Wednesday, June 3, 2015

When USA was Great

We used to know what to do when there was an economic crash:

The Hill Lines: The 1890sSix months after the railroad reached Seattle came the deep nationwide depression called the Panic of 1893.[10] Hill's leadership became a case study in the successful management of a capital-intensive business during the economic downturn. In order to ensure that he did not lose his patronage during the crisis, Hill lowered rail tariff shipping rates for farmers and gave credit to many of the businesses he owned so they could continue paying their workers. He also took strong measures to economize—in just one year, Hill cut the railway's expense of carrying a ton of freight by 13%. Because of these measures, Hill not only stayed in business, but also increased the net worth of his railroad by nearly $10 million. Meanwhile, nearly every other transcontinental railroad went bankrupt. His ability to ride out the depression garnered him fame and admiration. Hill saved money by repeatedly cutting wages, although this was during a time of deflation when prices were falling generally.[11]
Cut costs, cut prices, extend private credit... thrive.

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Anonymous said...

Cost Rica is looking really good: