take some very basic precautions that'll go a long way to keeping you more secure.
So, let's talk about that mindset first. A lot of people I talk to tell me I'm worrying too much. They tell me they're not important enough to be attacked. They tell me that no one is going to go after them. They tell me that "just this once" there won't be a problem. They tell me that it's all a hoax.
It's not. Here's the thing: attacks are highly automated and easy to do. Every device on the Internet has a number, called an IP address, which consists of four sequences of up to three numbers, like 192.168.1.1. Each sequence ranges from 0 to 255, so the lowest number is 0.0.0.0 and the highest is 255.255.255.255.
David Gewirtz | BIO
AC360° Contributor
Editor-in-Chief, ZATZ Publishing
I know I should be celebrating. The Dow hit 10,000 yesterday after more than a year in the doldrums. So why do I have this really bad feeling in the pit of my stomach?
It's not like the fundamentals of our economy are that much more sound now than they were six or nine months ago. Health care reform still seems like a $2.4 trillion boondoggle intended to benefit those who thrive off our pain. We're still about 20 million jobs below where we need to be for most Americans to be adequately employed. And millions of Americans are still underwater in their homes, if they have anywhere to live at all.
And, oh, sure, the bankers are reporting epic profits, but those profits aren't really real. Those profits are there because taxpayers got suckered into giving away the store to the banks, and the banks kept most of the money, called it profits, used it to boost their stock price, and then gave themselves all millions of dollars in bonuses.
Heck of a scheme, if you can get away with it.
Editor's Note: This article begins our new series excerpted from AC360°'s contributor David Gewirtz's upcoming book, How To Save Jobs, which will be available in October. Over the next few months, we'll be excerpting the first section of the book, which answers the question, "How did we get here?". The second section consists of recommendations about what we need to do as a country to save jobs. The third, final section is a series of hands-on tips and techniques, things real people and real companies can do right now to help keep and create jobs - without waiting for anyone in Washington to get it right. To learn more about the book, follow David on Twitter @DavidGewirtz.
David Gewirtz | BIO
AC360° Contributor
Editor-in-Chief, ZATZ Publishing
Job. Such a simple word has such a profound meaning for everyone in our society. Three simple letters reflect where we spend much of our time as adults, how well we can support ourselves and our families, and even our standing in our communities.
When we're making a living, or having an occupation, a trade, a career, a profession, a calling, a vocation, and a livelihood, we're also talking about jobs. But what exactly is a job? Why do jobs exist? How are they created? How are they lost? And, most importantly, how can we save them?
You need to understand why a job exists.
Let's talk for a minute about what, exactly, a job is. Fundamentally, a job is a trade of time, skill, and spirit for something of value, usually money. You and I put in a good work week and we expect to get paid.
But who pays for the jobs? To answer that question (and it's a very important question), you need to understand why a job exists. At its root, a job exists because somebody needs something done and either can't, or won't - or doesn't want to - do it himself.
Editor's Note: This article continues our multi-part series excerpted from the "Healthcare Hostage Crisis" chapter of AC360° contributor David Gewirtz's upcoming book, How To Save Jobs, which will be available in October. To learn more about the book, follow David on Twitter @DavidGewirtz.
David Gewirtz | BIO
AC360° Contributor
Editor-in-Chief, ZATZ Publishing
Our earlier discussion of the insurance mess, of course, leads us to the push for reforming health care. Americans are getting systematically ripped off by our own medical establishment at levels that almost defy comprehension.
Since the American health care industry is far larger than any other industry in America, and America has the largest economy of any country, that makes the American health care industry the largest industry in the world - and the single largest economic interest bloc in the history of mankind.
The single largest economic interest bloc in the history of mankind
So, as you might guess, the members of the health care industry aren't as interested in reform as those of us who aren't siphoning off an excess trillion dollars a year from the American populace.
Editor's Note: This article continues our multi-part series excerpted from the "Healthcare Hostage Crisis" chapter of AC360° contributor David Gewirtz's upcoming book, How To Save Jobs, which will be available in October. To learn more about the book, follow David on Twitter at http://www.twitter.com/DavidGewirtz. Last week, we looked at the steps insurance companies take to avoid paying your medical bills. This week, we'll look at the problem with health insurance, overall - and what it means if you're an employee with health insurance and you're suddenly out of a job.
David Gewirtz | BIO
AC360° Contributor
Editor-in-Chief, ZATZ Publishing
Clearly, the insurance system is a failure for vast numbers of Americans. That's why it's particularly disturbing that the Senate's new health care bill appears to be putting even more faith in the insurance companies.
Using the insurance industry's own numbers, about 13 percent of every medical dollar goes into the insurance industry, rather than the medical industry. So, of the $2.4 trillion dollars we overspend annually on health care, at least $312 billion feeds the insurance industry.
Here we have the insurance industry, sucking 13 percent off our already excessive costs for health care, and, according to The New York Times, making profits above $60 billion in 2006. Based on the American Journal of Medicine numbers, medically-related bankruptcies account for an annual loss to American citizens of about $6.3 billion.
Lose the job, lose the insurance. Lose the insurance and, suddenly, you're a statistic.
The industry makes $60 billion in profits, but is willing to bankrupt hundreds of thousands of Americans over an amount that's a mere 10 percent of its already astronomical profits.
To be fair, the fault isn't just with the insurance industry. Every industry has a right to make profits. Likewise, we, as consumers, have the right to choose to purchase from a business - or not. If we like the quality, service and value, we buy more and the company succeeds. If we don't like the quality, service, and value, we shop less and the business doesn't succeed.
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