THOUSANDS OF PROFESSIONAL JOBS IN THIS COUNTRY have been downsized or offshored, and the Americans who held them have been laid off. Where are those people now? Few have starved to death or the tabloids would have told us. Few have jumped from bridges or the security camera footage would be all over YouTube. All those poor souls somehow have continued to earn enough for bare subsistence, or better.
Like it or not, the underemployed eventually realize that they have become small-business people. They did not register with the SBA for loans; they just began creating wealth for themselves by selling stuff or services to others.
We live in the most adaptable organism on earth. With a computer and a link to a network, we can use our knowledge to adapt and create wealth.
FARMERS AND FACTORY WORKERS could tell us that economic activity has always had a knowledge component. It's hard to create much wealth without skills. Now, for the first time in human history, knowledge is becoming the dominating determinant of wealth creation.
There are giant companies, such as Microsoft, that manufacture almost nothing. They don't ship anything except computer disks loaded with data, and sometimes not even that. Even an old-line "heavy-iron" company like IBM has transformed its manufacturing business into a different kind of wealth-creating enterprise, in which 60% of sales come from service contracts.
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