Jobs, Wealth and Values in a Globalized Economy

Dominican OLLI Winter 2013 Saturdays Jan. 12-Feb. 16, 10:00-11:45 am

Rod Handeland Instructor –, (Page 1/5)



I. Globalization development to 1948

-3000 BC Dawn of Civilization


-1500 to -400 BC Phoenician city states of Eastern Mediterranean


-400 BC to 1250 Greeks, Romans, Arab Empires contribute to advance to globalization


1250 to 1914 Rise and dominance of Europe: Renaissance, Discovery, Industrial Revolution


1848-1948 Europe Empires to World Wars, US Manifest Destiny, Asia Stirrings


1948-1975 Explosive growth of globalization in US economic golden age


II. Acceleration of Globalization after 1975

1945-1985 Rise of Globalization Enabling Technologies


Jobs, Wealth and Values in a Globalized Economy

Dominican OLLI Winter 2013 Saturdays Jan. 12-Feb. 16, 10:00-11:45 am

Rod Handeland Instructor –, (Page 2/5)


1945-1995 Emergence of Asia into Developed World: Japan – Rim Tigers – China – Soviet Collapse


1992+ Technology and construction bubbles mask US manufacturing drop, IT productivity, 2001+ Security cost


Non aligned nations, import substitution, central planning attempts, state owned businesses

Economic reform 1978 China, 1985 USSR, 1991 India. Political opening 1947 India, 1985 USSR, 1989 Tiananmen Sq

1971 End of US gold standard, 1989 Berlin Wall E Europe free, 1991 Collapse of USSR


III. US Wealth, Jobs, Productivity Rises, Values, Social and Economic Systems Evolve


US Wealth – Creation from productivity, innovation and financial shuffling

Progression from basic resources to inventions to big business organization, processes, automation

Automation today as boon to big organization or revival of small entrepreneurial new businesses

Troubling legacy of financial service contributions and rewards, capital investment and tax based wealth distribution



1600+ US Jobs – Challenges from vast job creation and changes dating to Industrial Revolution

1600+Individual crafts, shops, farms

1865+ Rise of big factories, industries, large capital investment, no worker rights

1900+ TR trust-busting, worker right progress, unions,

1919+ Roaring 20’s, Depression, Arsenal Democracy, Boom to 1970, 1970’s+ World recovery, Globalization



Jobs, Wealth and Values in a Globalized Economy

Dominican OLLI Winter 2013 Saturdays Jan. 12-Feb. 16, 10:00-11:45 am

Rod Handeland Instructor –, (Page 3/5)


1865-1945 US expansion of industrial north, land resource west and south, new technologies, worker skills

1945-1975 US Near Full Employment, Strong Economic Growth


1975+ Return of international competition offset by tech: union decline, new business, shift to service from mfg


IV. US Cost of Worker Benefits, Government Regulations and Public Policies

Milestones of equal opportunity: 1863 Emancipation, 1918 Women suffrage, 1941 gov contracts, 1945 GI Bill, 1948 milt deseg

1954 School deseg, 1963 EqualPayAct, 1964 CivilRightAct, 1965 EEOC, 1967 AgeDiscrim ADEA 40-65, 1986 ElimAgeCap

1986 Immig reform, control, 1990 ADA, Many court cases, legislative clarifications, immigration issues


Non Wage Benefits and Standards of Employment

Benefits for WWII labor shortages, post war inflation control, econ growth premise

Short term solution with long term implications and cost burdens, current health US vs OECD

Non US uses gov rather than companies as providers


Wages, worker incentives, environment, other regulations

Complexity of comparability of tax rates and gov costs for country competitiveness

Varying costs and standards of quality of life regarding pollution, standard of living, worker protection

Benefits to US consumers from low priced, high quality, wide selection of imports


Technologies facilitating and promoting globalization

Tech leadership in energy, climate, life science crises, opportunities? China, Europe incentives, priority

Tradeoffs between importance of environ, cleanup, warming, worker rights vs econ growth and job creation

Question of relation between capitalism, rapid econ growth, productivity and democracy vs political control


Jobs, Wealth and Values in a Globalized Economy

Dominican OLLI Winter 2013 Saturdays Jan. 12-Feb. 16, 10:00-11:45 am

Rod Handeland Instructor –, (Page 4/5)


Values and economic policies affecting globalization


Government policies determining rate of growth of globalization



V. US Consumer, Investor, Worker Issues Determine Globalization Pace

Economic decisions of largest unified US consumer block demand benefits of globalization and imports

