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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (71013)	11/28/1999 2:38:00 PM
From: Don Lloyd	Read Replies (1) \| Respond to of 132070

Wayne - [[I agree with everything you said. I have a little problem with the word 'destroy' because I like to think of it in terms of depreciation and replaced capital. Sort of the same amount of capital allocated in a different and improved form. In my mind advanced technology works almost the same as the old fashioned tools that were replaced by better versions over time.]] If I have a large physical plant dedicated to manufacturing vacuum tubes at high efficiency, 'destroy' is not too strong a term if the transistor emerges rapidly enough. When capital is in the form of cash, it is almost infinitely flexible. Once it becomes physical plant, it is both an ongoing maintenance expense and a sunk cost. It will only remain a competitive advantage if all potential competitors need to make equivalent investments. Remember the phrase is 'creative destruction'. Regards, Don