There are many premises that are extolled
about the new economy, and why we must cut costs and reduce overhead,
and general slash savings to the bare bones.
This is simply the dis-ease that the paradox or increase causes the
world to see, eventhough such a thing does not exist. We think that gain
will not come, is we do not work at it.
However, one can realize the existence of this paradox, by simply
looking at the home that we live in.
When we first saw it, that $100,000 dollar price tag, seem enormous.
But some how, for some reason, we decided that it was the thing that we
needed, and this thing was better than the thing we had. So, we persevered
and moved in. Paying that monthly mortgage, or no mortgage for the lucky
ones.
Now, we look back and see that our $100,000 house appears to be worth
$200,000. Did we do anything? Did we move? Did we reduce overhead or cut
costs, or any of these things.
No.
We simply keep up the mortgage and from time to time, we did a few
repairs. And, even found time to add a spouse and a few kids (children
for the sensitive out there). And our initial investment in a house has
become a great investment in a home.
What changed?
WE are getting more and more out of our little house, but it is
costing us less and less. Somewhere along the live value and utility hit
a cross roads.
If I come home tonight and can walk in my door and have a cup of
coffee or tea and listen to some jazz, is this enough?
If my company sold $10,000,000 worth or widgets last year, and the
year before, did I really care weather or not I am going to sell
$10,000,001 worth of widgets this year. And if so, why is that?
Why are there those who think that the house they started with, is no
longer a good buy and need to get a bigger one? Why does a company
decide that because it took 20 people to do the job last year, it s
should only take 19 people to do the job this year. Does that
really make a difference, when you have your cup of tea?
No!
This is why I am so amazed at some of the Mom & Pop
companies and stores that remain in business and active far longer than
many of the biggest corporations in recent years.
Before my enlightenment, I would wonder, "Why don't they do
something to improve themselves?" And this nagging thought would
really bother me, and I really needed to know why!
But, now I realize that they truly understand the Old Economy.
You see, back then when they bought that house, it was what they wanted
and it still is what they wanted.
They did not listen to all those other voices, that kept saying
bigger is better, or newer is great, or lets get ride of the old and
bring in the new!
And they took this understanding into their business and work places.
Because their business was creating the profits that they needed and was
delivering the services and goods that they wanted to deliver to those
who needed them.
They did not care that some Wall Streeter thought that they were not
making progress. Or that their profits were not growing. Besides, they
always wondered, "What the heck does that mean?" After all, we
are not farmers!
And when they really get to thinking about it, they ask "How can
a company lose money each year and still be in business?"
Is this not truly a paradox?
Most of the time, it only means that they made less profit, than the
year before. So, instead of making $10,000,000, they only made
9,999,999. Is this really meaningful?
If we think in terms of profits being what is left over after
we pay all our expenses and costs and what evers, then as long as there
is a net profit, is this not a great thing.
Because a net profit means that we made more money than we needed.
And if we keep making more money than what we need, shouldn't there be a
bank account that is growing and growing and growing with these profits,
each and every year?
After all, our house has doubles in value, as our costs have
dwindled. And will eventually vanish.
Yes. This is a very fine cup of tea.
