Tuesday, November 2, 2010

revolutionary businesses, loss of productive capacity, collectivist dogma

there has been a lot of hype about monetary policy and the housing bubble as to what has caused our troubles. and while it never hurts to blame keynesian policy, there are other culprits that have exacerbated our decline

know what amazon, eBay, and wallmart have in common? revolutionary business plans that reduce inventory and distribution costs. a lot of those mom and pop stores that are failing are based on outdated business models. why drive to the local electronics store that has a small, old, inventory when the latest version of exactly what you want is only a google search away? want to know what killed mainstream - it wasn't wall street, it was the interweb

then we got the problem of no longer producing anything. i recently heard a speculative assertion that one of the reasons the US was so strong after WWII was that we were the only country whose manufacturing base hadn't been bombed back to the stone age. so unless we plan on bombing china for the first time, and germany and japan again; we're going to need to learn to compete fairly - by producing quality products. right now we're having our hats handed to us

but why compete when the nanny state will take care of us if we fail? the collectivist security net is making it very hard for viable businesses to ... remain viable. that mom and pop store that got hit by those revolutionary business models now needs to pay for your health insurance and that may be the straw that breaks its back

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