Old America, New America. How do they relate to the Global Economy?

Question

I dont even understand what it has to do with global economy? I think he said old america was companies gave alot of benefits and bc of that went bankrupt, and now they give shares in the company so people want to work hard hard so company does better.

Answer 1

There has been fundamental changes in the US economy over the last 30 years. Manufacturing now accounts for only 12% of GDP while financial and business services has grown to over 30%. I think these changes due to globalization, and combined with the computor revolution are the most important reasons for the changes in compensation policies of companies. In manufacturing it is easier to keep track of a persons work effort than in services so incentives of options are more likely to be used..See http://www.visualizingeconomics.com/2007/07/02/gross-domestic-product-by-industry-winners-losers/