11.6: The Transformation of Economic Systems

 The Economy: Work in the Global Village If you are like most students, you are wondering how changes in the economy are going to affect your chances of getting a good job. Let’s see if we can shed some light on this question. We’ll begin with this story: “Not Monday already,” Kim groaned as the alarm went off. “There must be a better way of starting the week.” With her eyes still closed, she pressed the snooze button on the clock (from Germany) to sneak another 10 minutes’ sleep. In what seemed like just 30 seconds, the alarm once again shrilly insisted that she get up and face the week. 364 Still bleary-eyed after her shower, Kim peered into her closet and picked out a silk blouse (from China), a plaid wool skirt (from Scotland), and leather shoes (from Italy). She nodded, satisfied, as she added a pair of simulated pearls (from Taiwan). Running late, she hurriedly ran a brush (from Mexico) through her hair. As Kim wolfed down a bowl of cereal (from the United States) topped with milk (from the United States), bananas (from Costa Rica), and sugar (from the Dominican Republic), she turned on her kitchen television (from Korea) to listen to the weather forecast. Gulping the last of her coffee (from Brazil), Kim grabbed her briefcase (from India), purse (from Spain), and jacket (from Malaysia), left her house, and quickly climbed into her car (from Japan). As she glanced at her watch (from Switzerland), she hoped that the traffic would be in her favor. She muttered to herself as she pulled up at a stoplight (from Great Britain) and eyed her gas gauge. She muttered again when she pulled into a Shell station (a Dutch company) and paid for gas (from Saudi Arabia), because the price had risen over the weekend. “My paycheck never keeps up with prices,” she moaned. When Kim arrived at work, she found the office abuzz. Six months ago, New York headquarters had put the company up for sale, but there had been no takers. The big news was that both a Chinese company and a Canadian company had put in bids over the weekend. No one got much work done that day, as the whole office speculated about how things might change. As Kim walked to the parking lot after work, she saw a bumper sticker proclaiming “Make America Great Again: Buy American.” “Good advice,” she said to herself. “If people were more like me, this country would be in better shape.” The Transformation of Economic Systems 11.6 Emphasizing inequality, summarize the broad historical shifts in economic systems. Although this vignette may be slightly exaggerated, many of us are like Kim: We use a multitude of products from around the world, and yet we’re concerned about our country’s ability to compete in global markets. Today’s economy—our system of producing and distributing goods and services—differs radically from past economies. The products that Kim uses make it apparent that today’s economy knows no national boundaries. To better understand how global forces affect the U.S. economy—and your life—let’s begin by summarizing the sweeping historical changes that have led to the society we live in today. Hearing from Students The Economy Play Hearing from StudentsThe Economy