I had a rude awakening yesterday. I was watching a TV show called “Shark Tank” where new product and service ideas are presented, presenting the “sharks” with an opportunity to support the ideas with investment. This becomes a sorting process, bringing the best ideas to market.
A young couple had designed a wonderful new product, made of plastic. The molded components were manually assembled and packaged for shipment, creating a huge labor input for final delivery of the product to the retail seller.
The inventors were patriotic as well as clever and wanted to have the product made in the USA. Unfortunately the “sharks “ were not so patriotic, bundling their offers of investment with an insistence that production be moved offshore to reduce product cost to a minimum. The owners tried to resist but the investors were insistent. Their cost target was to be less than 20% of the product retail selling price. To do this the product had to be manufactured offshore.
These venture capitalists are the designers of America. What we will be in the future will be greatly affected by the thinking of these economic leaders whose economic design parameters have a single focus; the creation of personal wealth for themselves. The result of this limited focus is “economic blindness” with regard to America’s welfare, and future blindness with regard to the impact of our crisis level problems; global warming, overpopulation, and limited supply of hydrocarbon fuel sources .