Jobs War: Post #5--Job Creation

Sources of Job Creation
a. The author points to three critical components of the next great breakthrough (like the Internet) that will create jobs. Those components are big cities, powerful local leaders, and great universities.
b. Cities: Several factors: 1) All important solutions are local—especially places like New York, Palo Alto, Seattle, Boston, Austin, etc. Young, smart talent gets drawn to cities with the right atmosphere for them, and they stay and make things happen; 2) The whole city gets involved in the effort; 3) Align efforts—need a regional or citywide strategic plan; 4) Don’t look to Washington for solutions. Its purpose was not intended for that reason. National leadership—regardless of party—doesn’t create sustainable policies for creativity and competition. Just the opposite.
c. Local Tribal Leaders: All prosperous cities have self-appointed talented people who get things done—call them Tribal Leaders. They’re philanthropists, social activists, business owners—all of whom step up and “do the right thing.” Note that they’re not elected or government officials. The real power comes from the Tribal Leaders. Think about what Warren Buffet means to Omaha or Bill Gates to Seattle. There are roughly 100 Tribal Leaders in a city and 100 of the most powerful cities in the country. Thus, there are 10,000 Tribal Leaders who will have to make the change in jobs or whatever becomes important to America in the future. Tribal leaders are responsible for electing strong, local political leaders. Weak local, state, and federal leaders = weak tribal leaders. Super mentors ignite entrepreneurs and innovators. Al Gore is a great example. While a Senator, he pushed the Internet through policies to become the massive economic boom for America.
d. Universities: Knowledge creation is at the core of a university. Also, universities create the right ecosystem for innovation and entrepreneurship. And if you look at the top 100 universities, you’ll find super mentors and job creation swirling around them.
e. The simple economic formula: 100 tribal leaders, 100 key cities, and 100 top universities will make most of the difference in the Job Wars!

Jobs War: Post #2--What people want

What people want: Jobs
a. Gallup conducts a World Poll to determine what is on the hearts and minds of the 7 billion people on earth. One of the most startling and consistent answers over the last few years is that what people want most is a good job. It’s that simple—and that profound.
b. This “good job” is 30+ hours a week of meaningful work. Thus, job creation around the world and especially in the U.S. should be central to our social and economic policies. While unemployment might be at 9%, Gallup also considers “underemployment” and their definition nearly doubles the rate of the economic threat.

Jobs War: Post #1--Overview

The Coming Jobs War by Jim Clifton (Gallup Press, 2011). Reviewed/summarized by Steve Gladis, Ph.D., January 2012.
Overview: The Coming Jobs War by Jim Clifton (Chairman of Gallup) is a very sober and instructive read. An organization with Gallup’s reputation has to be taken seriously, and their numbers about the economy are very serious. Here’s the cliff-notes summary: Currently the U.S. has the leading economy (GDP), with China #2. However, our GDP is only growing at 2% a year, China’s at 10%. Do the math, and the story’s more than sobering in the coming decades. According to Gallup’s research, job creation remains THE critical answer to the GDP growth problem. Also, small to medium-sized companies, not large companies, grow 99% of the jobs. The author argues that entrepreneurism and innovation are the very lifeblood of job creation and the economy. Clifton cites three key elements of such job creation: Cities, local tribal leaders, and key universities. To win the jobs and economic war, we need employees who are engaged. Currently, less than 1/3 of US workers are truly engaged, and 19% are actively (toxically) disengaged. Also, we need to view global, not just domestic, customers as our target market. We must get our arms around our schools, where 30% of K-12 students leave or delay graduation and where 50% of minorities drop out. Finally, we must fix healthcare, which is about to break the American economy—70% of the $2.5 trillion healthcare problem orbits around obesity-related disease! Note the entire GDP of Russia and India is only $1.5 trillion each. However, here’s the hope: We can win this jobs/ economic war, just like the Greatest Generation won World War II in the 1940s against Japan and Germany; just like the Baby Boomers won the technical economic wars in the 1970s-90s; and hopefully just like we will win the job wars in the 21st century. Clifton argues that will happen if we focus on our secret weapons: Behavioral economics (understanding what motivates people to act), entrepreneurship, and innovation. Job creation and entrepreneurship live together like twins, and anything we can do to cultivate entrepreneurs helps not only local cities, but also the nation, and the world—our new playing field.