Friday, March 04, 2005
Economic eye-opener
Larry Kudlow just asked the type of question that makes you
screech to a halt and really think.
We're full of angst about high oil prices, caused by the ever-increasing
demand from India and China. How can we afford it? How can we keep
growing? Well, India and China are paying the same price per barrel,
and even though they're starting from a much lower level with little cash
to spare, they are growing by leaps and bounds.
So what was *our* problem again?
I like this type of self-destroying proposition. Another example:
In 1880, small businesses moaned and wailed about the threat from
mail-order firms like Sears and Wards. In 1920, small businesses moaned
and wailed about the threat from chain groceries like A&P. Since 1970,
small businesses have moaned andwailed about Kmart and Wal-Mart.
Since 1995, small businesses have been moaning and wailing that the
Web will destroy them.
What's the common factor in all of these statements?
Small businesses are moaning and wailing.
What does this tell you?
Small businesses were not in fact destroyed by any of those threats;
some individual businesses went under, but the fact that each new threat
brings forth the same hue and cry tells you that the total population
rebounds each time. ¶ 2:30 PM
screech to a halt and really think.
We're full of angst about high oil prices, caused by the ever-increasing
demand from India and China. How can we afford it? How can we keep
growing? Well, India and China are paying the same price per barrel,
and even though they're starting from a much lower level with little cash
to spare, they are growing by leaps and bounds.
So what was *our* problem again?
I like this type of self-destroying proposition. Another example:
In 1880, small businesses moaned and wailed about the threat from
mail-order firms like Sears and Wards. In 1920, small businesses moaned
and wailed about the threat from chain groceries like A&P. Since 1970,
small businesses have moaned andwailed about Kmart and Wal-Mart.
Since 1995, small businesses have been moaning and wailing that the
Web will destroy them.
What's the common factor in all of these statements?
Small businesses are moaning and wailing.
What does this tell you?
Small businesses were not in fact destroyed by any of those threats;
some individual businesses went under, but the fact that each new threat
brings forth the same hue and cry tells you that the total population
rebounds each time. ¶ 2:30 PM
