A popular fallacy is that America’s transition from a manufacturing-based to a serviced-based economy is an example of progress comparable to its transition during the nineteenth century from an agrarian-based to a manufacturing-based economy.

During the nineteenth century, efficiencies made possible by capital investment financed with savings enabled more food to be produced by fewer farm workers. The increased farm productivity freed up labor to make a transition into higher-paying manufacturing jobs similarly created by capital investment financed by savings. The growth in farm productivity that made the industrial […]

If you want to excel in an industry saturated with me-toos, you’re going to have to brand yourself and differentiate yourself.

The first step in building a brand is to have a Unique Selling Proposition or a USP. USP-less businesses offer nothing distinct, nothing unique, no special benefits, no logical reason why someone should buy from them other than hope or circumstance wrapped around a cheap price. Your USP is the anchor to your brand. What […]

Reserve currency status, a badge of America’s preeminence, has been both a blessing and a curse.

The U.S. dollar’s status as the world’s reserve currency has shielded the United States from the consequence of persistent and growing trade imbalances. The Bretton Woods accords made the U.S. dollar the currency used by other governments and institutions to settle their foreign exchange accounts and to transact trade in certain vital commodities, such as […]

Throw out the textbooks

Five of the most successful CEOs I know have five dramatically different management styles. Their relationships with their people are different. Their belief about leadership are different. Their companies’ environments feel different when you walk in. There is more than one right way. My way, what works for me, may very well fail miserably for […]

In market economies, living standards rise as a result of capital accumulation, which allows labor to be more productive, which in turn results in greater output per worker, allowing for increased consumption and leisure.

However, capital investment can be increased only if adequate savings are available to finance it. Savings, of course, can come into existence only as a result of underconsumption and self-sacrifice. The fatal flaw in the modern economy is that any attempt to save and under consume, which woud surely bring bout a badly needed recession, […]