292 / GLOBAL DREAMS shoe factorres, and the like, only 3 percent were able t0 make it into the high-tech sector. ln 1992 a PennsyIvania steelworker who had just been laid 0 幵 after twenty-five years explained why he was at- tending restaurant SChOOl: "WhO'S gOlng tO send overseas for a ham- burger or a coq au vin?" But hamburger slingers and kitchen aSSIStants even in fancy restaurants dO not make anything remotely 12 like steelworker wages. ln the previous chapter we talked about some of the physical consequences Of factory relocation in the United States—the hollow- lng out Of Older citles and the transformation Of once-remote farm- land intO enclaves Of new production. The direct and indirect economlC COStS Of deindustrialization—ln unemployment and wel- fare benefits, added strain on the health, police, and penal systems in stressed-out commumtles across America—・ add up t0 a catastrophic IOSS. But the human costs of chronic unemployment—family breakup, alCOhOI abuse, and violence—represent an even greater loss. Dr. Harvey Brenner of Johns Hopkins University statistically corre- lated a l-percent lncrease in the aggregate unemployment rate with 37 , 000 deaths, 920 suicides, 650 homicides, 4 , 000 admissions to mental hospitals, and 3 300 admiSSlons tO state prisons over a six- year period. 13 AII such correlations are easily attacked on method- ological grounds, but elaborate social science is hardly necessary t0 establish that the loss of a job or the loss of hope of finding one takes itS tOll on individuals, families, and communities. This is especially true in the United States and Other meritocracles in which work and achievement are SO lmportant in defining an individual's worth. When the unemployment rate reaches 50 percent, as it has among young African-American men ln maJOr cities along the east coast Of the United States and in many Other places, the unwanted and un- needed pose a threat t0 the social order, whether they end up as crrminals, victims, or Just wasted human beings. ln 1991 , 42 percent 研 young black males in Washington, D. C. , were embroiled in the 14 judicial or penal systems. Bluestone and Harrison calculate that between 1969 and 1976 22.3 million jobs disappeared as a result of plant closings and the removal Of production tO Other states or overseas. 、 'When we extrap- 01a 記 d these numbers to the entire decade of the 1970 ' s , we con- cluded that somewhere between 32 and 38 million jobs had ” 15 disappeared in this l()-year period. At the same time, millions 0f new JObS were created, a larger number than the jObS that were lost,

THE TRANSFORMED WORKPLACE / 323 ceeding. ln one case, Sony officials tOld us, a covert orgamzer managed tO slip by company interuewers and was hired, but when he started soliciting workers, they complained tO management and he に f い own. The work force is about equally divided between men and women. About 80 percent of the workers are white, which roughly reflects the racial balance in the immediate Dothan area, and the overwhelming maJ0rity are from hardworking, religious farm families. (D0than's 130 churches are matched in number only by the banks that dot the city, often next door t0 a church. ) Wages and benefits are good for the area. The average hourly wage is $ 10.40 , and this is supple- mented by liberal benefits including profit-sharing, pensions, and a program under which the company matches workers' savings up tO a point. Sony employees have a choice 0f working eight- or twelve- hour shifts. ・ Workers on the twelve-hour shifts receive tWO fifteen- mnute breaks and a twenty-minute lunch periOd. When we asked one woman in her mid-30s whether she had children, she laughed and said that she was much t00 busy; after three days Of twelve-hour shifts her interests were sleep, her dog, and her boyfriend—in that order. Sony is the third-largest taxpayer in the community. The company tries tO purchase as much Of its raw materials in the United States as it can, preferably in Alabama, but over half 0f its inputs, mostly chemicals, come from Japan. Sony officials say that U. S. suppliers Often cannot satisfy Sony'S exacting technical requirements but that their technicians are working hard tO find ways tO use more local materials. Sony seeks t0 be a highly visible community booster, and AkiO Morita himself has come on several occasrons tO play that role. Local company officials are regularly photographed at presentation ceremomes town, gIV1ng away videotapes and COlor televisions or making small contributions t0 the BOY Scouts or the March 0f Dimes, altogether about $ 200 , 000 a year. TWice a week Sony delivers large quantities Of defective tapes and floppy disks to a c 引 center for the mentally handicapped. With the aid 0f electric screwdrivers supplied by Sony, workers disassemble and sort the varlous components, which are then shipped tO recycling centers. AS a result, what used tO be waste material destined for the landfill can now be used again, and the workers take pride in being useful and able tO earn small amounts Of money. Sony executlves in Dothan, including those from Japan, insist that this conservative community has no negative feelings about a Japa-

