Thanks very much for this Sally... It is an argument that has been waiting
to be made for almost a generation -- going back to the earliest days of
automating white collar work in offices.
 
The question is where to go with this... As I mentioned in the blogpost I
pointed out to Lawry, the issue being raised here is probably most immediate
in the MENA revolution countries since the revolution there was in large
part by youth against their immediate situation of unemployment, including
the unemployment among educated youth. 
 
The solution that will need to be found will not be the easy one (sufficient
only to postpone the requirement to address the issue directly) that is how
to create meaningful employment for vast numbers of young people when the
solutions of "modernization" i.e. neo-liberal privatization, automation,
outsourcing etc. have (even if corruptly) been partially introduced already
over the last half dozen years at the urging of the usual gang of Big Four
consultatns, World Bank, IMF, USAID etc.etc. (I've discussed this to a
limited degree in a different blogpost on Tunisia http://wp.me/pJQl5-4o
 
My feeling is that there will be a need to change the paradigm and go for
intensification of human service delivery (with ICT supports) and withdrawal
from global markets especially for services and very likely the use of
alternative currencies to pay for this through local exchange systems rather
than globally convertible ones.  It will be wrenching and may not be
possible but the current track to my mind, at least in those countries and
others (with the likely exception of China and possibly India) is more or
less completely blocked.
 
Nothing of this is of course, possible in the short run in the US--we've
seen the reaction to the beginnings of this for years there already with the
vast increase in the numbers incarcerated, the dumbing down of the education
system which reduces the demand for intellectually fullfilling jobs, and the
externatlization of the anger onto immigrants.
 
Mike

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OPINION   | March 07, 2011 
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Columnist:  Degrees and Dollars 
By PAUL KRUGMAN 
The hollow promise of good jobs for highly educated workers. 
        
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