Tuesday, May 4, 2004

Trends are No Coincidence

The Chicago Boyz outline five trends that led to the U.S. economic boom of the past decade.



The growth in small businesses was one of them: "Many, many people risked their homes and life savings to start small businesses. Small businesses are the biggest source of jobs and economic growth. They are also often the source of innovative ideas."



And the other trends? They were:
  • Investment in information technology


  • Commitment to product quality


  • Demise of labor unions


  • Thinning of management ranks


I think it is no coincidence that information technology proliferated, labor unions lost their power, and management melted away, all at the same time that America's entrepreneurism grew. All of these trends are related. They suggest greater power by the individual. Once information became widely available and started leveling the playing field, large organizations no longer held all the cards.

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