156 / GLOBAL DREAMS deeper springs. Few places in the world can escape these cultural currents. Especially in so-called traditional societies, there is mount- lng anxlety about the impact Of mass entertarnment on the most basic, the most emotionally explosive issues Of daily life—men- women relations, sexual morality, and the obligations Of parents and children. ln the United States people are still sorting out the revolu- tionary cultural, social, and political changes 研 the 1960S , which have been sources 0f great hope for many but which have also elic- ited great anger and much confusion on all sides. Old certainties about how human beings should behave have been shattered by new social and sexual mores that the global media have helped t0 spread. At the same tlme established authority structures are lncreasingly powerless tO reassert traditional values. NOt even in lran, after thou- sands Of executions in the name Of purity and holiness, could it be done. lncreasingly, neither parents, teachers, priests, nor mullahs can ho 旧 back the tides of change, and thelevels of frustration are rising. Families cannot control what their children see and hear or hOW they spend their time, and teachers cannot compete with highly profes- sional glob 引 media that preempt more 研 their students' waking hours than they dO. According tO a Nielsen survey conducted over two months in 1989 , the average American household has the TV set on 50.1 hours a week. ()n black households the set is on 77.3 hours a Ⅵ℃ ek. ) 28 ln a SOCiety where most women work and most children are in day-care arrangements that depend heavily upon the sedative effects Of television, the love-hate relationship between Americans and the tube is boiling over. Ten-year-01ds who are glued for two or three hours a day t0 TV or WhO dream away the afternoon with the aid Of CDS are neither exercising their brains, developing their own aesthetic sense, nor coping with reality. ln an lncreasingly atomized society, packaged fantasies serve tO cut 0 幵 real human relationships, for which they substitute stereotypes; the beat and pictures touch basic feelings Of lmpressionable preteens about race, gender, love, and SOCial interac- tion, and, in ways we understand only dimly, help mold the person- ality of the adolescent by offering role models. By the time the average American child has completed elementary school, a 1992 report 0f the American Psych010gical Association estimates, he or she will have witnessed 8 000 make-believe murders and 100 , 000 acts of violence. The APA report notes that more than

A MATTER OF TASTE / 251 ト 00m in the mid-1970S , then prices plummeted more than 60 per- cent. Advances in f00d technology also threaten t0 undermine develop- ment strategies for poor countries based on agricultural exports. Consumer-health advocates in the United States have run full-page ads denouncrng 、 tropical as health and various products now carry labels assuring the customer that they are free Of all such potentially cancer-causing substances. The market for artificial sweet- eners and fats developed in American, European, and Japanese lab0- ratories flourished while the market sagged for palm oils and tropical sugars on which many poor' h0t countries depend. World Bank 0 伍 - CialS, 1 OSt Of Ⅵ , h01 れ are fervent believers in free trade as the tO poverty in underdeveloped countries concede these problems. GIO- bal consumers soon will have a ChOiC% according tO a Bank between Kenya AA coffee, which is justly famous and biocoffee beans made in laboratories in the United states. Laboratory-produced va- nilla has threatened the livelihood of 70 000 vanilla-bean farmers in Madagascar. Bioengineered celery' which promises t0 be crunchY' stringless, and long-lasting, has been test-marketed under the brand name vegisnax. waiting in the wings are freeze-resistant chrysanthe- mums, carnatlons, tomatoes, and strawberries intO WhiCh has been cloned. The DNA is configured t0 reproduce an "antifreeze' pro- tein much like the one that protects fish in Arctic waters. 40 ThankS tO new biotechnologies and advances in gene-mapprng' agroindustry has conceived and is about tO give birth tO a "supercow" that will give 25 percent more milk than an average and all 0f it will be high in protein and IOW in fat. Farmers ln poor countries Without access tO patented seeds and cows will have problems competing in the global market. But the prevailing development orthodoxy h01ds that if poor countries are t0 feed their people they have no alternative but t0 plant high-margin export crops, such as flowers and upscale vegetables and ln order to earn the cash t0 buy imported f00d. But this can be risky. Shifts in dietary habits can play havoc with export crops and these are even harder tO predict than breakthroughs in fOOd chemistry or fluctuations on the London or Chicago commodity markets. Thus in the 1980S advisers from aid agencies urged the Philippines, Taiwan' Thailand, and lndonesia tO become maJOr exporters Of prawns. lt seemed tO be an ideal export crop because world prices were high and the profit margin substantial. Moreover, prawns harvested in the region enJOY a rich and ready market. The Japanese have a passlon

