Madonna and Economic Policy

Tom Peters

"Madonna runs a positive trade balance," I began an informal briefing for congresswomen and congressmen. "Two-thirds of her revenue comes from outside the United States. Welcome to the new, soft economy—every bit as potent as the old, hard one." Twenty-nine more points followed:

* All nations are pursuing the same economic strategy. The global battle cry is "value-added, knowledge-based, export-led economy." It's going to be one heck of a scrap.

* We deal from strength. Ninety-four percent of Americans work in industries that are more productive than Japan's.

* The much-maligned service sector is a national treasure. Our global lead in services productivity is stunning. Our positive services trade balance is enormous and growing.

* It's Asia, stupid. Sometimes I think we've ceded Asia's markets to the Japanese. Go (farther) West, young women!

* This is an epochal change. If you're not confused, you're not in touch.

* Churn is success. Economist Joseph Schumpeter called it "creative destruction." Progress is achieved through elimination (mostly inferior jobs) and creation (mostly valuable jobs).

* Failure is our secret weapon. "Failure is Silicon Valley's greatest strength," wrote journalist Mike Malone. No failure, no progress.

* Big-company job losses are just beginning. Corporate crash diets are painful but healthy.

* Midsize growth companies are our salvation. They are creating jobs (mostly good) and have become export stars.

* Immigration is a boon. Immigrant energy is spurring Silicon Valley, Miami, and Los Angeles as it spurred the East and Midwest a century ago.

* The "virtual corporation" is real. Disembodied companies, constantly changing shape and employing many contract and temporary workers, are a must in a volatile marketplace.

* Brains are in. Heavy lifting is out. That's as true in manufacturing as in banking.

* Education R Us. It had better be: The wage gap between the college grad and the high-school dropout is enormous and growing.

* Learning is a lifelong affair. Close the books when you finish formal schooling, and your future is dim.

* Community colleges are an unsung asset. A German-model apprentice system is not the answer to U.S. skills training. Beef up our potent community colleges instead.

* Education needs overhauling. Forget the Japanese approach. We need to foster imagination, not rote-learning.

* Our widest lead over global competitors lies on research-university campuses. Nourish them.

* Jobs and careers are changing. Lifetime jobs are dead. British management expert Charles Handy says 10 or 12 jobs and two or three different careers will be the norm.

* Kiss the nanny state goodbye. The world does not owe us a living. What happened to the American spirit of self-reliance?

* Benefit packages must mimic new job realities. We should encourage worker mobility. Part of the answer: pensions, training credits, and health-care benefits retained by individuals, not controlled by corporations.

* Research and development is key. If knowledge is economic power, then R&D is the engine of progress—for Nike and Time Warner, as well as Intel and Apple Computer.

* High tech can take care of itself. Heed pioneer venture capitalist Don Valentine: "To Washington I say, please do not help us. The world of technology is complex, fast-changing, unstructured, and thrives best when individuals are left alone to be different, creative, and disobedient."

* Tomorrow's information-highway system is more important than yesterday's interstate highway system. (That doesn't mean the government should build it.)

* Biotechnology, which may become bigger than computers, needs friends. Right now, we're in the catbird's seat: Don't let health-care reform throw out the baby with the bathwater.

* There's no place to hide. Want a brighter future for your children? Embrace free trade. NAFTA will cause dislocation, but stimulate a net increase in better-paying jobs. Besides, free trade is essential to global political stability.

* Investing offshore means more jobs at home. A solid base overseas is the surest route to market (and export) development.

* The world is more stable and prosperous because of the special Japanese-American partnership. Don't forget that.

* If fear leads to loathing, we lose. Beware name-calling (immigrants, trading partners) that makes us turn inward and mean-spirited.

* We must reinvent government. The world economy demands worker and corporate flexibility. To help rather than hinder, government must also become agile.

That ought to keep ’em all busy for awhile!