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John's World
Thursday, October 04, 2007
A machine that darn near misses...
A college buddy of my son at UMR, wound up at Monsanto. He recently sent Jack a link to a story about what he was doing at work. Visitors to the Farm Progress Show in Decatur, Ill,, last month who toured Monsanto's exhibit received an inkling of why Monsanto has a healthy number of mechanical engineers on staff. The company displayed state-of-the art machines used to screen for genes without damaging the seed. Way to go, Andy! I have frequently remarked that monstrous industrial organizations are routinely despised by farmers until our sons/daughters need jobs after college. We also conveniently forget huge businesses are made up of people just like us - only they know how to work in a group. Labels: education, technology Wednesday, September 05, 2007
Rethinking manufacturing - and farming...
An outstanding article in the WaPo (as linked by Cat0@Liberty) reset my conviction we are on our way to very few manufacturing jobs in the US. The United States makes more manufactured goods today than at any time in history, as measured by the dollar value of production adjusted for inflation -- three times as much as in the mid-1950s, the supposed heyday of American industry. Between 1977 and 2005, the value of American manufacturing swelled from $1.3 trillion to an all-time record $4.5 trillion, according to the Bureau of Economic Analysis.Color me surprised. I had acquired the hazy notion US factories were disappearing - not changing industries. The real problem is the same one facing much of our profession as well: the jobs with a future in the US are jobs requiring highly skilled workers. During the most recent decade, U.S. manufacturing has become increasingly oriented toward the middle and upper ends of the value-added spectrum. Opportunities abound for workers with skills or the willingness and wherewithal to acquire them. In fact, the title of the National Association of Manufacturers tenth annual Labor Day Report on the state of U.S. manufacturing is “Rising Incomes Cushion Economy,” and its subtitle is “Finding Highly Skilled Workers Remains a Challenge for Manufacturers.” It seems to me that rising wages should make more workers willing to get the skills, and the need to find highly-skilled workers should induce manufacturers to assist on the wherewithal front.We are pretty soft-spoken about educational standards or training requirements in agriculture. In fact, highly educated entrants into farming are often resented by colleagues as usurping a role that should be "reserved" for those who work hard and and possess more humble but admirable attributes. I mean, those guys could be doing hotshot jobs in the city, instead of displacing less qualified farmer wannabes. Indeed a significant number of present farmers are farming largely because they were not interested in educational challenge of occupations requiring degrees or other formal training. Nevertheless, I believe developments like the human resource needs in manufacturing are being mirrored in agriculture. In addition, the subsequent quantum leap in capital management skills needed, wild volatility, and rapid adoption of technology combine to select for farmers with a much wider and deeper knowledge base and skill set. In fact, the current boom (Why didn't I grow some wheat this year?) could make farms capable of bidding for the fabled "best and brightest" along with other professions. This sounds like a good idea until you realize we are becoming more intensely competitive at the same time. Having the "b & b" farm next to you is somewhat more sobering if you yourself are merely good and bright. Saturday, August 25, 2007
I think I hear the school bus honking...
If September is near, thoughts are turning to school and, as helpful as I find the college rankings at US News and World Report, this one might be more useful to most of us. From Radar magazine, the Ten Worst Colleges in the US: To be fair, we excluded community colleges, technical schools, and the kind of places that advertise in subway cars, limiting our search to accredited four-year institutions with brick-and-mortar campuses. We started by gathering statistics on academic offerings, admissions, and student life from a diverse array of sources, including Princeton Review, U.S. News, and the U.S. Department of Education. Then we factored in criteria like low SAT scores, incompetent professors, rock-bottom admissions standards, unbridled alcohol and drug consumption, rampant criminal activity, and dubious alumni. To complete the picture, we added reviews from online outlets like Students Review, Campus Dirt, and College Prowler. Finally, we tallied up the numbers in a variety of categories, ranging from worst Ivy to worst party school, and of course, the very worst college in the country. (Hint: The Moonies are involved.) Below, the nine colleges that made our dishonor roll. [More of a great read] (Hint - not good news for Spartans) Friday, May 11, 2007
When you sell hammers...
