ABSTRACT
George Ritzer argued that a "permanently new economy" emerged in the United States (US) generated by changes in technology and knowledge, demographic shifts, external changes in the world economy, and internal changes in US labor and industrial relations. As responsibility to acquire useful job skills shifted from the employer to the employee, a vicious cycle developed, generating downward spirals in human capital formation. Human resources managers could more selectively recruit, train, and place employees in jobs where their skills were most suitable. Externalized employment relations also weakened the rationale for companies to collaborate in developing their employees' human capital skills. A privileged core of employees enjoyed high job security and good benefits but was immersed in an expanding peripheral workforce having more fragile ties to the corporation. The chapter also presents an overview of the key concepts discussed in this book.
