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competition for who can offer the most lavish safety nets。 Yes�察�we must address 
people's fears�察�but we must also nurse their imaginations。 Politicians can make us 
more fearful and thereby be disablers�察�or they can inspire us and thereby be enablers。 
To be sure�察�it is not easy to get people passionate about the flat world。 It takes 
some imagination。 President Kennedy understood that the competition with the Soviet 
Union was not a space race but a science race�察�which was really an education race。 
Yet the way he chose to get Americans excited about sacrificing and buckling down 
to do what it took to win the Cold War´which required a large´scale push in science 
and engineering´was by laying out the vision of putting a man on the moon�察�not a missile 
into Moscow。 If President Bush is looking for a similar legacy project�察�there is one 
just crying out´a national science initiative that would be our generation's moon 
shot�此�a crash program for alternative energy and conservation to make America 
energy´independent in ten years。 If President Bush made energy independence his moon 
shot�察�in one fell swoop he would dry up revenue for terrorism�察�force Iran�察�Russia�察�
Venezuela�察�and Saudi Arabia onto the path of reform´which they will never do with 
50´a´barrel oil´strengthen the dollar�察�and improve his own standing in Europe by 
doing something huge to reduce global warming。 He would also create a real magnet 
to inspire young people to 
284 
contribute to both the war on terrorism and America's future by again becoming 
scientists�察�engineers�察�and mathematicians。 ;This is not just a win´win�察─�said Michael 
Mandelbaum。 ;This is a win´win´win´win´win。; I have consistently been struck that 


my newspaper columns that have gotten far and away the most positive feedback over 
the years�察�especially from young people�察�have been those that urged the president 
to call the nation to this task。 Summoning all our energies and skills to produce 
a twenty´first´century fuel is George W。 Bush's opportunity to be both Nixon to China 
and JFK to the moon in one move。 Unfortunately for America�察�it appears as though I 
will go to the moon before President Bush will go down this road。 
Muscles 
Since lifetime employment is a form of fat that a flat world simply cannot sustain 
any longer�察�compassionate flatism seeks to focus its energy on how government and 
business can enhance every worker's lifetime employability。 Lifetime employment 
depends on preserving a lot of fat。 Lifetime employability requires replacing that 
fat with muscle。 The social contract that progressives should try to enforce between 
government and workers�察�and companies and workers�察�is one in which government and 
companies say�察 �We cannot guarantee you any lifetime employment。 But we can guarantee 
you that government and companies will focus on giving you the tools to make you more 
lifetime employable。; The whole mind´setof a flat world is one in which the individual 
worker is going to become more and more responsible for managing his or her own career�察�
risks�察�and economic security�察�and the job of government and business is to help workers 
build the necessary muscles to do that。 
The ;muscles; workers need most are portable benefits and opportunities for lifelong 
learning。 Why those two�拭�Because they are the most important assets in making a worker 
mobile and adaptable。 As Harvard University economist Robert Lawrence notes�察�the 
greatest single asset 

that the American economy has always had is the flexibility and mobility of its labor 
force and labor laws。 That asset will become even more of an advantage in the flat 
world�察�as job creation and destruction both get speeded up。 
Given that reality�察�argues Lawrence�察�it becomes increasingly important for society�察�
to the extent possible�察�to make benefits and education´the two key ingredients of 
employability´as flexible as possible。 You don't want people to feel that they have 
to stay with a company forever simply to keep their pension and health benefits。 The 
more the workforce feels mobile ´in terms of health care�察�pension benefits�察�and 
lifelong learning possibilities´the more it will be willing and able to jump into 
the new industries and new job niches spawned by the flat world and to move from dying 
companies to thriving companies。 
Creating legal and institutional frameworks for universal portability of pensions 
and health care ´in addition to Social Security�察�Medicare�察�and Medicaid´will help 
people build up such muscles。 Today roughly 50 percent of Americans don't have a 
job´based pension plan�察�other than Social Security。 Those who are fortunate enough 
to have one cannot easily take it with them from job to job。 What is needed is one 
simple universal portable pension scheme�察�along the lines proposed by the Progressive 
Policy Institute�察�that would get rid of the confusing welter of sixteen different 
tax´deferred options now offered by the government and consolidate them all into a 
single vehicle。 This universal plan�察�which you would open with your first job�察�would 


