End of the Empire

Conglomerates and empires unglued

According to Toffler, conglomerates in the United States and the world are falling apart or changing into something else.  An example of this is dissolution of the empire of the Soviet Union.  Eastern European government and economy has “plunged into a period of near-chaotic change" (17).  He throws out this idea, but offers no support for this statement.  He depends on the reader to interpret this statement and draw the parallels in his argument without him doing it.  One such parallel is the economic and political turmoil that Eastern Europe is experiencing.  Wars are breaking out daily in that area between each minority or majority depending on the latest numbers.  Each side, race, religion, minority, or majority is fighting for control over power in that region exhibiting an example of how the end of the Russian Empire has caused a shift in power in Eastern Europe.

Competition

Toffler points out that the that General Motors company, one of the premier manufacturing companies and political powerhouse in Washington, may see a breakup of the company.  Toffler offers no way of showing why it might break up or how this may be an example of a powershift.  The reader is expected to assume that the breakup of GM will result in the power of manufacturing to shift to smaller companies or another large company due to the competition, but to say the argument is presented would be a gross overstatement.

Toffler uses IBM as another example of the shifting of power in the world today.  Twenty years ago, IBM had very little competition and the “United States probably had more computers than the rest of the world” (17) together.  He says that computer power has spread across the globe and the US grip on the market has “sagged” (17).  Toffler further explains that IBM suffered stiff competition from NEC, Hitachi, and Fujitsu in Japan; Groupe Bull in France; ICL in Britain among others.  Toffler implies that the downfall IBM empire over computers is due to the competition from foreign companies; thus causing the shift of computer power from the United States to Japanese or another foreign computer system.

To dispel the notion that the downfall of companies is due to foreign competition, Toffler uses American television companies as an example.  For many years, ABC, NBC, and CBS dominated American television.  He points out that these companies faced no foreign competition at all, but they are shrinking fast.  After making these statements, Toffler moves to the next subject, leaving the reader an opportunity to speculate about the meaning of his words.  Is he trying to say that the power of these networks is shifting to a new source?  And if so, which one(s)?  One view a reader could take is that cable channels such as USA or TBS is taking the power away from local stations causing a shift in power from the local channels (as ABC, CBS, and NBS are called) and consequently its downfall.  However, Toffler shows no proof or offers any support for his statements.

Uprise of Power

Although the US’s power is declining, Toffler says that that other nations power is on the rise.  Japan's economy has skyrocketed.  Japan's “rust-belt” (18) industries are declining under the wave of new industries.  Toffler does not explain how the Japanese have improved their economy and caused the power shift.  Readers are left to examine this issue on their own.  One logical view of this rise in power is that the Japanese engineers and scientists designed better technology faster than the United States or other world powers, but this is not explained or even stated in the essay.

However, Toffler points out that the rise of industry is changing the political structure of Japan.  The organizations responsible for increase in Japan's economy see their power dwelling.  The Liberal Democratic Party (LDP), the Ministry of International Trade and Industry (MITI), and the Keidanren set up the political foundations for the rise in economic power only to see their power sliding away from them.  Toffler explains that the LDP fall power is due to the financial and sexual scandals, which outraged their women voters, consumers, taxpayers, and farmers who formerly supported it.  These scandals are causing them to shift their voter base from rural voters to urban ones and deal with a more “heterogeneous population” (18) than before.  The MITI is also in trouble of losing its power.  Toffler states that although once Japan's biggest corporations listened to MITI and followed its guidelines, they are growing strong enough to “thumb their noses at it” (19).  He also points out that Japan's newfound power is very strong internationally, but has a weak base politically.  The Keidanren is also losing its power in Japan because it is dominated by “hierarchs of the fast-fading smokestack industries” (19).   Toffler states that the those whose “controls guided Japan through the high-growth period, the oil shock, the stock market crash and the yen rise now find themselves impotent” (19) against the market forces destabilizing the economy, illustrating the shift of power inside the economy of Japan.

Shift of Power in Europe
 
Toffler uses another example of the global quest for economic power.  He points out that in Europe German economy is outstripping the rest.  Thus power is shifting away from London, Paris, and Rome.  As East and West German successfully “fuse their economies” (19), Europe fears German domination.  He also mentions that Western Europe is caught between two power bases, Berlin or Brussels as German influence increases.  Toffler leaves out parts of his argument.  He assumes that the reader will infer that the Europe fears the German domination that was part of Hitler’s reign as chancellor.  If Toffler had done his homework, he should have included that Germany tries to outstrip Europe as far back as the Industrial Revolution when Germany made the first laws toward the regulation of factories and revelry between Germany and Britain in the production of textile products.  Toffler also leaves the reader to know that Germany is on the incline on the latest technology in engineering and automobiles.  However, Toffler mentions none of this, but leaves the work of producing an argument to the reader's imagination.

To avoid a German takeover according to Toffler, the nations of Western Europe (except Britain) are trying “to integrate the European community politically as well as economically” (19).  Toffler does not comment on how this may shift the power or how they're planning on doing this.  Based on news reports, one reader's view may remember the discussion of the integration of Europe economy and how there are no taxes for movement across the countries of Western Europe or the new coin European coin called the Euro, but Toffler assumes the knowledge of the reader rather than providing any concrete evidence of this change.  Another reader may view that if integration were to take place, power would once again shift to the capital of the integrated Europe rather than to Berlin or Brussels as previously assumed.

Toffler points out that one problem with the integration of European community, economically and politically, is that the countries are losing “bigger and bigger chunks of their sovereignty” (19).  Toffler leaves this statement hanging in his essay.  Although it does not explain his meaning, it is very effective way to lead the reader into further thought on the subject.  However, Toffler could argue about the effects of this the shift of power.
 
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Works Cited
        Toffler, Alvin.  "The Powershift Era"  Technology and the Future.  Ed. Albert H. Teich.  New York: St. Martin's Press, 1997.  Pg. 15-23.