Here is a word that is fairly rare, heard mostly about
economic issues. Fungible means “being
of such nature or kind as to be freely exchangeable or replaceable, in whole or
in part, for another of like nature or kind.”
A close synonym is interchangeable.
This word came to my mind when I heard a radio ad for a
company called Outsource.com. They were
advertising that you could use their services to hire temporary,
project-oriented help for your business, especially for such things as computer
programming and web design. They gave
sample hourly prices to show how competitive they are. Whether these services would originate in the
US or somewhere else was not clear. What
I do know is that they could be easily delivered from almost anywhere and
apparently low bidders have been signed up.
I am not in the market for such services, so there was no
reason for me to pay attention to the details, but it struck me that this word,
fungible, which usually refers to commodities – this ounce of gold being just
as valuable and interchangeable as another ounce of gold somewhere else – can
also apply to skills. When you think
about it that way, some major economic issues become clearer.
It has become clear both from the news and from the accents
we encounter when calling for a customer helpline that skills like programming
and telephone customer service are fungible skills. A few websites offer basic legal services,
because the filling out of the proper forms can be automated to a large extent
– lawyers become valuable for their knowledge and negotiating skills rather
than for their ability to follow the steps to draw up a simple will. Some unions’ workers too have found their
skills to be fungible. Jobs move to
Mexico or to new hires at a lower pay scale and with fewer benefits as the
seasoned workers retire. In fact
worldwide, not just in America, the wages of the working class have been increasing
only modestly due to this concept, the fungible nature of those skills and the
ability of companies to find and quickly train a competent workforce elsewhere. Unions who defend their members against
management abuse are doing their job; those who try to protect their members
against the reality that their skills are interchangeable in many parts of the
globe are fighting a losing battle and, in the long term, harming their members
and the companies that pay them.
This should be a warning to every high school student and to
all parents who want to see their children succeed. Common skills are no longer good enough, and
as we move into a future with ever-increasing speed and bandwidth of
communications, the need to develop more specialized and less easily duplicated
skills is essential. It’s no longer realistic
to leave high school and go to work for 30 years in the same factory or mine
that daddy and grandpa did.
We can’t let our children grow up with only “commodity”
skills. It should be an obvious
conclusion by anyone familiar with the ideas behind supply and demand that the
more successful students can be at differentiating themselves from the rest of
the population, the greater their earning power will be. Not everyone can be a star athlete or rap
artist. Education is essential. Otherwise they will be left with fungible
skills, skills that can be duplicated many other places with little effort by
people willing to work for less. The
only other option would be total economic isolationism, which every economist
knows is a terrible idea.
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