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The 3rd Wave

 

We are getting more gung ho, more level up, and wealthier while the cost of goods has remained static. The only poor news is in corporate profits. During this whole time, corporate profits have remained sluggish. There is even reason to believe, given the current accounting scandals and strident calls for accounting reform, that corporations actually experienced a massive decline in profitability over the last few years. .
             So, what happened? The rapid gains in the markets during the late nineties reflected this logic. The .com era reflected this logic. It was all horribly wrong. I think the reason is that the Internet isn't an extension of the past. It is a new thing. Individuals within and outside of corporations have used their control of the information flow to make the markets for products, services, and labor more and more competitive. People have more providers to buy from (globalization) and more organizations to work for than ever before. .
             In the new world enabled by the Internet, people find out about it fast. Public trust in corporations is at an all time low. Andersen, Enron, Schering-Plow, Adelphia, Stanley Tools, Global Crossing, Microsoft, WorldCom, and many more have crossed over the line. All of them have been under intense profit pressure. All have opted to break or bend the law for a short buck. It won't help. If the guys at the top of American corporations think that this is a recourse, they are sadly mistaken. Information travels much too quickly. There is no damage control. .
             If they end up barely producing a profit, but employee salaries rise and consumers get low prices, does that hurt us? No! Sure, the stock market will be a problem, but who cares? The market is merely an abstraction of the wealth formation process and a playground of the wealthy that is often the fleece gullible individual investors. .
             What most of us care about is the ability to think, create, and enjoy.


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