THE GLOBAL GROCER / 211 miles away influence what people eat. The globalization 0f f00d production has increased tOtal fOOd stOCks thanks tO chemical fertilizers, and the development Of new varieties Of corn, and wheat, but the commercialization Of fOOd production has put much of this food beyond reach for hundreds millions of poor people around the world. More f00d is now grown in the world than ever before, but the world fOOd situatron IS lncreasingly because 0f distribution problems compounded by the alarming pop- ulation growth rates ln many poor COuntrres. Mass starvation in a world 0f plenty is due partly t0 physical changes—soil and drought¯but also t0 equally significant changes in the way the world f00d system is now organized. The contract pickers field handS' and factory work- ers who plant, pickle, can, and freeze the f00d products that reach supermarket shelves all across the world number in the millions. But most Of these former farmers are not paid enough tO buy industrial food products other than cokes and small snacks. The poorest 1.7 billion inhabitants 0f our still-bountiful planet eat mainly what they grow in back 0f the house or just down the road. And it is not enough. Just five years after the world's premier tobacco company decided t0 become a global grocer, philip Morris was running neck and neck with NeStlé as the number-one processor and distributor Of packaged food products on earth. Before 1986 , except for its acquisition in 1969 of MiIIer beer, a product classified in the industry as 当 00d , " and brief, unhappy experiences with chewing gum and a soft drink' the world's premier tobacco company had never been in the grocery business. But in Just five years it became the second largest grocer. lts world-famous brands now include: Maxwell House' Jell-O, Kool-Aid, Cheez whiz, philadelphia cream cheese' Break- stone's, Oscar Mayer, Kraft's Miracle whiP' Breyers and Frusen Glädjé ice creams, Tang, parkay margarine' Sanka' POSt Raisin Bran' and Toblerone chocolates. The food market is seemingly limitless there is no more basic human need than nourishment. AcrOSS the planet many are eating more than their parents did. ln thejudgment 0f physlcians and diet specialists, increasing numbers are eating better' but much Of the

346 / GLOBAL DREAMS company could have an actual IOSS in California and be taxed on a substantial imputed profit. When he heard about what California was up to, Akio Morita did not like it. By Sony's calculations its San Diego plant was in fact losing money. He complained tO Governor Jerry Brown at a recep- tion in TOkYO where the governor was trying tO persuade more Jap- anese companies tO set up plants in California. That is no way tO dO it, Morita told him. Sony went tO work to organize a coalition of global companies, mostly non-U. S. -based, that included such giant firms as Unilever, NestIé, and ICI, to fight state laws on unitary taxatlon. Sony handed out $ 29 , 000 to California legislators to fight the unitary tax legislation, mostly in tickets tO fund-raisers, and orga- nized other companies to add another $ 108 , 000 to the kitty. Morita 引 SO tOOk the lead in mobilizing a maJOr Japanese business coalition (Electronic lndustries of Japan) in what he called long-term lobbying tO reach "ordinary Americans. " The campaign sketched out a grass- roots political organizing campaign including plans for "managing debates and semrnars in states and localities; instltuting exchanges with state unlversltles and think tanks; contacting state economlC development bureaus, local chambers Of commerce, and state ()ffices 0f U. S. senators and representatlves; and organizing exchanges with ” 11 local consumer groups. Company executives directly communicated threats t0 state 0f6- cials that they would pull their plants out if the objectionable tax remained. Twenty-seven states had followed CaIifornia's lead in adopting the unitary tax, but one by one they repealed it. California alone keptthe tax law on the books, but it added a provisron allow- ing corporations t0 buy an exemption by paymg a modest fee. Sony won the battle. ln recent years corporatlons, whatever flag they fly, have made greater use Of the mass media tO sell not JllSt their products but themselves. Brief reminders of the public-spiritedness oflarge corpo- rations now appear on National Public RadiO and public television and even on exerclse equlpment in national parks. G10b 引 industrial companies have bought major media outlets, and successful media operations, like CNN, have become global giants. "The United States, along with other major democracres," Ben H. Bagdkian, former dean of journalism at the University of California at Berkeley moving swiftly toward media control by a handful of wrltes, gigantic multi-national corporations. " ln 1988 , just twenty-mne cor-

