Sunday, June 3, 2007

Book Report #3 "The World Is Flat" (pgs 227-571)

This report will discuss Friedman's chapters 4 -15 which focus on: The Great Sorting Out-which rounds up How the World Became Flat, then moves on to discuss America and the Flat World, Developing Countries and the Flat World, Companies and the Flat World, Geopolitics and the Flat World, & the Conclusion: Imagination.

The Great Sorting Out
Friedman credits Karl Marx with foreshadowing flatteners that would make it possible for the world to expedience a global market. Marx wrote that nations would be pressured because of the Indrustrial Revolution to produce and consume as part of becoming part of "civilisation" Friedman discusses the fact that the flatteners have been good for business but bad for communities "nonmarket values like social cohesion, religious faith, and national pride." And he ask, "To what extent should we stand aside, 'get with the program,' and do all we can to squeeze out yet more inefficiencies...?"(pgs. 234-237) Some people are excited as they see the "opportunities," some are anxious as they fear change and losing jobs and a sense of community and networks such as al Qaeda. Whether they are excited or anxious, they are all stressed.

Are we exploiting cheap labor, empowering individuals, or putting Americans out of work. Friedman ask "who is exploiter and who is exploited?.(pgs. 237-240) Who are companies loyal to? Answer- their stockholders. They will go to the cheapest, most efficient suppliers & labor. Friedman uses Wal-Mart as an example. They are good for the consumer but bad for the employee. But are they really good for the consumer? The consumer wants them to be "relentless" in keeping it's prices low but "American taxpayers chip in to pay for many full-time Wal-Mart employees because they usually require incremental health insurance, public housing, [and] food stamps. So is the consumer really saving money if their tax dollars are going to support Wal-Marts employees? "...when you totally flatten your supply chain, you also take a certain element of humanity out of life."(pgs. 242-252)

America and Free Trade
Friedman goes on to say that while America is losing it's most of it's low-skilled and blue college jobs to overseas all is not lost. He suggests that there will be a new middle class job pool will be created for Americans to choose from but these jobs will be "idea" jobs, "specialty" jobs and will require college degrees. "The Indians and the Chinese are ...racing us to the top-and that is a good thing!" A good thing for everyone except the low-skilled Americans.(pgs. 261-270)

The Untouchables
"There will be plenty of good jobs out there...for people with the right knowledge, skills, ideas, ...self motivation, and passion for what [they] do...finish your homework-people in China are starving for your jobs...make yourself an untouchable- people whose jobs cannot be outsourced, digitized, or automated...be a celebrity, an engineer, a scientist, provide a specialized service, or be a great collaborator & orchestrator, a synthesizer, an explainer, a great adapter, discover/create renewable energies and environmentally sustainable systems, be a passionate personalizer (take a vanilla task...[add your] own chocolate sauce...) a great localizer (the freelancer who finds a way to use a satellite dish, a DSL line, a Blackberry, a PC, or some new software to become a book editor or a film editor or an eBay entrepreneur from his or her bedroom)...an idea man."(pgs. 276-300)