Building Wealth: The New Rules for Individuals, Companies, and Nations in a Knowledge-Based Economy

Overall, it is a fascinating read for anyone interested in economics, or how rich countries become rich. Lots of good facts which reflect on the competitive, and opportunistic capitalist paradigm we currently live in. 1) There has been significant change in the economic landscape, and that change continues to accelerate. Before the industrial revolution, 98% of the world's population had income only from farming. Now less than 2% are farmers.2) The world is increasing a global market. Coca Cola gets 80% of its revenues from outside the United States.3) The gap in wealth continues to widen. - Bill Gates market value is the same as the poorest 110,000,000 Americans. - In the United States, the average CEO pay is 212x the average worker.- The top 1% of people in the US own 40% of the total wealth.- Africa GDP is the same as it was in 1965. Has not changed in 35 years.4) We are all busier. With the invention of electricity, the average hours of sleep dropped from 9 hours to 7 hours a day.5) Old companies must destroy themselves (re-invent themselves) in order to stay competitive and grow. Also, individuals must constantly change and grow to remain competitive. If not, they will fall behind.6) Capitalism is a tough game. The number of businesses failing (88% a year) is almost as many as new business are formed. Wealth is constantly being transferred from one group ~ to another.7) There are many basic ingredients to create wealth. Some are cultural (like entreprenuership), some are created and enforced by the government (intellectual property, law and order, infrastructure), some are learned by the individual (skills, knowledge)8) Each country, and region has its strengths and weakness. In order to build wealth for the future, each country must act differently:- Japan: Clean up the banks, bring in professional management, restore government credibility, and create internal growth. Japan is too big to play the export game anymore.- US: Break the two-tier society (rich and very poor) by improving education for more skilled workers, and investing more in infrastructure- Europe: Encourage entrepreneurs and corporate flexibility9) Wealth is created when there is a disequillibrium (imbalance) in technology, or society. When there is change, there is opportunity ~ because wealth is being transferred. 10) Know your weakness and go where that weakness is not important.

Overall, it is a fascinating read for anyone interested in economics, or how rich countries become rich. Lots of good facts which reflect on the competitive, and opportunistic capitalist paradigm we currently live in. 1) There has been significant change in the economic landscape, and that change continues to accelerate. Before the industrial revolution, 98% of the world's population had income only from farming. Now less than 2% are farmers.2) The world is increasing a global market. Coca Cola gets 80% of its revenues from outside the United States.3) The gap in wealth continues to widen. - Bill Gates market value is the same as the poorest 110,000,000 Americans. - In the United States, the average CEO pay is 212x the average worker.- The top 1% of people in the US own 40% of the total wealth.- Africa GDP is the same as it was in 1965. Has not changed in 35 years.4) We are all busier. With the invention of electricity, the average hours of sleep dropped from 9 hours to 7 hours a day.5) Old companies must destroy themselves (re-invent themselves) in order to stay competitive and grow. Also, individuals must constantly change and grow to remain competitive. If not, they will fall behind.6) Capitalism is a tough game. The number of businesses failing (88% a year) is almost as many as new business are formed. Wealth is constantly being transferred from one group ~ to another.7) There are many basic ingredients to create wealth. Some are cultural (like entreprenuership), some are created and enforced by the government (intellectual property, law and order, infrastructure), some are learned by the individual (skills, knowledge)8) Each country, and region has its strengths and weakness. In order to build wealth for the future, each country must act differently:- Japan: Clean up the banks, bring in professional management, restore government credibility, and create internal growth. Japan is too big to play the export game anymore.- US: Break the two-tier society (rich and very poor) by improving education for more skilled workers, and investing more in infrastructure- Europe: Encourage entrepreneurs and corporate flexibility9) Wealth is created when there is a disequillibrium (imbalance) in technology, or society. When there is change, there is opportunity ~ because wealth is being transferred. 10) Know your weakness and go where that weakness is not important.

Building Wealth delivers the same level of analytical depth and breadth that Thurow's readers have come to expect. Excellent insights are drawn from a truly impressive set of research efforts. Lester Thurow assimilates a hugely broad set of general and industry-specific research into what is essentially a series of essays centered on the theme of explaining relationships within the "wealth pyramid." Great reading for anyone looking for a little perspective and context in which to frame today's hyper-speculative technology stock boom. Thurow’s analytics provide a good refresher on international and traditional economic theory. Building Wealth is a solid sounding board that reflects characteristically strong direction for public policy. Fun read, and excellent conclusions.

As an analysis of the strengths and weaknesses of the major economies and the global system in the emerging knowledge economy, this could hardly be bettered. It is very well written and avoids economist's jargon. Whether or not you agree with the author's underlying assumptions, the book is essential reading for anyone concerned with either global business or national or international policy. It is a 'must read'. Readers should however be aware of the underlying assumptions about the goals of society, many of which are being challenged. In effect, Thurow is describing a particular scenario in which the relationships that he specifies are dominant. Other scenarios are equally plausible, in which these relationships do not hold.Thurow is arguing for a capitalism in which state or societal intervention is not only acceptable but necessary, provided that it is directed to supporting growth by correcting the failures of laissez-faire capitalism and not to direct income redistribution. The book ends with 'A Salute to the Builders'. Great civilisations, says Thurow, are those that have been great builders. It is said that there are two roads to happiness. One is to be content with what you have, the other is to get what you want - the distinction between what Daniel Quinn in Ishmael called the 'leavers' and the 'takers'. Thurow belongs squarely with the second group. The 'great debate' developing is between those who. like Thurow, take it for granted that economic values encompass all the values that need to be taken into account and those who regard non-economic values as more important. They are not necessarily mutually exclusive, but real effort is needed to reconcile them. It is not enough to simply dismiss one set or the other as being 'inferior'.