While others, like Compaq, like Bethlehem Steel died, and they died, because they were fragile.
Because their arrangements, no longer reflected what made value.
The fact that the economy, as an imperitive, must constantly renew itself, is part of what makes protectionist ideas so problematic.
You don’t know if what you’re protecting, is something that is supposed to die.
Businesses can be lemons, entire organizations can be so wrongly oriented, that no amount of change in management or composition can fix it.
Or they can just be so very poor at adapting new paradigms in their industry, that they never catch back up.
And when you have just a handful of oligarchs occupying that industry to begin with, that means their failure ushers in a sea change.
Their failure results in 1,000s, if not 10s of 1,000s being displaced. Yet still, it doesn’t make it any less necessary, because we know what happens when you don’t allow this. And it’s far worse.
No, it’s our regulation atmosphere. Regulation by its very nature serves large interest in the market. Their costs accrue, disproportionally to small businesses, while large ones get an advantage, because they can merge, they can have costly legal staffs to advocate for themselves, or argue a point, and hire lobbyists who will get them a seat at the table for writing those rules.
Trade, meanwhile, has been an equalizer, where small businesses can leverage capital to do things they otherwise couldn’t. Things only big businesses could do in the past.
When I can order intricate machinery, off my phone, from a dealer in China, without all the complicated middlemen and red tape that typiified large corporate-style logistics, that’s a win for the common man, not a loss.
It means starts ups become more common, and that’s what you need in order to experience renewal. To build & have a future.
You know what was actually lost Cwolf, you can’t put this realization off. You just admitted to it not too long ago, when you told me that clothing hanger production wasn’t part of the Plan.
Low value, low margin manufacturing, that poor places just getting industrialized around the world can easily handle. We don’t have any need to hold onto that, and we shouldn’t be writing laws to try.
It’s short sighted, and puts places in this country in stasis.
The truth is, manufacturing never dropped in America; we simply moved to producing more durable, high quality, high margin goods, and automation turned 10,000 member factories into ones that can be staffed with less than 200.
That’s the reality. “Domestic production” never stopped growing, and is where it should be. What production did die, was supposed to die, because it represented an earlier time & place, when America was less developed, and was more like the places that have largely taken that low value manufacturing over.