tag:blogger.com,1999:blog-5936637281134795592.post4848260106825141988..comments2024-03-08T08:55:52.985-08:00Comments on Whispers from the Edge of the Rainforest: Arghhhhhh........Unknownnoreply@blogger.comBlogger1125tag:blogger.com,1999:blog-5936637281134795592.post-52426421272429531192010-03-19T09:22:07.331-07:002010-03-19T09:22:07.331-07:00Whisperer,
Thanks as always for a great series!
...Whisperer,<br /><br />Thanks as always for a great series!<br /><br />As I watch and ponder over events since 2008, I have grown more pessimistic about the overall lack of understanding of the fundamental nature of the problems and the regressive nature of the solutions proposed. Most people wish or believe the good old days will return. What they fail to realize is we are experiencing effects of a paradigm shift. While all the focus is on China and the US, changes and their impact are global. I will try to be pithy and outline a few factors that I think deserve more attention and creative solutions.<br /><br />1. Automation - The effects are twofold. Firstly, it increases productivity and thus reduces the aggregate need for labor to produce most things needed to achieve a reasonable standard of living. Secondly, it reduces the skill levels needed for production. This has a more significant impact on developed countries in general because their comparative advantage is diminished. Countries like Germany and Japan are affected as well, but due to their cultural emphasis on quality and technical training, their industrial base has not been eroded as much as in the US and Canada. Complacency and specious arguments in defense of the status quo in education in the US and Canada will further leave us behind.<br /><br />2. Inequity in income distribution - The potential demand for "stuff" and services, be they a matter of need or hedonistic, is huge when we think about the number of people who still have a low standard of living and thus could have more. The big question is: What can they produce or provide so they can exchange their efforts for things they want? This is a factor of four things that will have different effects on different cultures: (1) A pragmatic definition of what constitutes an acceptable standard of living (How much do we reasonably need? Should everyone aspire to the "Western" lifestyle or is that too extravagant?); (2) The relative values assigned to different forms of productivity (Why do we pay bankers so much more than miners? Is that discrepancy warranted?); (3) Has automation simply rendered some of us redundant? and (4) How much does a given society emphasize on self-reliance, i.e. making the most of one's potential when given a fair chance instead of relying on someone to provide for them.<br /><br />While cultures in the world encompass a wide range of common or antagonistic values, in a globalized economy, it really does boil down to who's willing to work harder and spend and save more wisely. In that regard, Canada has some serious soul searching to do.ATPnoreply@blogger.com