304 / GLOBAL DREAMS out a green card that grants noncitizens the right to work in the United States are not easily persuaded to join picket lines. lndeed, lmmigrants have traditionally been employed as strikebreakers. The earlier immigration coincided with the rise 0f mass production, but the new lmmigration has arrived in the era 0f flexible production. Temporary workers are hard t0 organize even when they are natlve- born Americans. The presence 0f large numbers of unorganized, ex- ploitable foreign-born workers has a depressing effect on the wages and working conditions of all nonskilled workers. Compared tO those Ⅵ市 0 came in the immrgration waves from Europe a hundred years ago, the new lmmigrants on the average are poorer, and 1 ore Of them are female. For these reasons many have a harder time blending in the American melting pot than earlier gen- eratIOns Of immigrants. The economlC necessity 0f sticking together for economrc survival ()ften makes them appear 1 ore clannish than they would otherwise be. Many hang on to their languages and cultures as a way tO develop the financial resources from within their own communitres as well as the inner strength t0 face a society that is often less than welcoming. On the other hand, the United states in recent years has benefited from an influx of skilled, motivated, and highly educated workers. More than 1.5 million college and univer- sity graduates arrived in the 1980S , many with advanced degrees, and American high-tech industry has increasingly come to depend on lndian, Korean, Filipino, and Chinese sclentists and engmeers. ln 1989 , foreign-born students received almost half 研 all the math and computer SCIence doctorates in the United States, and over 50 percent 3 7 in engmeermg. The preparatory-schooling COStS for these new pro- ductive American workers paid for by the lndian or Korean govern- ment iS a forr Of reverse foreign aid. But the United States and the other recelvmg countnes import problems along with the migrant labor force. The maJor problem is SOCial tension, WhiCh becomes especially serious When the economy IS weak and jobs are scarce. ln a 1992 B ぉ 5 Week/Harris poll, 。、 68 % of respondents said today's immigration is bad for the coun- try. " (Seventy-three percent Of African-American respondents were convinced that "businesses would rather hire immigrants than black ” 3 8 Americans. ) S01 e U. S. unions call migrants 、、 indentured servants' and complain that they take jobs away from unron members. But the complaints are overdone. MOSt Of the jObS are at the 10W end 0f the scale, and most unlOn members would not take them in any event, at least as long as any SOCial safety net remains. For American workers,

216 / GLOBAL DREAMS when Dr. James Baker, a physician in Dorchester, Massachusetts, launched the first chocolate factory in America, but General Foods itself dates from the early 1890S. The company, which eventually became the world's largest seller of coffee, was founded by a health-food enthusiast who hated all stimulants, especially coffee. Charles 嶬を post was determined to get Americans t0 change their drinking habits. He developed a cereal beverage he called Monk's Brew, and when he changed the name to Postum, it took 0 庇 He then marketed a granola he called Grape- Nuts. ln 1904 he came out with a corn-flakes product under the name Elijah's Manna that languished on the shelves until it was renamed POSt Toasties. On the strength Of these virtuous products the company grew year by year as it picked up Jell-O, KooI-Aid, Gaines dog food, Birdseye frozen foods, CaIumet baking powder, swans Down flour, SOS scouring pads, Entenmann's baked goods, and on and on. Maxwell had spent a year studying the sluggish food giant before making hiS sudden 0 幵 er. He considered the executives 。、 tentative and overanalytical," and the performance record in recent years alto- gether unpromising. Despite all these problems, Maxwell counted on the newly acquired company to serve as a building block in his global strategy tO remake Philip MorriS. "We want tO be known as a ” 14 consumer-products company. After taking over General Foods, Maxwell poured an additional $ 1.4 billion into it over the next four years and fired most Of its top executives. ・ when Kraft was acquired and merged with General Foods in 1988 , the combined operation retained only tWO General FOOds holdovers at the top management level. As the new owners cut away layers of bureacracy, they launched seventy-five new products. 15 After just three years, during which PhiIip Morris was piling up cash at a rate of almost $ 190 000 an hour, the COStS Of the General FOOds acquisition were paid 0 仟 . 16 The takeover of Kraft was unmistakably unfriendly. Almost as 01d a company as General F00ds, Kraft was founded by the son of a Canadian Mennonite farmer who arrived in Chicago in 1903 , ac- quired a horse and wagon, and began selling cheese to grocers. By the outbreak of World War I, James L. Kraft and his brothers were selling thirty-one varieties of cheese throughout the Midwest and beyond. Kraft became a national dairy company by introducing foil- wrapped cheeses ln wooden boxes in the early 1920S. lt then merged with competitors and picked up such long-established lines as Brey-

