The new working capital

✍ Scribed by Robert B. Reich

• Publisher: John Wiley and Sons
• Year: 1998
• Weight: 470 KB
• Volume: 1998
• Category: Article
• ISSN: 1087-8149
• DOI: 10.1002/ltl.40619980808

✦ Synopsis

t is unusual for a Labor Secretary to become a highly visible and controversialfigure. It is also rare for a cabinet oficer to have earned international recognition in private lije as a

I scholar and author. Robert B. Reich, who served as Secretary o f h b o r during President

Clinton'sfirst term, earned such standing, writing more than 200 articles and six books before coming to office-and a best-selling political memoir after leaving. Responsible for overseeing compliance with working conditions, wage requirements, and pension law for millions of Americans (and managing a $4 billion budget and 18,000 employees), he raised the profile of his department and led the debate on many domestic policy issues. He spoke in late 1997 with Leader to Leader.

Leader to Leadw: What is the state of the American workforce today in terms of competitiveness, productivity, and economic well-being? Robert Reich: The American workforce in general is doing extremely well. It's highly productive and average pay is increasing. But generalizations are becoming hazardous. The bottom half still hasn't shared in the fruits of this recovery. In fact, about 30 percent of the workforce has actually lost ground in terms of wages and benefits. It's really quite amazing that by the seventh year of a recovery median wages are still less than what they were before the recovery began.

A big part of the answer is to improve our schools, obviously. In a knowledge-intensive economy, those without adequate education and slulls simply cannot take advantage of all the new opportunities out there. Companies can do a better job utilizing the latent skills and potential of all their employees. Even during a time of economic expansion, too many companies still regard employees as costs to be cut rather than as assets to be developed.

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