Saturday, July 09, 2005


Bloated Executive Salaries Destroying US Technological Lead

Seems like all the smart kids are going to business school rather than engineering school, due to US businessmen funding their bloated CEO salaries by cutting research opportunities:
U.S. losing lead in science and engineering-study

WASHINGTON (Reuters) - More than half a century of U.S. dominance in science and engineering may be slipping as America's share of graduates in these fields falls relative to Europe and developing nations such as China and India, a study released on Friday says.

The study, written by Richard Freeman at the National Bureau of Economic Research in Washington, warned that changes in the global science and engineering job market may require a long period of adjustment for U.S. workers.


The picture among doctorates -- key to advanced scientific research -- was more striking. In 2001, universities in the European Union granted 40 percent more science and engineering doctorates than the United States, with that figure expected to reach nearly 100 percent by about 2010, the study showed.

The study said deteriorating opportunities and comparative wages for young science and engineering graduates has discouraged U.S. students from entering these fields, but not those born in other countries.

These trends are challenging the so-called North-South global economic divide, the paper said, by undermining a perceived rich-country advantage in high technology.

"Research and technological activity and production are moving where the people are, even when they are located in the low-wage South," Freeman wrote, citing a study saying some 10-15 percent of all U.S. jobs were "off-shorable."
(Source: Reuters, July 8, 2005.)
Howard Jarvis' "Tax Revolt" cut funding for public education both in California and nationwide. The greed-fueled 1980s mergers (where speculators cashed in "overfunded" pension funds to finance speculative investments) showed people that business school graduates made more money running companies into the ground than engineering school graduates did by helping the company build new products.

Short-term gain at the expense of disaster in the long run. US business has run on this for years, and our CEO President's entire Iraq strategy is based on this same strategy. Don't you just love the way free-market principles derived from buying wheat in the public square cause massive damage when an effect takes place 20 years after the relevant cause?


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