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conditions at the Chinese labs be world…class； and； as a result； it has also helped
to lift the quality of the Chinese facilities。 〃The living conditions of the lab
animals are right up to U。S。 standards；〃 remarked Levin。 〃These are not mouse
sweatshops。〃
Every law of economics tells us that if we connect all the knowledge pools in the
world； and promote greater and greater trade and integration； the global pie will
grow wider and more complex。 And if America； or any other country； nurtures a labor
force that is increasingly made up of men and women who are special； specialized；
or constantly adapting to higher…value…added jobs； it will grab its slice of that
growing pie。 But
we will have to work at it。 Because if current trends prevail； countries like India
and China and whole regions like Eastern Europe are certain to narrow the gap with
America； just as Korea and Japan and Taiwan did during the Cold War。 They will keep
upping their standards。
So are we still working at it？ Are we tending to the secrets of our sauce？ America
still looks great on paper； especially if you look backward； or compare it only to
India and China of today and not tomorrow。 But have we really been investing in our
future and preparing our children the way we need to for the race ahead？ See the next
chapter。 But here's a quick hint：
The answer is no。
：：：：： SEVEN
The Quiet Crisis
Close games for the Americans were rare in previous Olympics； but now it appears to
be something the Americans should get used to。
…From an August 17； 2004； AP article from the Athens Olympics titled 〃U。S。 Men's
Basketball Team Narrowly Beats Greece〃
You could find no better metaphor for the way the rest of the world can now compete
head…to…head more effectively than ever with America than the struggles of the U。S。
Olympic basketball team in 2004。 The American team； made up of NBA stars； limped home
to a bronze medal after losing to Puerto Rico； Lithuania； and Argentina。 Previously；
the United States Olympic basketball team had lost only one game in the history of
the modern Olympics。 Remember when America sent only NCAA stars to the Olympic
basketball events？ For a long time these teams totally dominated all comers。 Then
they started getting challenged。 So we sent our pros。 And they started getting
challenged。 Because the world keeps learning； the diffusion of knowledge happens
faster； coaches in other countries now download American coaching methods off the
Internet and watch NBA games in their own living rooms on satellite TV。 Many of them
can even get ESPN and watch the highlight reels。 And thanks to the triple convergence；
there is a lot of new raw talent walking onto the NBA courts from all over the
world…including many new stars from China； Latin America； and Eastern Europe。 They
go back and play for their national teams in the Olympics； using the skills they honed
in America。 So the automatic American superiority of twenty years ago is now gone
in Olympic basketball。 The NBA standard is increasingly becoming a global
commodity…pure vanilla。 If the United States wants to continue to dominate in Olympic
basketball； we must； in that great sports cliche； step it up a notch。 The old standard
won't do anymore。 As Joel Cawley of IBM remarked to me； 〃Star for star； the basketball
teams from places like Lithuania or Puerto Rico still don't rank well versus the
Americans； but when they play as a team…when they collaborate better than we do…they
are extremely competitive。〃
Sports writer John Feinstein could have been referring to either American engineering
skills or American basketball skills when he wrote in an August 26； 2004； AOL essay
on Olympic basketball that the performance of the U。S。 basketball team is a result
of 〃the rise of the international player〃 and 〃the decline and fall of the U。S。 game。〃
And the decline and fall of the U。S。 game； argued Feinstein； is a result of two
long…term trends。 The first is a steady decline 〃in basketball skills；〃 with American
kids just wanting to shoot either three…point shots or dunk… the sort of stuff that
gets you on ESPN's SportsCenter highlight reel … instead of learning how to make
precise passes； or go into the lane and shoot a pull…up jumper； or snake through big
men to get to the basket。 Those skills take a lot of hard work and coaching to learn。
Today； said Feinstein； you have an American generation that relies almost completely
on athleticism and almost not at all on basketball skills。 And there is also that
ugly little problem of ambition。 While the rest of the world was getting better in
basketball； 〃more and more NBA players were yawning at the notion of playing in the
Olympics；〃 noted Feinstein。 〃We have come a long way from 1984； when Bob Knight told
Charles Barkley to show up to the second Olympic training camp at 265 pounds or else。
Barkley showed up weighing 280。 Knight cut him that day。 In today's world； the Olympic
coach wouldn't even have checked Barkley's weight in the first place。 He would have
sent a limousine to the airport to get him and stopped at Dunkin' Donuts on the way
to the hotel if the player requested it。。。 The world changes。 In the case of American
basketball； it hasn't changed for the better。〃
There is something about post…World War II America that reminds
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me of the classic wealthy family that by the third generation starts to squander its
wealth。 The members of the first generation are nose…to…the…grindstone innovators；
the second generation holds it all together； then their kids come along and get fat；
dumb； and lazy and slowly squander it all。 I know that is both overly harsh and a
gross generalization； but there is； nevertheless； some truth in it。 American society
started to coast in the 1990s； when our third postwar generation came of age。 The
dot…com boom left too many people with the impression that they could get rich without
investing in hard work。 All it took was an MBA and a quick IPO； or one NBA contract；
and you were set for life。 But while we were admiring the flat world we had created；
a lot of people in India； China； and Eastern Europe were busy figuring out how to
take advantage of it。 Lucky for us； we were the only economy standing after World
War II； and we had no serious competition for forty years。 That gave us a huge head
of steam but also a huge sense of entitlement and complacency…not to mention a certain
tendency in recent years to extol consumption over hard work； investment； and
long…term thinking。 When we got hit with 9/11； it was a once…in…a…generation
opportunity to summon the nation to sacrifice； to address some of its pressing fiscal；
energy； science； and education shortfalls…all the things that we had let slide。 But
our president did not summon us to sacrifice。 He summoned us to go shopping。
In the previous chapters； I showed why both classic economic theory and the inherent
strengths of the American economy have convinced me that American individuals have
nothing to worry about from a flat world…provided we roll up our sleeves； be ready
to compete； get every individual