Some things I learned from GE2017
Aside from this being a great recap of the UK general election, a great point is made regarding the service economy. As we have witnessed for many years, the manufacturing economy has slowly evolved into a servicing economy. This means, for example, that rather than employees working in factories making products by hand, employees will work in product development to conjure and market new products.
More importantly, the voting trends from this election show that regions that have adapted well to the service economy continued voting for the Labour party, while regions that have not adapted well voted Conservative. This is important because the key ingredient to a service economy is higher education. It is almost a prerequisite (though exceptions exist…) that knowledge comes from education. With this as the backdrop, the long-term discussion is the unsustainable path of the cost of higher education in the U.S. In a global economy (“globalism”), which, for the time being will continue its natural path, highly developed nations evolve into servicing economies while developing nations are the manufacturers. The conclusion here is the U.S. needs to improve the education system to meet the demand for the service economy. Economies that do not recognize this may revert back to a less productive economy under the impression that economic activity will increase significantly under a manufacturing economy.
I am deliberately avoiding the cost of higher education rabbit hole today, but perhaps I will discuss the economic implications at a later date.