For shareholders the bottom line is their ROI, return on investment. But the bottom line on what's going to bring back jobs in this economy is IOR: Innovation + Obsolescence + Replacement. As innovation progresses the status quo becomes obsolete. Once that happens the desire for replacement kicks in, and that's when the economy is going to be "off to the races" and jobs (hiring) will be back!
The cycle is this simple: Innovation leads to new & better. New & better can be exploited by entrepreneurs and businesses to gain a competitive advantage against the old and obsolete. Investment in innovation leads to investment in business which leads to new jobs! IOR = Change. Change is to entrepreneurs like oxygen is to a flame And, entrepreneurship is the heart of capitalism!
Let me give you a couple examples:
- Your TV is fine...until there's a new "Google TV" that lets you watch Internet TV with interactive information and shopping features.
- Your phone is fine until you need a 4G Droid Smart-phone
- Your car is fine until you want new on-board technology and better fuel efficiency
- Your guitar is fine until there's a new feature that keeps it in tune better
- An 747 aircraft is fine until there's a revolutionary new 787
Americans are great innovators and IOR will switch into high gear here! But we don't have an exclusive on IOR in a global economy. But you know who really stinks at innovation and IOR? Unions and government! They are the "status quo" and we need them to replace the way they think and do business!! And if they don't - Americans need to replace them!!
Nov. 2010