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Our New Economy’s Direction September 20, 2009

Posted by tkcollier in Economy & Business.
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The U.S. remains the world’s largest manufacturing nation, larger than China or anyone else.  Many of these manufactured goods are sold outside of the U.S..  U.S. farm products, technology products, consumer products, commodities, and services are also sold abroad.

New Car DirectionBureaucracy and hierarchy were wonderful administrative structures for a manufacturing based economy and for command and control based activities like large scale manufacturing, large military, mass education, and the big government of the 1940’s, 50’s, 60’s, and even the 70’s.  However, since the 1980’s, the efficacy of the command and control oriented hierarchical bureaucracy has been poor.  Since that time, large manufacturing companies have been downsizing and failing with great frequency.

On the other hand, many of the more flexible, quick moving, and technologically advanced organizations have prospered.  One reason for this may be that Technology based companies have flat organizational structures rather than hierarchical bureaucracies.  In addition they often have merit-based promotion and compensation schemes, rather than seniority based promotion schemes.  Guild Investment Letter

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