The Great Boom [Englisch] [Gebundene Ausgabe]

For anyone who lived through these years as an adult, I suspect that there will be nothing new. For those who are younger, these milestones and perspectives will make for fascinating reading. For example, my own teenage daughter probably has little understanding of how the economy has developed in the last 50 years. When she is old enough to be curious, this book will make a good nontechnical resource for her.

In 1950, suburban housing tracts were just being started, few people owned stocks, a small percentage had been to college, unemployment was starting to rise again, it was hard to travel from one city to another by car, few had televisions, and many people looked to a factory job in Detroit as the ultimate security.

Professor Sobel credits a number of continuing themes as being very important for the ensuing economic transformation: The GI Bill and a desire to get ahead sent determined veterans to college in large numbers (who later sent their kids to college also); entrepreneurs developed technology and business processes to create massive new industries based on electronics and mobile Americans (McDonald's and Holiday Inns); the Cold War stimulated demand for directed government support of technology and infrastructure (leading to the Interstate Highway system and the Internet); and innovation transformed almost every area of American life to make rare goods and services attractive, inexpensive, and available to the masses (credit cards, no-load mutual funds,and access to buying art). Basically, these are all the hallmarks of a free society.

Where did the new wealth come from? Primarily from home ownership and stock investing. Both were much rarer in 1950, and the prices paid have grown much faster than inflation in both areas. If you bought and held, or bought and traded up, you probably did quite well. If you also started a successful business, you probably did even better. Those who did not do these three things find themselves not very well off from a financial security point of view, but with a higher standard of living than would have occurred in 1950.

What about the downside? Professor Sobel doesn't have as much to say in this area, but he is also optimistic there. His statistics point out the the lowest income people had greater economic percentage gains in buying power over these 50 years than the wealthiest did. He also asks that we do more to understand why some are born in and remain in poverty. His studies did not appear to turn up good evidence on these points. The reason seems to be that few economic statistics by income level were kept in 1950, and even less research was done on the causes. Clearly, racism has to have been a factor, and here he points to the progress in growth of high income families among minority groups. So, you won't find the answer here.

I found the most interesting and important part of the book to be in his thoughtful critique of modern education in 2000. Basically, the focus on better quality that was placed on goods and services in the economy since 1950 missed education almost totally. He describes the growth of illiteracy among those who attend public schools, the dumbing down of high school and college curricula to handle more poorly-prepared students, and the growing numbers of students who opt to drop out and succeed. Math and science students have dropped in such numbers that our modern society cannot succeed without massive infusions of immigrants. In fact, it is the influx of these well educated immigrants who are providing the push to success that will be to 2000 what the GI Bill was in 1950. More troubling are the facts that college curricula are becoming less economically relevant to the New Economy, the name professors are paid to do everything but teach, and being a professor with high standards for your students can keep you from getting tenure.

In many ways, this book is The Greatest Generation Makes Money from 1950-2000. Although it also looks at the two generations that follow, the focus is clearly on the oldest cohort. Why isn't this book at the top of the best seller list like The Greatest Generation is? My answer is that the author chose to quote pundits throughout rather than ordinary people. Occasionally, he puts in a personal story and the book becomes very lively and compelling. Then he moves back into telling the overall story, and it is a lot like reading a news magazine version of the events. It is easy to read, and interesting, but it isn't compelling. If there is ever another edition of this book, I suggest that the second edition be interspaced with lots of personal stories to make it all come to life.

After you have read this rewarding book, ask yourself what you can do to improve education for yourself, your children, and future generations. Then also ask yourself how well you have communicated the lessons of how to be economically successful to these succeeding generations. After you have your answers, be sure to start acting on them. Otherwise, we could lose our way. That would be a pretty monumental example of the communications stall.