The Path to Prosperity: Lessons in Knowledge, Specialization, and Global Markets

2. Looking for Prosperity Bruce Yandle Dean Emeritus, Clemson University

3. Prosperity, Specialization &Profit WHAT’S HOT & WHAT’S NOT

4. Knowledge & Specialization will Shape Us The Global Boom will Pull Us Along The Nation will be Limping Forward We will Search for Pockets of Prosperity A Few Lessons Learned

5. World- and Firm-Shaping Forces Expanding markets bring economies of scale, division of labor & knowledge, and specialization. Falling knowledge costs lead to smaller, more specialized firms, units inside firms, and to disintegration. Emerging disruptive opportunities challenge the status quo inside firms but may point to future prosperity.

7. 250,000 Years Ago Somewhere in Africa, our ancestors took on behavior that cannot be explained by genetic material. They began to live beyond their biological limits. They got connected to markets and trade. They began to form linkages with the collective brain. Matt Ridley. The Rational Optimist

8. The division of labor is limited to the extent of the market. Adam Smith, 1776

11. 1924: A Record is Set: 10 Million Model T Fords

12. 1918 1920

13. NOTICE To the Motoring Public Also Garages, Repair Shops, and Truck Owners. We Have Been Appointed Beaver County Distributors for Gillium Roller Bearings, Strom Ball Bearings and Ahlberg Reground Bearings Having Learned from Experience that there Should be a Central Location in Beaver Valley to give Immediate Service, We Have Gone to Considerable Expense and Installed a Complete Line of Timken and Continental Parts, which Service has No Equal in Beaver Valley. Having Convinced Ourselves that this Service will be Appreciated, We respectfully Solicit your Trade. Our Stockroom is Open Day And Night and We can assure you of Our Cooperation at all Times H.H. Cable BEAVER, PA Bell Phone 991 J—Rochester 344 M “Service that Satisfies” The Daily Times, Monday, June 23, 1924

14. SpecializationDisintegration What do Daisy Air Rifle, Timken, and McGill have in common?

19. North Korea vs. South Korea 2011 Per Capita Income = $1,800 2011 Per Capita Income = $31,700

22. WHAT’S NOT SO HOT?? • U.S. Economy

25. U.S. Report Card Lawrence H. Officer and Samuel H. Williamson"Annualized Growth Rate and Graphs of Various Historical Economic Series," MeasuringWorth, 2011.URL: www.measuringworth.com/growth/ Accessed 03/22/12.

26. WHAT’S GETTING HOT?? • Retail Sales • Housing • Manufacturing • Wholesaling • Employment

28. 2016

31. 2014

32. Which Industries???

33. Percent Change in Value Added by Industry Oil & Gas Mining Support Mining Durables Nondurables Wholesale Trade

34. What’s Hot? Steel, Aluminum, Computers & Electronics, Machinery, Aircraft

35. U.S. Natural Gas Reserves, 2010

37. What’s holding us back?

38. Billion

43. Feeling Over-Regulated These Days? What about the Evidence? Shall. Must. May not. Prohibited. Required.

45. Looking For Prosperity