On October 18th, 2017, former Secretary of Labor, Robert Reich, came to Western Kentucky University to speak on the state of our economy. Reich began by discussing how the unemployment rate is down, the stock market is up, and there appears to be economic growth; yet, people are still unhappy (Reich, 2017). The reason for this unhappiness, Reich claims, is because we are paying attention to the wrong indicators. For one, the labor participation rate is very low. This indicator takes into account those who are of working age and have jobs. Reich notes that this rate is so low because many have dropped out of the workforce altogether. This population would not be counted in the unemployment rate as these people aren’t unemployed. They don’t meet
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He stated that we must embrace globalization. In order to do so, it must be acknowledged that because things are now made in many different places, with parts coming from all around the world, what is most important is the added value one can bring. For instance, because of Germany’s extreme precision, they were the best producers of hips for hip replacements. This cleverness and added value stems from the education of those creating the product. Similarly, Reich noted that technological advancements are also rooted in education. As technology has advanced, many jobs are no longer available because they have been replaced by machines that can do the job for them. Thus, our ability to innovate and create new jobs must be able to keep up with the rate at which new technology is developing. Such an ability depends one’s aptitude to solve problems, an added value tied to education. Lastly, Reich discussed how the demographics of the baby boomer generation has created problems for current generations. The baby boomers are just now starting to hit retirement age; however, many aren’t actually retiring. The Great Recession occurred during their peak earning years, thus, many are having to continue to work. This situation leads to stagnating wages because promotions that would normally become available as people retire are no longer
He stated that we must embrace globalization. In order to do so, it must be acknowledged that because things are now made in many different places, with parts coming from all around the world, what is most important is the added value one can bring. For instance, because of Germany’s extreme precision, they were the best producers of hips for hip replacements. This cleverness and added value stems from the education of those creating the product. Similarly, Reich noted that technological advancements are also rooted in education. As technology has advanced, many jobs are no longer available because they have been replaced by machines that can do the job for them. Thus, our ability to innovate and create new jobs must be able to keep up with the rate at which new technology is developing. Such an ability depends one’s aptitude to solve problems, an added value tied to education. Lastly, Reich discussed how the demographics of the baby boomer generation has created problems for current generations. The baby boomers are just now starting to hit retirement age; however, many aren’t actually retiring. The Great Recession occurred during their peak earning years, thus, many are having to continue to work. This situation leads to stagnating wages because promotions that would normally become available as people retire are no longer