| France has just unveiled a new AGV (Automotrice | | | | cases, American companies choose not to compete |
| Grande Vitesse) train which will travel at speeds of | | | | at all. |
| up to 224mph. A Japanese train that runs suspended | | | | The question is why? |
| over the tracks by magnetic levitation is even faster | | | | The answer lies in a difficult to draw, subtle |
| —more than 360 miles an hour. Our fastest trains | | | | distinction between companies that provide products |
| run at the rate of 54mph, still being propelled by | | | | and services to be in business, and companies that |
| diesel-electric engines that were developed in the | | | | are in business to provide products and services. |
| 1940s. | | | | Many would ask, what’s the difference? |
| The Organization for Economic Co-operation and | | | | Those that provide products and services to be in |
| Development (OECD) report says 60% of its | | | | business, have their eyes on the bottom line while |
| member countries’ net users are now on | | | | those that are in business to provide products and |
| broadband. The report said countries that have | | | | services, have their eyes on the assembly line. The |
| switched to fiber networks have the best speeds at | | | | former companies are characterized by “one |
| the lowest prices. In Japan net users have 100Mbps | | | | fewer olive in each jar to provide a greater |
| lines and upload at the same speed they download, | | | | return.” Shoppers find companies like these every |
| which is not possible with ADSL (broadband over a | | | | day while shopping in grocery stores; companies that |
| telephone line) and most cable subscriptions. Sweden, | | | | reduce the quantity inside the box without reducing |
| Korea and Finland also offer 100Mbps net | | | | the size of the box or the price. |
| connections. Additionally, Japan’s price per Mbit/s | | | | Many American companies do not even attempt to |
| is the lowest in the OECD at $22.00 per month. | | | | provide high-quality products. Consider the huge |
| Americans like to believe that American companies | | | | nutritional supplements industry. It would be neither |
| are on the cutting edge of technology, but they are | | | | difficult nor expensive to subject the many vitamins, |
| not. In fact American companies have a history of | | | | minerals, and herbal concoctions marketed to |
| falling behind, even with technologies introduced in | | | | double-blind testing. But the nutritional supplements |
| America, such as the Internet. | | | | industry does not want to do that, because it |
| Robert H. Goddard, an American, launched a | | | | doesn’t care whether its products are effective |
| liquid-propellant rocket in 1926. The Germans were | | | | or not. The quality of products is not the |
| bombarding England with intercontinental ballistic | | | | industry’s concern; only the bottom line is. The |
| missiles in the 1940. But when the Russians launched | | | | American fast-food industry doesn’t care |
| the first satellite into space, and America went into | | | | whether its products are nutritious or even conducive |
| crisis mode to respond, we watched attempted | | | | to their customers’ health. What it cares about is |
| rocket launch after attempted rocket launch explode | | | | the bottom line. And if its products contribute to the |
| on launching pads. It was only after we gave U.S. | | | | ill health of Americans, well, that’s just too bad, |
| citizenship to a group of World-war II German war | | | | but of no concern to the industry. |
| criminals that we managed to learn how rocketry | | | | Americans hold absolutely ludicrous ideas about the |
| worked. Between 1926 and the launching of John | | | | nature of business. It is said, for instance, that the |
| Glenn into orbit, no American company had any | | | | only stake-holders a company is responsible to are its |
| interest in rocketry. | | | | shareholders, even though companies often appear |
| Again during World-war II, American industrial might | | | | to be operated for the benefit of their officers. Yet |
| could not build small arms, tanks, or airplanes that | | | | a business is a social entity, created in accordance |
| matched the quality of those built by the Germans | | | | with the laws of the society it exists in, and as such, |
| and those ‘backward’ Russians. American | | | | has the same social responsibilities that all citizens |
| M4 Sherman tanks were no match for the German | | | | have. To hold otherwise can have disastrous national |
| VI Tiger or even the Russian T-series tanks. And it | | | | consequences, for if a company’s only |
| was only after Americans got to reverse engineer | | | | responsibility is to make money for its stockholders, |
| captured German jet fighters after the war ended | | | | even profitable, treasonous acts would be permissible. |
| that we learned how to build jet airplanes. | | | | If China or Russia or any other nation is willing to pay |
| The American steel industry collapsed in the face of | | | | enormously high amounts for military secrets, how |
| imports of steel from Japan, whose steelmakers | | | | can a company be prohibited from selling them if the |
| were using newer technology which was available to | | | | company’s only responsibility is to its |
| but never utilized by American steelmakers. American | | | | shareholders who would be made wealthy by the |
| healthcare suffers when compared to the healthcare | | | | sale? |
| people in other industrial countries receive, something | | | | The absurd idea that businesses exist only to make |
| so well known that no further comment is required. | | | | money for their owners is why Americans do not |
| So why do Americans experience lower quality | | | | enjoy the quality of products and services that are |
| products and services than the citizens of other | | | | available to citizens of other industrialized nations. |
| industrial countries? The only possible reason is that | | | | Implementing newer technology costs money, which |
| American companies do not want to provide them. | | | | at least temporarily reduces the return to owners. |
| Those running our railroads don’t want to build | | | | America will not be a nation that operates on the |
| and run high-speed trains, and American telephone | | | | cutting edge until everyone realizes that companies, |
| and cable isps don’t want to provide Americans | | | | just as individual citizens, have responsibilities not only |
| with 100Mb service. The American steel industry did | | | | to their shareholders, but to their employees, their |
| not want to invest in newer technology; it chose, | | | | suppliers, their customers, to society in general, and |
| instead, to go out of business. And the American | | | | to the nation which enables them to operate. Nations |
| automotive industry seems to be headed to | | | | that fail to enforce these responsibilities are doomed |
| extinction too. Americans like to think of America as | | | | to mediocrity if not complete failure. |
| the great arena of competition, but in too many | | | | |