The new economy and its clay feet?
While the new economy just rolling along. The inflation is subdued by surplus production and substitutional supplies. The real danger lies in the reinvestment of the profits. The reports of excessive cash positions of many companies, all in $ billions. Although coupled to formation of American, Inc. the plans of American, Inc has not yet been seriously implemented in corporate America.
Chysler management due to proactive stockholders action, did put their cash to work. Chrysler did expand into Japan, and Vietnam. And, while they had no foreign investments 10 years ago, now there are plans in south America and Europe.
The investment strategy in this new economy has to be very much in the minds of business leaders, or we will put the money in dead storage and earn small interests. We must be bold and reinvest, build America, create jobs with our surplus cash. We must find complementary and supplementary economies around the world. We might start with heavy equipment and automated production lines. Submicron semiconductor plants are $1.5 billion each. Automobile factories are $1.3 billion each. Farm combines are $200,000 each. Commercial airplanes are up to $100 million each. Automobiles are $10,000 and up each.
We must go out to the world and help them manage creating jobs, and building distribution systems. And raise their standard of living so that our products and services can be affordable. We have the cash to do all that.
Don't waste it. |
