Dr. North's Prognosis

"Anyone who thinks we have not entered a new era is naïve. The central economic phenomenon today is price competition. Whenever any technological development undercuts the existing cost basis of any established sector of the economy, it poses a threat to that sector. Peter Drucker's rule is this: when a new technology sells for 10% of the old technology, the old technology is doomed. Think "handmade Swiss watches." There is nothing that the defenders of that technology can do to stop the destruction of their industry."


Correct as usual Dr. North. Since innovation and competing on design is not central, what is left is price competition. Narrrowing profits and grinding down the price more of what we do not need is no way to gain material progress. if we had a freer market in USA, innovators would be producing newer and better alternatives and we'd have gainful employment of people effecting these changes.

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