Working in Modern Society SOC 300

Working in Modern Society Name University Course/Subject Professor Date Significant changes are in fact evident through the modern age of America, especially in terms of its economy. Since the 1980`s, three factors can be attributed to the successful reconstruction of the US economy: globalization, the creation and application of new technologies, and the shift to a knowledge-based economy CITATION Bru02 \l 1033 (Lehman, 2002). As these changes occur from a general perspective, so it has as well from a marginal perspective. Consequently, this accounts for the overall reform of working in modern society. The course of action for the work setting in the modern society is now based on their acquirement of advance technology and well-educated minds CITATION Ian06 \l 1033 (Brinkley, 2006). Thereon, knowledge has been recognized as indeed a valuable asset to the rise of the US economy. As a matter of fact, the intellectual domain has become their competitive edge through the 21st century CITATION Bru02 \l 1033 (Lehman, 2002). The higher the level of education achieved, the higher the probability of financially earning more; thus, education is regarded as the best investment to be economically viable as well as to be deemed personally valuable to society CITATION The08 \l 1033 (The Federal Reserve Bank of Dallas. San Antonio Branch., 2008). Sellens (2009) summarizes it as follows: "These days, economic activity (production, distribution, exchange, and consumption) is undergoing a process of profound transformation, which we can summarize as having started with the migration from an industrial economy towards a new structure characterized by the decisive importance of information, communication and knowledge streams" At the outset, the term ‘knowledge` has quite an ambiguous effect, particularly as a foundation for an economic model. Today, society is referred to as an ‘information society` for its high regard for data, statistics, and all forms of fact; however, it must noted that ‘information` in itself has not a similar connotation as with ‘knowledge`, in this case. In point of fact, knowledge has a wider range of conception in relation to information. Additionally, it has been categorized accordingly to distinguish the types of knowledge that there are and on which respects of society they are applicable. As such, OECD (1996) distinguishes them as: ‘know-what` which refers to knowledge as facts; ‘know-why` which refers to scientific knowledge of the principles and laws of nature; ‘know-how` which refers to skills or the capability to do something; and ‘know-who` which involves information about who knows what and who knows how to do what. Such distinction is made for a more systematic approach towards this newly emphasized economy. Then again, for some, the idea that the current economy is in fact one that is knowledge-based may not be true at all; after all, isn`t knowledge an essential through the development of an economy in whatever state? It is no original idea either as Adam Smith had, in his time, noted of "…new layers of specialists who are men of speculation and who make important contributions to the production of economically useful knowledge" CITATION OEC96 \l 1033 (OECD, 1996). Other thinkers like Friedrich, Romer, and Grossman have likewise determined the significant role of knowledge in the growth of the economy. On the whole, is the knowledge-based economy even new at all? Maybe. Maybe not. It is somewhere in between. Perhaps it has always been knowledge that has motivated the continuous innovation of man throughout history so for certain, the idea is not definitely new. Then again, its application today is distinct in that it operates on a larger scale and on a faster pace CITATION Ian06 \l 1033 (Brinkley, 2006); besides, nowadays, its notion is particularly regarded as compared to its previous presentation. The knowledge-based economy promoted in the US couldn`t have been any more efficient without the support of globalization especially since a knowledge-based economy is one that works as a network. It could have worked by itself but the incorporation of globalization was a boost in its authority; after all, globalization is aimed towards expansion and increase of economic integration which in turn will make for increased trade and investment CITATION Glo11 \l 1033 (Global Education, 2011). It covers practically every aspect of life, be it cultural, political, ethical, etc. It is virtually pursuing a borderless world, an extended area where everyone is provided with the opportunity to share ideas, opinions, innovations, and whatnot. Suddenly, we`re allowed a seemingly endless network of possibilities. The sharing of ideas allowed for the pursuit of new ones, hence new discoveries and new innovations; creativity is stretched to the limits and knowledge is heightened to a whole new level. Indeed, it is a boost to the US` knowledge based economy. Basically, the value placed on knowledge allowed for innovation and further developments in technology; technology then allowed for the discovery of more knowledge; and henceforth, both allowed the sharing of information to the rest of the world which in turn, provided for them as well - in other words, globalization. Essentially, all three act interdependently hence the success in its implementation. Working in the American modern society has extended from a skills-based respect to one that is knowledge-based, otherwise referred to as service-based, and globalised. Clearly, these changes have not only affected the economy in itself but more so with the people who are behind it. For instance, along with the rise of the ‘new economy` came the dire need of the population to enter colleges and universities - the higher the level of education achieved, the better. It gives one the competitive advantage over another especially in looking for work. Another instance would be outsourcing, where a firm would make use of labor or parts from outside the company usually in an attempt to lessen expenditures from having to personally hire them on the spot. To some extent, the effect of the changing economy is gradual and at another, it is quite instant. That perhaps which is gradual is the effect on the economy generally and that which is instant is the system by which most firms are founded. And just as with any situation, where it has its upside, it as well has its downside. "…Knowledge and information tend to be abundant; what is scarce is the capacity to use them in meaningful ways. Nor is knowledge easily transformed into the object of standard economic transactions. To buy knowledge and information is difficult because by definition information about the characteristics of what is sold is asymmetrically distributed between the seller and the buyer. Some kinds of knowledge can be easily reproduced and distributed at a low cost to a broad set of users, which tends to undermine private ownership. Other kinds of knowledge cannot be transferred from one organization to another or between individuals without establishing intricate linkages in terms of network and apprenticeship relationships or investing substantial resources in the codification and transformation into information." CITATION OEC96 \l 1033 (OECD, 1996) In this case, OECD (1996) implies that while the US` service sector is rather large and generally globally competitive, it is not all the time that they are utilized to their full extent. After all, not everyone is aimed at developing new innovations out of prior knowledge. Furthermore, the outputs from this basis are virtually non-tradable - for the most part, anyway. Therefore, the service sector is not altogether tied to the long-term economic interest of society. In retrospect, while the service sector grows, the manufacturing sector is nearly being passed over. Although it has been asserted that knowledge-based services are the means by which manufacturing processes are enhanced CITATION Cat03 \l 1033 (Mann, 2003), it is still apparent that there are more available people in the service sector - mostly those in trivial occupations or those in industries contingent of the use of high-end technology (i.e. food service, day-care, etc.) - than there are jobs in the manufacturing process. And while there is indeed growth in the development of ‘knowledge-based` products - i.e. softwares, information and communication technologies, etc. - the utilization of the firm`s own people is set aside, a perturbing circumst...