Archive for June 2009


June 10, 2009

I promised you awhile back that I would comment on Robert Reich’s story on his blog “The Future of Manufacturing”  a three parter that will make your blood pressure go to a zillion and your eyes bleed.

Here are the link to his three posts.





THIS LINK IS TO A 3 PAGER FROM REICH’S BOOK THE WORK OF NATIONS. It explains what the three jobs of the future are. GO #65 ON THIS GOOGLE SEARCH PAGE(IT’S A PDF)

Now you have a choice you can go read all of Reich’s BS realizing that this theory is at least 20 years old, or you can read my take on it .

SO HERE”S MY TAKE:  Reich classifies future work into 3 categorises  1. Routine Production Work -he describes as what we call production line workers.  (25% of the work force)  2.In Person Services-comprised of burger flippers, Walmart slaves, taxi drivers house cleaners. (30% of work force) He throws auto mechanics in this mix (obviously he has never worked on a modern car)  and last buy not least his pet group #3. consisting of the following:

Included in this category are the problem-solving, -identifying, and brokering of many people who call themselves research scientists, design engineers, software engineers, civil engineers, biotechnology engineers, sound engineers, public relations executives, investment bankers, lawyers, real estate developers, and even a few creative accountants. Also included is much of the work done by management consultants, financial consultants, tax consultants, energy consultants, agricultural consultants, armaments consultants, architectural consultants, management information specialists, organization development specialists, strategic planners, corporate headhunters, and systems analysts. Also: advertising executives and marketing strategists, art directors, architects, cinematographers, film editors, production designers, publishers, writers and editors, journalists, musicians, television and film producers, and even university professors.(20% of work force)

Unless my math is really bad that leaves 25% of the work force unemployed.  Great Plan !!

Now please take note of Reich’s group 3, in this group you will find the big thinkers that have destroyed our economic system with their manipulation of the numbers, building investment devices they knew would blow up.  Giving mortgages to people they knew would have to be foreclosed on, took those mortgages and bundled them into securities  (CDO’s) had the rating companies lie about their rating, sold them as AAA  packages, (CDS’s) and then sold insurance for much more than the package was worth so when it defaulted they made a multiple of the profit of the original package.  They sold them as security’s as safe as T-Bills to lazy Pension Fund managers, Retirement Accounts, and other banks all of which should have known better.

Also in this group you find the whiz kids who are destroying the print media by using leveraged buyouts to get bigger and therefore taking on huge debt that at the slightest downturn cannot service.  These genius’s did this to a wide range of business’s .  Guys like George Romney running Hedge Fund money bought and then destroyed business after business.

Now on to the bankers , accountants and other thieves:  The bankers had it made legal to go to leverage of as high as 100:1 so they could play in the derivative markets.  Sell all those junk mortgages, package them as CDO’s and sell them to the pigeons out there throughout the world.

On to outsourcing:  Bean counter, lawyers, CEO’s and other Brainiacs in this group using their very high math skills figured out they could build widgets in China for a lot less money because of cheap labour , and lax regualtion.  These folks were looking out for only themselves and could less about the people they were destroying in the process.

I think he needs to add another category #4 LIARS , THIEVES, AND OTHER CROOKS.. Oh my goodness that would include at least half of cat 3.

As most economists in the recent past , I beleive Mr. Reich is dead wrong about the makeup of the future workforce.  I believe he totally igonores the reality of Peak Oil, Peak Natural Gas, Climate Change , Peak Economics’s, Peak Water and most other Natural Resources.   Instead of a whole slug of brainiacs we will need a lot more who can , farm, repair stuff, and simply return to the skills of yesteryear.  The whiz kids might very well be doing jail time.  For after all life “IS NOT THE PURSUIT OF PROFIT AT ANY COST”  It is much , much more.