Thursday, July 26, 2012

The New Artisan Economy
...While the idea creators—those who design iPhones and develop new drugs—will continue to be the drivers of prosperity, more than a few crumbs may fall to the workers who support them. For example, Moretti estimates that Microsoft alone is responsible for adding 120,000 low-skill jobs to the Seattle area, where the company is based. This is because of the support workers required to style the hair, cut the grass, and yes, build the houses, of all those Microsoft engineers and computer scientists. ...

... In the longer run, the bottom 20 percent—indeed the bottom 99 percent—will need to be retrained and re-educated to get a larger share of U.S. GDP. Eminent Harvard labor economist Larry Katz sees a future where many lower-skilled workers are employed in the service sector supporting America’s innovative class....