NewsWire--SEPTEMBER 24, 1996
TOPIC: Reengineering,
Equity Capital, Working Capital
SOURCE: "The Upsizing
of America," by Peter Lynch, Wall Street Journal,
September 20, 1996, A14.
SYNOPSIS: The article
discusses what Peter Lynch calls "upsizing" (as opposed
to downsizing) in the United States. Upsizing is the net creation
of new jobs in new companies founded by entrepreneurs. Lynch
argues that reports on the impact of reengineering and downsizing
are overstated because they do not give proper credit to entrepreneurs
for the large increase in net jobs in the U.S. He compares changes
in employment opportunities in the U.S. to those in Europe and
argues that conditions in the U.S. have lead to better employment
opportunities than in Europe. The article offers an opportunity
to discuss reengineering, downsizing, and how financial markets
impact employment opportunities.
DISCUSSION QUESTIONS:
1. What is upsizing, and how does it differ from
downsizing?
2. What are the implications of upsizing and downsizing
for U.S. workers and society?
3. Briefly discuss how the following four elements
lead to higher job creation in the U.S. than in Europe: 1) entrepreneurs,
2) commercial banks looking for loans, 3) large pools of venture
capital, and 4) outstanding capital markets.
Return to news index
|