encourage workers to establish 401 ��k�� tax´deferred savings programs。 Each worker 
and his or her employer could make contributions of cash�察�bonuses�察�profit sharing�察�
or stock�察�depending on what sorts of benefits the specific employer offered。 These 
assets would be allowed to build up tax´free in whatever savings or investment 
portfolio options the worker chose。 But if and when it came time to change jobs�察�the 
worker could take the whole portfolio with him or her and not have to either cash 
it out or leave it under the umbrella of the previous employer。 Rollover provisions 
do exist today�察�but they are complicated and many workers don't take advantage of 
them because of that。 
The universal pension format would make rollover simple�察�easy�察�and 
286 
expected�察�so pension lockup per se would never keep someone from moving from one job 
to another。 Each employer could still offer his or her own specific 401 ��k�� benefit 
plan�察�as an incentive to attract employees。 But once a worker moved to another job�察�
the investments in that particular 401 ��k�� would just automatically dump into his 
or her universal pension account。 With each new job�察�a new 401 ��k�� could be started�察�
and with each move�察�the benefits deposited in that same universal pension account。 
In addition to this simple�察�portable�察�and universal pension program�察�Will Marshall�察�
president of the Progressive Policy Institute�察�proposes legislation that would make 
it much easier and more likely for workers to obtain stock options in the companies 
for which they work。 Such legislation would give tax incentives to companies to give 
more workers more options earlier and penalize companies that do not。 Part of making 
workers more mobile is creating more ways to make more workers owners of financial 
assets�察�not just their own labor。 ;We want a public that sees itself as stakeholders�察�
sharing in the capital´creating side of the flat world�察�not just competing in global 
labor markets/' argued Marshall。 ;We all have to be owners as well as wage earners。 
That is where public policy has to be focused´to make sure that people have 
wealth´producing assets as they enter the twenty´first century�察�the way homeownership 
accomplished that in the twentieth century。; 
Why�拭�Because there is an increasing body of literature that says people who are 
stakeholders�察�people who have a slice of the pie�察 �are more deeply invested in our 
system of democratic capitalism and the policies thatkeep itdynamic�察─�said Marshall。 
It is another way�察�besides home´ownership�察�to underpin the legitimacy of democratic 
capitalism。 It is also another way to energize it�察�because workers who are also owners 
are more productive on the job。 Moreover�察�in a flat world where every worker is going 
to face suffer competition�察�the more opportunities everyone has to build wealth 
through the power of markets and compounding interest�察�the more he or she will be 
able to be self´reliant。 We need to give workers every stabilizer we can and make 
it as easy for them to get stock options as it is for the plutocrats。 Instead of just 
being focused on protecting 
287 
those with existing capital�察�as conservatives so often seem to be�察�let's focus instead 
on widening the circle of capital owners。 
On the health´care side�察�which I won't delve into in great detail�察�since that would 


be a book unto itself�察�it is essential that we develop a scheme for portable health 
insurance that reduces some of the burden on employers for providing and managing 
coverage。 Virtually every entrepreneur I talked to for this book cited soaring and 
uncontrolled healthcare costs in America as a reason to move factories abroad to 
countries where benefits were more limited�察�or nonexistent�察�or where there was 
national health insurance。 Again�察�I favor the type of portable health´care program 
proposed by PPL The idea is to set up state´by´state collective purchasing pools�察�
the way Congress and federal employees now cover themselves。 These pools would set 
the rules and create the marketplace in which insurance companies could offer a menu 
of options。 Each employer would then be responsible for offering this menu of options 
to each new employee。 Workers could choose high�察�medium�察�or low coverage。 Everyone�察�
though�察�would have to be covered。 Depending on the employer�察�he or she would cover 
part or all of the premiums and the employee the rest。 But employers would not be 
responsible for negotiating plans with insurance companies�察�where they have little 
individual clout。 
The state or federal pools would do that。 This way employees would be totally mobile 
and could take their health´care coverage wherever they went。 This type of plan has 
worked like a charm for members of Congress�察�so why not offer it to the wider public�拭�
Needy and low´income workers who could not afford to join a plan would get some 
government subsidy to do so。 But the main idea is to establish a government´supervised�察�
´regulated�察�and ´subsidized private insurance market in which government sets the 
broad rules so that there is no cherry´picking of healthy workers or arbitrary denial 
of treatment。 The health care itself is administered privately�察�and the job of 
employers is to facilitate their workers' entry into one of these state pools and�察�
ideally�察�help them pay for some or all of the premiums�察�but not be responsible for 
the health care themselves。 In the transition�察�though�察�employers could continue to 
offer health´care plans as an incentive�察�and workers would have the option of 

going with either the plan offered by their employers or the menu of options available 
through the state purchasing pools。 ��For details�察�go to ppionline。org。�� 
One can quibble about the details of any of these proposals�察�but I think the basic 
inspiration behind them is exactly right�此�In a flattening world�察�where worker security 
can no longer be guaranteed by Fortune 500 corporations with top´down pension and 
health plans�察�we need more collaborative solutions´among government�察�labor�察�and 
business´that will promote self´reliant workers but not just leave them 

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