408 / GLOBAL DREAMS their international lending, and the Japanese takeover of U. s. com- panies and prime preces Of real estate slowed. But America's prob- lems of debt and dependence remained. Every day an estimated $ 150 billion in U. S. government bonds changes hands across a global computerized trading network that virtually never stops. By late 1992 , the U. S. government owed $ 2.7 trillion in Treasury obligations t0 private investors—17 percent of these bondholders were outside the United States—and another $ 1 trillion to itself, that is, the bonds were held by federal-government agencies. Since the nongovernment bondholders are free at any time to sell millions of dollars oflong-term U. S. securities literally in sec- ondS, they hOId enormous power over the economic decisions of any president. Bill Clinton was elected in part on a promise to get the economy moving with the aid Of a "stimulus package," the infusion of tens of billions of new investment funds. But already during the transltion he was made acutely aware that, as R0bert Hormats, vice- chairman of Goldman Sachs lnternational, puts it, "the global bond market can be a very tough disciplinarian. " If the president is per- ceived t0 be pursuing an inflationary policy by thousands of bond- holders across the world, who generally exhibit what Hormats calls a 、 very conservative bias," they are almost certain t0 unload their fixed-income securities. ThiS would drive rnterest rates up, slow the economy, and effectively cancel the effect Of the new rnvestment. As Clinton took office the budget defici い tood at a record $ 290 billion, up from $ 74 billion at the end of the Carter administration. "By having such a big deficit," Edward Yardeni, chief economist at C. J. Lawrence lnc. , notes, have created a situation that puts a 10t of power in the hands of money managers all around the world. created the monster, and now it's coming back tO tell us what we can and can't do. " 8 Clinton's stimulus package was killed at birth. For the United States, as for every other country, the pnce of economrc integration has been a IOSS Of political autonomy. For years managers Of the U. S. economy assumed that because America was the flagship of the world economy, indeed the printer and prime manager Of the world's reserve currency, the country was relatively free tO tune lts own economy by ra1S1ng and lowerrng taxes and adjusting interest rates. But by 1990 crucial decisions that were tra- ditionally the exclusive province of the president and the Federal Reserve Board were now held hostage to rnternational pressures. lndeed, the need to accommodate Japan and the failure to influ- ence Germany tO keep interest rates down may well have cost George

148 / GLOBAL DREAMS efits 0f 々尾 / 〃〃 g : the programs are designed and so 旧 [ 0 advertisers, cable companles, and/or station programmers before they're even made. 16 MOSt video-pop channels now have to pay to use promotional' clips. Old songs can now be resold to promote all sorts of products. ln Europe, Cream's 、、 I Feel Free" has been used to sell Renault cars; the Doors' "Riders in the Storm" has pushed Pirelli tires; and Nike marketed a new generation Of sneakers with the aid of the Beatles' 、、 Revolution. '' But now new songs can be promoted and at the same time generate substantial revenues via global TV ads. ln 1989 pepsi- COla marketed tWO minutes 0f prime trme ln each of forty countries ranging from Finland t0 the Philippines t0 launch a commercial fea- ” 17 turing Madonna lntroducing her new song, "Like a prayer. ()t was withdrawn from the U. S. market, however, after the American Fam- ily Association threatened a Pepsi boycott. ) Record-company executives like t0 call recorded muslc 、、 the world's most customer-driven product. " The "kids," as industry mar- keters tend tO refer tO their primary market, are both vulnerable to fashion and capable of overwhelming sales resrstance. Clearly, that which hits the airwaves and the record stores establishes the menu. Until that point the fans have no more ro に in the process than they dO in deciding what films reach the screen or what magazines reach the newsstand. lnvestors, producers, and editors bank on their fans' previous enthusiasms for similar sortS Of music, 61n1S , and features, but the notion that the record companies can create taste and force artists on the public through sheer promotion is mostly myth. To be sure, consumer tastes have less tO dO With the making of stars than in the days when performers had to pay their dues to 10C 引 audiences and work their way up to global fame. But no amount of promotion can sell an artist the fans dO not like. ・市 at gets distributed and how it is promoted can reinforce fash- ions, but what next year's marketable sounds will turn out to be is unknowable. promotl()n can drive smaller companies from the mar- ketplace or force them to sell out, but it cannot guarantee the pro- duction of hit records. The story of the so-called independent promoters, kno 、 as IS instructive. ln 1985 the industry was spending somewhere between $ 60 million and $ 80 million a year on "indies," whose jOb was tO talk local radio stations into repeated airings Of their clients' prospective hit songs and to keep competitors' records 0 幵 the air. An informal alliance of "indies" was