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Why Companies Aren't Spending More Money
- T-A 13y agoNot really "new", though. Sounds a lot like Average is Over: http://online.wsj.com/news/articles/SB10001424052702303342104579097482945031804 http://online.wsj.com/news/articles/SB1000142405270230334210...
- ArkyBeagle 13y agoThe flip side of this is that technology has enabled more and more mediocre companies to stay in business. All companies will be mediocre at some point; tech enables latching at that state and coasting. Jack Welch codified the rules for living off the stored energy in a formerly-good company's flywheel and that's been the standard. Not to be rude, but touting Apple's brilliance at design is a bit of buying PR-propaganda spiced with cynicism about leaving buttons off things. I saw the transition back to Jobs' leadership indirectly, through people I sort of knew online leaving Apple. It struck me then as Welch-ism writ large.
- pcurve 13y agoDirect link to El Erian's article with his 5 reasons. http://bit.ly/1kCYOM5 http://bit.ly/1kCYOM5 If you read his 5 reasons, you'll notice that there's one string that ties them all together: interconnected global economy with strong influence by large conglomerates. The more your country is dependent on these multinational companies, more you will be at the mercy of ups and downs of business cycle. Sadly, most industrialized countries are full of them, but there are some exceptions, including Iceland. Iceland, despite almost going under, recovered quickly partly because it unloaded its debt fast, and its small size made the country relatively free of multinational's influence. Japan seems to be everyone's punching bag for being in economic doldrums. But a visit to the country will make you realize that there's a fair balance of multinationals and local companies that evens out the pace of domestic consumption and investment. However, that balance has been breaking for awhile.