|Summer 1991||REBOUND Volume 2|
The Economic Laws Of Nature
As of mid-summer 1991, the United States is in a serious economic recession, bordering on a depression. Americans are sitting around waiting for an economic recovery. What people in this country do not realize is that, due to the influence of current education practices, the economic fabric of this nation has been destroyed. Under present circumstances, an economic recovery is impossible.
Under the destructive influence of current educational practices, Americans have broken the laws of nature which govern economic stability. For example, a sound economic structure always comes out of a nation's ability to make and produce the things that are needed by the people of that nation. Any economist with a brain (of which there are now very few) can tell you that a nation the size of the United States cannot survive indefinitely without a strong manufacturing base, which America no longer has.
There was a time when Americans understood the importance of building and making things. But this was a time when people were not being subjected to excessive education and when children still spent enough time with their parents to be able to acquire real physical world skills. This was a time when manufacturers were actually interested in making a product. They were interested in improving the quality of their products first and improving their incomes second, third, fourth or tenth. Henry Ford, for example, knew how to make things. He was intensely interested in making cars. He realized that if he could make a reasonably priced gasoline powered buggy that people would buy his products and that earning money would take care of itself.
Henry Ford was not a business school graduate. Business school graduates have no skills. They have no ability or interest in making or building things. Business school graduates are not interested in products. Business school graduates are only interested in profits. If Henry Ford had gone to business school, he would never have become a successful automobile manufacturer.
A corporation can become successful only when the person in charge of the corporation, the CEO, has physical world skills and is intensely interested in making a product that people really need. Successful car manufacturers have to like cars and want to make them. Successful steel manufacturers have to like steel and want to produce it. Successful railroad presidents have to love railroads and want to run them. If a company is manufacturing a good product that people need at a reasonable price then financial success will naturally follow. Successful corporations have always started out with an individual's keen interest in making a product such as a car. Successful corporations never begin with an individual's (such as a business school graduate) desire to make a profit. You have to want to make something first and profit from it second.
Corporate presidents are no longer chosen for their interest in a product or their ability to successfully manufacture that product. Corporate presidents today are people who are manipulative enough and clever enough to get to the top of a company. These are people who do not give a damn about making a good product and, in fact, consider making the product as an inferior thing. They are people who rise to the top on their personalities and are concerned with one thing only--profit.
Corporate presidents who have no physical world skills, who do not know how to make and build things, and who have no interest in the product being manufactured can do one thing only--drain a company of its resources. This is why so many long-standing, once-stable American corporations have been destroyed in the last 20 years. Corporations are no longer looking for leaders who have proven themselves. If corporations want to survive, they must find corporate leaders who have proven themselves. They must look for people who are intensely interested in the product being manufactured, who have previously set up and successfully run a company, and who know how to get along with people. The raw talent for a successful CEO is NEVER found among the middle management business school graduates with manipulative, aggressive personalities. The raw talent for a successful CEO is someone who knows how to make the product that is being produced, likes the product, is able to manage people and can be moved up slowly to the position of CEO. Profit-oriented business school graduates are always going to destroy corporations because characterologically, their aggressiveness is in the wrong place.
Successful corporations are always led by people who want to make something that is needed and are able to engage other people (who also want to make things) in helping them do that. Middle management business school graduates are people who are looking for a job. They are ones who send out 250 resumes to places like IBM, General Motors, Fairchild, Boeing, Eli Lillie, General Electric, Martin Marietta, General Dynamics, etc., etc. because the product being manufactured is completely irrelevant to them. These are people that companies must stay away from because they are people who want only to get ahead personally. These ideas are contrary to corporate success. Most companies could eliminate 80 percent or more of their middle management staff and keep only those people who are interested in making the product and who want to get along with other people. Most middle management people are self-promoting babies and as such are perfect products of this nation's educational system. Their responsibilities and functions could easily be taken over by people in the work force. The only reason that this is not done is that corporate leaders have fallen for the myth that if you do not pay high (often exorbitant) salaries then you will not get good people. And the truth is that companies cannot get good people because they are paying high salaries. All they are getting is people who are interested in high salaries.
Business schools in this country have bought on the destruction of American corporations. Under the influence of business school teachings, corporate leaders have concluded that anything that appears to maximize corporate profits should be done. They think that if moving an already successful corporation from Hartford, Conn. to East Overshoe, Brazil will increase profits, then that is what should be done. But this is an energetic violation of economic law. Products must be produced in the societies in which they are being used and are needed. Products must be native to the society in which they are being produced. So, while it might appear that the successful corporation which has moved from Hartford, Conn. to Brazil is helping to improve the economy of Brazil, the effect of that company on Brazil will ultimately be negative. The introduction of that corporation into the energetic structure of Brazil is the same thing as bringing a deadly bacteria into the country and injecting it into Brazilian citizens. The introduction of the foreign corporations causes the natural environment to break down, and causes poverty and crime to go up. This is a well-documented fact. Furthermore, moving viable corporations out of this country has contributed to the long-term destruction of the American economy. So, while those corporations have moved to Brazil in order to produce their products more cheaply, so many Americans have lost their jobs because their companies moved out of the country, that many Americans no longer have the money to buy the products which are being produced in Brazil. So in the end, these corporations intent on maximizing their profits have destroyed the American economy, and in doing so have destroyed themselves.
Educated people have lost their way. Corporate leaders who are concerned with maximizing their profits have lost sight of what they are doing. Their focus is in the wrong place. They have lost sight of the intention of the person who started the business, which was to make a good product at a fair price. The economic laws of nature are simple. A successful corporation always starts with someone who is intensely interested in making something that is needed and who wants to get along with other people. Neither of these things can be taught in business school. It is ridiculous to think that they can be. All of the big successful corporations in this country started this way and followed this formula. Now, educated people are cut off from finding out how to make and build things. The natural time for children to build and make things and to find out about physical reality is between the ages of five and ten years. American children are robbed of these experiences and are confined to prisons called schools. When this is done to human beings, all that they can do is try to make money, which is the same thing in the human consciousness as trying to make good grades. Under these conditions, the American economic system can only continue to decline into failure.