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High Road Capitalism: Transition Strategies and Challenges

Explore the shift from low road to high road capitalism, focusing on skill enhancement, profits, trade deficits, and worker organization in the USA. Learn the impact on competitiveness and the crucial role of transitioning strategies.

micahglass
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High Road Capitalism: Transition Strategies and Challenges

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  1. Lecture 11 Tuesday, October 9 High Road Capitalism • Announcements for the exam: • The exam will be in the regular Bascom room from 11-12:45, Thursday. • Review session: Wednesday, 12:00 - 1:15pm in SocSci 5208

  2. An example of a question about the statistics in the book

  3. A Economic Balance sheet for the United States at the beginning of the 21st Century

  4. AVERAGE WEEKLY EARNINGS (IN 2007 dollars, adjusted for inflation)

  5. Annual rate of growth of family income by income group 1947-79 compared to 1979-2005

  6. Productivity Average compensation Median compensation 2007 1973

  7. Patterns of Job Growth in the US, 1960s versus 1990s

  8. Imports, Exports, and trade balance as a percent of GDP, 1947-2007 Era of trade deficits

  9. What should be done? “Close off the low road, pave the high road, and help firms and workers move from the first to the second.”

  10. High Road versus Low Road Capitalism

  11. Problems moving from the low road to the high road

  12. The Relation of skill levels of workers to profits of firms Profits Low High Skill Level of Workers in a firm

  13. Two ways to increase profits Skill enhancement deskilling Profits Low High Skill Level of Workers in a firm

  14. High road Ability to compete in international competition Transition trough from low road to high road Low Road Time THE TRANSITION TROUGH TRAP

  15. The Training Deficit Trap: a free riding problem (from lecture 4 & 5) Training costs = $10,000 Extra Gross Profits with trained workers = $30,000 Net extra profits if you provide training and keep workers = $20,000 Net extra profits if you provide training and workers leave = -$10,000

  16. The anti-union trap: The relationship of union strength to competitiveness of firms Competitiveness Low High Strength of worker organization and participation

  17. The anti-union trap: The relationship of union strength to competitiveness of firms Competitiveness The USA today Low High Strength of worker organization and participation

  18. The anti-union trap: The relationship of union strength to competitiveness of firms continuing the low road Competitiveness Moving toward the high road The USA today Low High Strength of worker organization and participation

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