Knowledge Economy vs Manufacturing Productivity

Peter Drucker, the father of leadership management and the knowledge economy evolution laid the foundation for modern business paradigms.

“Management is doing things right; leadership is doing the right things. The most important thing in communication is to hear what isn’t being said. Knowledge has to be improved, challenged, and increased constantly, or it vanishes.” Quotes, Peter Drucker


Today, when we examine the state of the U.S. economy, its really a “Tale of Two Cities”. On the one hand, the people with advanced college degrees are earning 5X more income than those without high quality education. This vast wealth and education gap highlights the struggle of knowledge vs manufacturing economy which has changed the fabric of America.


Not everyone has the brain power to compete as a neurosurgeon, Wall Street financier or computer programmer; so the importance of reigniting the U.S. manufacturing industry is of strategic importance to maintaining a healthy society and productive community says James Dean @ It goes to the heart of keeping America prosperous and safe for our kids.

We’ve got local companies like ABC GROUP FUEL SYSTEMS in Gallatin, Tennessee manufacturing auto parts and creating hundreds of local jobs. 

But today, auto parts – plastic molding and polymer manufacturing is technology intensive. With automation and robotics in manufacturing now, employers like ABC GROUP are stressed to find high quality, people educated to meet the demand. It requires a “smarter” factory worker now.

If we look at measured scientific data such as IQ, we find that a geographic grouping of sorts can be derived that also tends to reflect the industries within that region. The map below gives a general guide to IQ distribution.

IQ intelligence

For example, overall IQ’s in Tennessee fall about average 96 but low vs Massachusetts 105 on-average. This is often consistent with the specific area’s job opportunities i.e. Manufacturing vs Knowledge based job functions. 

So Tennessee accommodates it’s population overall as a manufacturing state that provides better tax incentives for low-mid wage jobs.

While Massachusetts is a knowledge intensive business environment focused on workers with advanced educations. The Boston area is a tech startup and R&D innovation hub. This diverse geographic application requires more localized solutions, less dependent on federal governance. 

Although, Tennessee Governor Bill Haslam has made strides to upgrade the state’s education system. It still falls well short of a state like Massachusetts. Even with the Tennessee Promise, its a long way to improvement that will take decades to produce better results. 

Overall, Tennessee ranks about 34th vs 50 state in America for quality of education. Versus a state like Massachusetts ranking #1 nationwide.

Given the United States is ranked just 26th worldwide in the quality public education compared to India and China, for example. The need to reignite domestic manufacturing in America must become a key component to returning family stability and rebalancing the massive income distribution wealth gap that has impacted our society. READ OECD DATA 

The potential for America to lose both manufacturing which has already largely shifted overseas and the knowledge, high-wage jobs is very real, given the poor state of U.S. public education and non-competitive tax structure added Mr. Dean @ 

This return to a more balanced approach that benefits middle class America can only be accomplished by lowering corporate tax rates and creating incentives to locate manufacturing facilities domestically. 

Jamie Dimon, CEO JP Morgan weighs-in on the global economy decade ahead. 

Currently, the U.S. corporate tax rates are 39% or so, noncompetitive which is causing a flood of company tax inversion mergers. A new tax plan to attract corporations to expand facilities and manufacturing in America could usher in a rebirth of the once robust middle class working family but new leadership is needed. 


corporate tax rate