es that have created our present punctuated equilibrium. Thurow uses the shifting plates of the earth’s surface analogy to show that, just like continents, economies also are created and destroyed through sudden movements and dramatic shifts. Thurow believes the following economic changes (the economic plates if you will) have significantly altered the economic global landscape:
The conversion of the Communist world to capitalism: With this one third of humanity added to the capitalist world, major realignments are required.
The rise of man-made brainpower industries: New advances in technology allow industry to be located anywhere, shifting the emphasis away from physical capital.
Changing demographics: Social programs must adapt to the growing numbers of elderly people without incomes, and of others, young and old, migrating from poor to rich countries.
A truly global economy: Anything can be made anywhere, and sold anywhere else, which can put national governments at odds with global business.
Lack of a dominant political or military world leader: Now who will write the rules for the world trading system?
The majority of the book is consumed by Thurow’s examination of how these changes have inherently altered the foundations of capitalism across the globe. Yet, the chaos wrecked by these enormous changes is enormous according to Thurow, to the point of apocalyptic scenarios of an unpredictable future. This is particularly true with democracy, as not only is its future uncertain, but, unlike other historical systems of government it has no historical precedent or cyclical nature to study. This is why
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