Everything looks like a nail. I have been following the discussions about wealth and income inequality for some time. Recently I ran across this thoughtful piece via a link on Greg Mankiw's blog. So instead of lamenting the increased earnings gap caused by education, policymakers and the public should focus attention on how to raise the fraction of American youth who complete high school and then go on for a college education. Solutions are not cheap or easy. But it will be a disaster if the focus remains so much on the earnings inequality itself that Congress tries to interfere directly with this inequality rather than trying to raise the education levels of those who are now being left behind. [More]The authors make a convincing case for investing in education, since difference in education levels seems to be a powerful factor in future income. The question is begged by these types of conclusions if the sliver of college grads earning the astronomical salaries were excluded, would the trend be as sharp? My hunch is an awful lot of college grads (liberal arts, teaching, business, etc.) don't enjoy the enormous salary differentials making college less of a good deal than "average statistics" would suggest. But wait, the authors are in the education business, i.e. college professors. Doesn't a whacking income inequality between people who use their products and those who don't bode well for higher education biz? Higher education does not often examine its own efficiency or value. What I do know is more dollars buys fewer classroom hours, and those are with fewer full professors. Grades are inflated, graduate skills have dropped, and in general a college degree does not imply the level of education it used to, in my opinion. All these outcomes have one standard solution from colleges: we need more money. Without the growing income inequality, education consumers might be pressuring colleges for a better product. With college competing with health care for Biggest Pain in the Wallet, customers may need reminding why they should fork out so much to put Morgan through Yale. No problem. We'll just turn to our unbiased Economics/Marketing Department. The last thing an academic study would be likely to show is poor return for your dollar from academics, I would guess. Other questions pop up: Is there an upper limit for how many college grads we can absorb? How does more money to higher education help those doing jobs for which college education has no real value? What does the rise of education competitors like India mean for those higher salaries in the future? (IT engineers are having a sobering reality check thanks to the ease of outsourcing work, for example.) If income and wealth inequality is a problem - and I tend to think it poses some social and political hazards - offering college as THE answer strikes me as simplistic. From where I stand, the problem calls for a farm subsidy, methinks. It's all in your perspective. Friday, February 16, 2007
Some are more equal than others...
(C'mon - you didn't expect me to yammer on about equality without quoting Orwell, didja?) As our now perpetual presidential campaign enters the desperate last 21 months, one topic batted around in economist circles and by amateurs like yours truly has been inequality. But I have certainly fallen into the unhelpful habit of not differentiating which measure of equality I'm talking about. For example, there is a growing inequality in asset distribution - who owns what. At the same time (and perhaps for the same reasons) there is a significant inequality in income which may or may not be growing (depending on whether you look at the US or the world), and income growth which definitely is widening. Foregoing the knee-jerk reaction of deeming all inequality growth a bad thing per se, we need to be careful which particular distribution we are ranting about at any given time. A wonderful post on an Economist blog - Free Exchange - helped me understand the importance of this distinction. I'm not sure that I care at all about the size of the gap between the rich and poor, provided that the poor have all the ingredients of a decent life. I don't think that they do, yet, in America or much of anyplace else, but I think the solutions to most of their problems lie elsewhere than in redistribution. Of course, I care about other inequalities that can be conferred by high socioeconomic status, such as extreme differences in power or autonomy, but I am very sure that those disparities cannot be rectified simply by taking money from the richer and giving it to the poorer. So it's hard to get worked up simply because CEO's have gotten a pay rise. I find this point very persuasive. Better access to education could mitigate many of the income and asset distribution problems, I believe. In fact, in an upcoming (probably April) issue of Top Producer, I will try to incorporate this factor into my idea of what a good safety net for farmers could look like. US Farm Report host John Phipps surfs the Web so you don't have to...
About MeJan and I farm 1700 acres near Chrisman, IL. I have also written humor and commentary for Farm Journal and Top Producer for 13 years. Please visit my website (www.johnwphipps.com) to learn about my speaking services for your group's next meeting. ARCHIVES
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