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A renowned business leader predicts that economic strength will determine the next world leader, and he outlines a long-term plan for American success. By the author of The Zero-Sum Society. Reprint. National ad/promo. NYT.
- Sales Rank: #3899029 in Books
- Published on: 1993-06-01
- Original language: English
- Number of items: 1
- Dimensions: 8.00" h x .88" w x 5.25" l,
- Binding: Paperback
- 336 pages
From Library Journal
Thurow discusses the futures of the three major players in the battle for economic supremacy in the 21st century. Savings, investment, and education will determine who builds the next world-class economy (Europe is Thurow's prediction). Although the themes and critiques of the U.S. economy are typical Thurow (see his Zero Sum Solution , LJ 12/85), the international perspectives move this work into new territory beyond the usual U.S.-Japan comparisons. As always, Thurow has a knack for the telling phrase and the discovery of a significant trend. Highly recommended for all libraries. Previewed in Prepub Alert, LJ 12/91.
- Richard C. Schiming, Mankato State Univ., Minn.
Copyright 1992 Reed Business Information, Inc.
From Kirkus Reviews
A perceptive interpretive appraisal of the coming trilateral struggle for world dominion. Thurow (Dean/MIT-Sloan School of Management; The Zero-Sum Solution, 1985, etc.) takes a contrarian approach in predicting that Europe, not America or Japan, could prove the biggest winner in a bloodless clash that promises to shape the 21st century. At the start of 1995, Thurow notes, the EC will constitute a unified market with a well-educated population of 337 million and a GNP larger than that of the US; the addition of nonmember nations, plus erstwhile Soviet republics and/or satellites, would boost the head count to 850 million. Under German leadership, he insists, the Continent will do and pay whatever is necessary to achieve genuine integration, if only to forestall disruptive immigration flows. In the meantime, Thurow observes, corporate America's individualist, profit-maximizing enterprises are engaged in a spirited competition with the communitarian empire-builders of Japan, and the victor will determine the rules by which the great game of capitalism is played for decades to come. But having reviewed the standing of US business vis-…-vis that of EC and Japanese rivals in eight key industries (aircraft, consumer electronics, machine tools, semiconductor devices, etc.), the author leaves little doubt as to which country is likely to be on the losing side. Thurow closes with a comprehensive agenda designed to renew America's capacity to survive and thrive in the brave new commercial world now in prospect. A thoughtful, thoroughgoing analysis of a consequential conflict among economic superpowers, worthy of a wide readership. -- Copyright ©1992, Kirkus Associates, LP. All rights reserved.
Most helpful customer reviews
17 of 20 people found the following review helpful.
Yesterday's mistakes should help us avoid tomorrow's
By hsmith3@ibm.net
Head to Head is a great example of one way books are superior to TV and Internet postings: they stay around for us to learn from the errors made by people TV personalities identify as "experts." When Lester Thurow was writing his book in 1991-1992, the U.S. was in the midst of what we know now was a mild and short-lived recession. But with the bias that many academics and government bureaucrats have against free market forces, which seem to the risk adverse who are attracted to a life in academia and government service, a chaotic way to deal with the powerful forces which provide a nation with jobs, products and the wealth that make mega-universities and fat government programs possible. Thurow took a book that looked as if it were going to be about Japan, Germany and the U.S. competing with each other, head to head, brain to brain as opposed to the old competition based on natural resources, and almost from page one made it into a diatribe warning that without Japan's Ministry of Finance's economic management and Germany's coddling of workers, America was going to be a second or third class nation. Of course we know now that Japan's economy was on the verge of stagnation and Germany is only now recognizing the need to remove employment guarantees if it is going to be globally competitive.
If Thurow had been America's Minister of Finance we know into which businesses he would have directed funds: high definition television for which American consumers have never shown a great interest and the automobile building robots General Motors tried for a few years before replacing them with simpler machines. Meanwhile many of us were typing in cumbersome commands, using gopher and telnet to share information stored on around 70 computers. In 1989 Tim Berners-Lee created HTML and HTTP to launch the World Wide Web. This development seems to have been unnoticed at MIT's economics department, but at the University of Illinois at Urbana-Champaigne an undergraduate student, Marc Andreesen recognized how a point and click way of collecting information might change the world. The beta version of Mosaic came out shortly after Thurow's book and Andreesen then created Netscape.
