Module 6

Jayden Nyman

IST 1100

Module 6

            Freidman explains free trade by using David Ricardo’s theory which states, “If each nation specializes in the production of goods in which it has a comparative cost advantage and then trades with other nations for the goods in which they specialize, there will be an overall gain in trade, and overall income levels should rise in each trading country.” Freidman argues that Ricardo is right, and that more American individuals will benefit if we don’t erect barriers to outsourcing, supply chaining, and offshoring than if we were to allow the barriers. I believe that supply chaining is very important because it allows jobs to potentially be created. This is very important, and with lower trade barriers I would believe that jobs would be easier to come by. Free trade also creates more savings and investment opportunities because of the increase of money and profit that the trade brings in. This is very important because it allows for a better retirement, as well as allows America to give out higher paying jobs. I know that I will want to have benefited from a higher savings and investments when I’m ready to retire.

            Traits that would make up a “new middler” would be “special or specialized.” For example, Friedman says they are the “untouchables”, like Michael Jordan, or Madonna because they are very “specialized” and can’t be copied or matched. Like Michael Jordan, he is looked at as the best to ever play basketball. Not just anybody can copy what he has done, or ever will, this is why he is “specialized.” In order to be a “new middler”, they have to be classified with a middle class job, but only newer. Second are people who are localized and anchored. These people are considered “untouchables” because their jobs have to be done a specific way or in a specific area or place. This could be a plumber, or even your family dentist. The third category includes middle class jobs that would include things such as security analysis, or even radiology. Freidman called these the “old middle” jobs. These jobs are now fungible and tradable because of the ten flatteners, and many of the jobs are now under pressure from the flattening of the world.

            Describing the CQ plus PQ is greater than IQ is quite easy. Freidman describes IQ as the intelligence quotient, CQ as the curiosity quotient, and then PQ as the passion quotient. Friedman argues that IQ matters, but CQ and PQ matter even more. He gives an examples stating, “Give me a kid with passion to learn and a curiosity to discover and I will take him over a less passionate kid with a high IQ every day of the week.” I completely agree with his idea of the entire formula. Everything he said in this chapter makes sense, and I would definitely take the kid with passion and curiosity over someone with only a high IQ. Curiosity in some shape or form is what has lead to some of the great inventions that we have come to know and love. This is why the formula is very important, because we need curious and passionate people in our society working to create better more efficient ways of living.

            What I have read in these chapters has really engaged me to look farther into the essay questions. Free trade, “new middlers”, and CQ+PQ>IQ are all very important topics. These are all things that will help promote a better world around us, as well as change the way that our world operates for the greater good.