While reviewing the June/July 2011 issue of Fabricating & Metalworking I came across the letter from the editor entitled ‘Closing the Wall Street Casino’. The title intrigued me so I read on and learned that an excellent business article had been written by a well-known economist, Peter Morici, which gave a terrific analysis of the impact of Wall Street on career paths chosen by college students. See what you think!
In his article, Mr. Morici said “Americans expect carnivals and casinos to be stacked against them……but capital markets are where the nation’s savings are supposed to be put to best uses, drive growth and create opportunities for the next generation.” But that’s not what’s been happening. For many years too much money and talent has been invested into finance – like designing the next complex derivative – instead of into physics and real engineering that would invent new materials, design electric cars and other products or services that would help define US global competitive success.
Mr. Morici points out that while the best business schools are overwhelmed with applicants, engineering colleges depend on students from China and Asia who will return to their homeland and compete with American businesses. And on top of this, when venture capital and stock investors look abroad for their best returns that leaves small and mid-sized US companies not able to find the capital they need to expand, invest in new ideas and create jobs. Mr. Morici says “The Wall Street casino has misdirected what capital is invested in the U.S.”
So how much more competitive would the U.S. be today if instead of investing in building houses there had been more investment in building things? How many more good paying jobs would Americans have if all those homes had never been built – or if all that money had been redirected and invested in new technologies or expanding solid US companies?
Practices like robo foreclosures and selling shaky securities continues to be under investigation but according to Mr. Morici one thing is for sure; “those practices handicap American capitalism in global competition and undermines prosperity.” Hopefully college students of today & tomorrow will see that making things is a much better career path than fraud.
Do you agree with Peter Morici? Why or Why Not? We look forward to discussing this important topic with you so please give us your comments. And thanks for reading EVERYTHING’S CONNECTED.
Have a question related to cord grips, electrical connectors, manufacturing or or anything else related to the industry? Or, do you have something you’d like to see us blog about? We’d love to hear from you! Send us an email through the contact form below.
[contact-form-7 id=”781″ title=”Contact form 1″]