Computers and the Internet went on to give America the increase in productivity Thurow thought we couldn't achieve because the government wasn't building highways and bridges. The funding came from entrepreneurs who risked their own money and consumers who saw the benefits of the new technology. Once again, history proved that individual investors and consumers can guide Adam Smith's invisible hand to do things no government bureaucracy or academic researcher could envision. But academics and government functionaries, such as Thurow's colleague in MIT's economics department, Paul Krugmann, our new Secretary of the Treasury, Lawrence Summers formerly a Harvard economics professor and his former colleague, Martin Feldstein are arguing that bureaucrats have a better idea of the value of a Thai baht or Korean won than the currency traders who signal to corporate CFO's how many baht they should ask for goods they sell today to pay their German employees in marks tomorrow. They dream of something like an International Ministry of Finance. Some people never learn.
7 of 7 people found the following review helpful.
Bad Economics
By Gilles Payet
The book is disappointing as it uses flawed arithmetics. The author views economics as a zero-sum game. He confuses competitiveness among corporations as being the same as amongst countries. The book seems intellectually rigorous but any serious economist will tell you it is full of fallacies. One gets a better idea of international economics by reading Pop Internationalism by Paul Krugman, one of the most brilliant younger economist.
0 of 0 people found the following review helpful.
A light bulb went up while reading this book
By ltlee
Thurow presented 3 lists in "Table6.1 The Richest Countries Per Capital in 1870 and 1988." He intended to show that it is difficult for a country to get rich. He was right. But the date he provided in the book also suggests something contrary to commonly held belief concerning the relationship between Western democracy and prosperity.
1. The richest countries in 1988 based on internal purchasing power in descending order:
United Arab Emirates, United States, Canada, Switzerland, Norway, Luxembourg, Australia, Iceland, Kuwait, Sweden, West Germany, Finland, Japan, France, Denmark, United Kingdom, Italy, Belgium, Netherlands, Austria.
2. The richest countries in 1988 based on external purchasing power in descending order are:
Switzerland, Iceland, Japan, Norway, Finland, Sweden, Denmark, United States, West Germany, Canada, Luxembourg, France, Austria, United Arab Emirates, Netherlands, Belgium, United Kingdom, Italy, Australia, New Zealand.
Judging from the above two lists, one is not difficult to reach the conclusion that democracy is correlated with prosperity. But then a light bulb went up. First of all, correlation is not causation. More important, one can also look at a similar list concerning the relative wealth of the countries at 1870.
3. The richest countries in 1870 in descending order are:
Australia, United Kingdom, Belgium, Switzerland, Netherlands, United States, New Zealand, Denmark, Canada, France, Argentina, Austria, Italy, Germany, Spain, Norway, Ireland, Portgual, Sweden, Chile
Compare the 1870 list with the 1988 lists, it is obvious that many rich countries in 1988 were already rich in 1870. Many of the rich countries are democracies in 1988. Were they equally democratic in 1870?
At 1870, Ireland, Australia,were still part of the United Kingdom. NewZealand's was declared a British dominion at 1907. Canada was independent in 1867, so its properity was not the results of democracy.
Napolean III of the Second France Empire had lost the Frano-Prussian war, the Third Republic was newly established.
How about Austria? Seems Austrians had a low opinion on democracy. ""When Paris sneeze," commented the Austrian Chancellor, Metternich, "Europe catches Cold." French-style democracy was a menance threatening monarch, Church, and property - the pillars of every thing he stood for." (EUROPE by Norman Davies)
In short, not many list 3 countries above were real democracies. Indeed, no European countries in list 3 allowed universal male suffrage in 1870 with Switzerland the only exception.
Again, correlation between democratic coutry and prosperous country is not causation. Many countries are rich today because they were already rich 100+ years ago.
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