Feudalism, as a form of land ownership, prevailed until land became a readily marketable commodity. Industrial production, in the form of protectionist mercantilism or national industrial policy still prevails, but is in the process of being swept away by globalization of free trade and by the lowering of transaction costs through electronic commerce.

At this stage of USA development over 67% of all wages and salaries are for information work. I estimate that at least a half of that pays for people whose jobs are unaffected by a competitive marketplace. This includes just about all corporate bureaucracies (consuming about one third of the total cost of goods sold), just about all government plus a vastly wasteful support infrastructure such as in health services, law and education.

The most plausible forecast of what is likely to happen can now be based on what occurred in the past: when the accumulation of inefficiencies becomes unaffordable innovative institutions will deliver the means for creative destruction of whatever is not viable.

The future of the new era based on competitive marketing of Knowledge Capital services is emerging. Over the next decade we will see a transformation from fixed overhead costs - set by fiat - to competitively priced variable services - with values set by the marketplace.

That change will be at least as painful as what has happened in the past when monopolies had to yield to competitive encroachments. As we keep marveling about the harnessing of information technologies in the service of knowledge management we must be reminded that all revolutionary changes have been always countered by counter-revolutionary reactions.

The destination of knowledge services is clear, but how long it will take to get there is still a guess and gamble.