Including China.
First we need to separate out the welfare queens whose antics are the stuff of the "case study" business school lessons. There are the endless examples of say, GE inshoring, full of platitudes and earnest insistence on underlying principles, specific tactics, and expression of admiration.
Never mind GE is a welfare queen that has at every disaster, lurching from one to another, bailed out by taxpayers. Fukushima, anyone? GE Capital bailout? And in spite of being bailed out, they still need to steal?
For these large welfare queen companies, there is no accountability for the managers that run them. They need only generate some noise, and then no matter what, they will be bailed out. The business schools then take each new disaster and color it a huge success, full of platitudes and earnest insistence on underlying principles, specific tactics, and expression of admiration. Your tax dollars at work.
Next, people so brilliant are invited to advise presidents on how to regulate the economy. How is that system working out for us right now?
So leave out all of those entities, the Fortune 5000, a succinct welfare roll if ever there was one, and get to people who are accountable for their results. They are in a position to compete. And let's look at who is currently the best competitor on the block, China.
China exported $50 billion in automobiles in 2010, not a single one to USA. They are getting their systems down. When they export to the USA, their products will be new to us, but old hat to the rest of the world, with all bugs worked out. By that time the cars will be superior to anything the USA makes.
In the meantime the Chinese are developing domestic parts supplies, for when the inevitable backlash comes, and the Chinese need to build in USA and take the profits back to China.
First, the common error wherein Americans believe cheap labor matters. It does not. Cheap management makes the difference, and China will manage the production of first class cars in the USA cheaper than USA management. Advantage China.
Second, intellectual property rights. The Chinese will exploit those as well as USA industry did and crowd out innovation and competition in USA.
When we bailed out Ford, GM, Chrysler etc (I know, everyone says Ford was not bailed out, but they were) we should have opened source on all of their "intellectual property." Getting rid of IPR in USA will cause a renaissance in automobile manufacturing.
When we give power to an elite, that elite no longer has any reason to behave. Asymmetry. The Chinese are excellent at study and copy. Time to retreat to freedom, where there is no telling what is next. There is the unbeatable competitive advantage we can have.
Feel free to forward this by email to three of your friends.
First we need to separate out the welfare queens whose antics are the stuff of the "case study" business school lessons. There are the endless examples of say, GE inshoring, full of platitudes and earnest insistence on underlying principles, specific tactics, and expression of admiration.
Never mind GE is a welfare queen that has at every disaster, lurching from one to another, bailed out by taxpayers. Fukushima, anyone? GE Capital bailout? And in spite of being bailed out, they still need to steal?
For these large welfare queen companies, there is no accountability for the managers that run them. They need only generate some noise, and then no matter what, they will be bailed out. The business schools then take each new disaster and color it a huge success, full of platitudes and earnest insistence on underlying principles, specific tactics, and expression of admiration. Your tax dollars at work.
Next, people so brilliant are invited to advise presidents on how to regulate the economy. How is that system working out for us right now?
So leave out all of those entities, the Fortune 5000, a succinct welfare roll if ever there was one, and get to people who are accountable for their results. They are in a position to compete. And let's look at who is currently the best competitor on the block, China.
China exported $50 billion in automobiles in 2010, not a single one to USA. They are getting their systems down. When they export to the USA, their products will be new to us, but old hat to the rest of the world, with all bugs worked out. By that time the cars will be superior to anything the USA makes.
In the meantime the Chinese are developing domestic parts supplies, for when the inevitable backlash comes, and the Chinese need to build in USA and take the profits back to China.
Chinese-owned companies are investing in American businesses and new vehicle technology, selling everything from seat belts to shock absorbers in retail stores, and hiring experienced engineers and designers in an effort to soak up the talent and expertise of domestic automakers and their suppliers.The Chinese will benefit in two ways:
While starting with batteries and auto parts, the spread of Chinese business is expected to result eventually in the sale of Chinese cars in the United States.
First, the common error wherein Americans believe cheap labor matters. It does not. Cheap management makes the difference, and China will manage the production of first class cars in the USA cheaper than USA management. Advantage China.
Second, intellectual property rights. The Chinese will exploit those as well as USA industry did and crowd out innovation and competition in USA.
When we bailed out Ford, GM, Chrysler etc (I know, everyone says Ford was not bailed out, but they were) we should have opened source on all of their "intellectual property." Getting rid of IPR in USA will cause a renaissance in automobile manufacturing.
When we give power to an elite, that elite no longer has any reason to behave. Asymmetry. The Chinese are excellent at study and copy. Time to retreat to freedom, where there is no telling what is next. There is the unbeatable competitive advantage we can have.
Feel free to forward this by email to three of your friends.
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