Manipulation and trading by countries and fin services add little compared to new products, services, business processes

Globalization requires free flows to create most value and benefits for all, but threatened by nationalism, vested interests


Consumer demand for widest selection and range of prices, qualities, features, styles


Worker decisions related to income distribution, disposable income, debt levels, future expectations


Investor view of returns related to globalization, taxation, restrictions, risk


Financial sector benefits and limits in globalization and wealth creation


Jobs, Wealth and Values in a Globalized Economy

Dominican OLLI Winter 2013 Saturdays Jan. 12-Feb. 16, 10:00-11:45 am

Rod Handeland Instructor –, (Page 5/5)


VI. Country Abilities, Goals, Policies Determine Globalization Participation Level


Europe -1700’s Industrial Rev birth in UK. 1990+ US ascent due to resources, system, empire end, wars

Effect of EU: new, old members; Germany, UK; economic, life values

Med vs N Sea countries, social safety nets, initiative, innovation, change from past



Little other than resources left in USSR to build economy, Cold War competition result in Central Planning in LDC’s

Complexity of converting resource wealth to productive economy, social benefits, wealth creation

Chasm between resource rich and poor countries with little other econ progress or integration

Imperative of education, tech skills, ingenuity, time, infrastructure to build cohesive growth and progress


Latin America -Preoccupation with Cuba, revolution in Cold War impedes progress, solutions

Power and potential of ABC south 3 different approaches

Narcotics cancer of Andes, Caribbean, Mexico fueled by US demand; Legalization, drug gangs, crackdown


Asia -Remarkable stability and continuity of enormous China, India despite 1947 Partition, 1949-76 Mao

Japanese 1854 opening to West, 1904 Russia defeat, WWII co prosperity, mfg recovery, 1970’s exports, 1991 collapse

Chinese of Rim of Asia check Japanese, inspire mainland China, imperatives of growth to spread money economy


Summary - Enormous economic progress associated with serious social dislocations


Summary Discussion - Public policies to maintain values and standards as well as protect workers

Jobs, Wealth and Values in a Globalized Economy

Dominican OLLI Winter 2013 Saturdays Jan. 12-Feb. 16, 10:00-11:45 am

Rod Handeland Instructor –,


Selected Recently Published Books on Globalized Economy

New Industrial Revolution: Consumers, Globalization and End of Mass Production, Marsh, 2012

Why Nations Fail: Origins of Power, Prosperity and Poverty, Acemoglu, Robinson, 2012

Breakout Nations: In Pursuit of Next Economic Miracles, Sharma, 2012

Makers: New Industrial Revolution, Anderson, 2012

Innovation Economics: Race for Global Advantage, Atkinson, Ezell, 2012

Obama and China’s Rise: Insider’s Account of America’s Asia Strategy, Bader, 2012


Crisis of Capitalist Democracy, Posner, 2010.

Post American World, Fareed Zakaria, 2009.

Globalization, Bruce Greenwald, 2009.


Sonic Boom, Gregg Easterbrook, 2009,

Splendid Exchange, William Bernstein, 2008.

Hot Flat and Crowded, Thomas L. Friedman, 2008.

World is Flat, Thomas L. Friedman, 2007.


Global Capitalism: Fall & Rise in 20th Century, Jeffrey Frieden, 2006,

Moral Consequences of Growth, B. Friedman, 2006.

Revolutionary Wealth, Alvin Toffler, 2006.


Three Billion New Capitalists, Prestowitz, 2005.

2010 Meltdown: Solving Impending Jobs Crisis, Edward Gordon, 2005,

End of Poverty, Jeffry D. Sachs, 2005.


Making Globalization Work, Joseph Stiglitz, 2005.

Globalization a short history, J. Osterhammel, 2005.

Origins of Value: Financial Innovations to Capital, William Goetzmann, 2005.

In Defense of Globalization, Bhagwati, 2004.

In Praise of Empires: Globalization and Order, Lal, 2004.

Globalization and Its Discontents, Joseph Stiglitz, 2002

End of Nation States, Ken Ohmae, 1995.


McKinsey Global Institute Articles and Publications on Globalization and Offshoring

McKinsey Quarterly Globalization Articles,

McKinsey What Matters Essays on Globalization,

McKinsey Quarterly Outsourcing and Offshoring,


Above on line links and Recent Articles with on line links