Tag Archives: economy

A New Economic Growth Corporation, the EGC

Instead of soaking the rich, create some riches

drjohn11aDr. John Psarouthakis, Executive Editor, The Business Thinker, llc(www.BusinessThinker.com)
CV in Linkedin: http://linkd.in/1AF7El7

This article is abstracted from the book 

“The Technology Imperative: What Jobs, Jobs, Jobs, Really Means in the 21st Century”. See reference at end of article.

Imagine a social event in which the cocktail hour races off into a sort of rhetorical overdrive. Each conversational cluster splits 50/50 on nearly every topic. Guests circle the room, beverages in hand and politics in mind. Every chat group becomes an ideological scrum. Half the room chants: “Wealthy people rake in an obscene percentage of this country’s personal income! Call in the IRS! Soak ’em!” The other half chants: “Are you crazy? This is America! If you make it, you shouldn’t have to give it up! Otherwise, why bother achieving success?”

That imaginary back-and-forth can be heard in the real world every day, from co-workers sharing lunch to bellowing broadcasters with listeners coast to coast. Interesting as the debate may be, it is irrelevant because it is the wrong debate. What matters most is not how we should define the word “fair.” The meaningful question is: Which share-the-wealth mechanism and what formula will yield the best outcome for all of us, now and as far into the future as the mind’s-eye can see.

The fairness debate does interest me a great deal but it also frustrates me. When a demagogue gets into a strident harangue about “the One Percent” it angers me. Not because I have quite a different idea about what is fair (I do), but because unchecked demagoguery on this subject will, in my opinion, destroy our economy on its way to destroying our society. If my opinion is correct we are in very deep trouble, because demagoguery about “the One Percent” is an extremely popular commodity these days.

Let me share a plan—or rather an idea, the outline of a plan—I believe would leap beyond the fairness debate, a scrum on which neither side will win many converts anytime soon. I think such a plan if set in motion would reinforce—to everyone’s satisfaction—some basic truths about the source of our nation’s wealth. It would do so quickly. It would not be a mere demonstration program. It would create new wealth It would directly address the perceived “One Percent problem” and would be widely viewed as . . . fair. I believe a strong majority of Americans would support this plan. And just one year following the first April 15 after the plan became law, I think public approval would be even stronger.

Continue reading A New Economic Growth Corporation, the EGC

What hath technology wrought?

JP Bio PhotoDr. John Psarouthakis, Executive Editor of www.BusinessThinker.com

On May 24, 1844, the painter and inventor Samuel F.B. Morse took center stage among a group gathered in the U.S. Supreme Court chambers, housed at that time in the Capitol basement. Morse was demonstrating his electromagnetic telegraph to mark the official launch of a pathfinding service that reached 30 miles, from Washington to Baltimore. He clicked out dots and dashes to spell a Bible quote chosen by the daughter of the U.S. patent commissioner: “What hath God wrought.”

Sending and receiving a telegram required a code-skilled operator, who could transmit 30 characters per minute. Another operator on the other end was needed to translate the code, and unless the recipient came to the Baltimore train station a courier would be needed to hand deliver the message.

Thirty-two years later Alexander Graham Bell shouted into a mouthpiece: “Mr. Watson, come here—I want to see you.” It was an iconic moment that yielded another of history’s most famous quotes. The world press corps, on the other hand, paid no attention to whatever was said by the first shopper who prowled grocery aisles while conversing, by cell phone, with someone on the other side of the earth. Such is technological progress. Such are ever-higher expectations for the next gizmo.

Such is the easy danger of not paying enough attention to how new technology impacts society.

Continue reading What hath technology wrought?

JOBS! JOBS! JOBS!

Dr. John Psarouthakis, Executive Editor of www.BusinessThinker.com, Distinguished Visiting Fellow at the Institute of Advanced Studies in the Humanities, University of Edinburgh, Scotland, and  Founder and former CEO, JPIndusries, Inc., a Fortune 500 industrial corporation

If the 20th Century was the American Century, why does the 21st Century seem so daunting for America?  If we are still the globe’s leading manufacturer (and we are), why does globalization terrify us?  If the entire world sends its best and brightest to American graduate schools, why does our education system need reform?  Why is the most affluent nation mired in a stagnant economy?  Why do politicians of every stripe find maximum traction with empty chants of: “Jobs! Jobs! Jobs!”?

In this small but I hope meaningful book that I recently wrote I insist we must define our problems before seeking solutions.  I demonstrate, in as clear and enjoyable prose my editor and I can write, that a single problem (and opportunity) underlies all the above questions.

Just as our 19th Century farmer nation endured social upheaval but prospered in a massive shift to an urban and manufacturing 20th Century, we face a new upheaval today.  Both enormous transitions stem from the same all-powerful, irreversible force—technological progress.

This time around, I show, the great danger is that populist political rhetoric will strangle the free-market generator of wealth for all Americans, leaving us with a failed economy and a failed nation.  The American capitalist economic engine needs repair, now.  It must find new ways of sharing the wealth it creates—as it did via job creation in the 20th Century—or the politicians will ensure that the prevailing gloom will be warranted.

That challenge is THE TECHNOLOGY IMPERATIVE.

For the book: “The Technology Imperative: What Jobs, Jobs, Jobs, Really Means in the 21st Century”, published by Gavdos Press, September 2012, please go to gavdospress.com