Old Product, New Time

Once upon a time, a long time ago, there lived a large community of people who made a technological gadget that persuaded forward motion so that a type of "engine" gave a certain amount of horse power and vehicles could move forward at a good pace. This community of workers included design elements, production, manufacturing and advertising as well as dealers who sold the goods. They were ahead of their time and they had a great product. There were people who made fortunes at the top of their field. Every household needed at least one and it seemed very recession proof.

There was an entire city of people devoted to this effort and other businesses grew up around it to support the workers and salesmen and manufacturing plants. After a while, new technology was developed and the community elected to continue making the products they always had, rather than turning everything upside down and embarking on newer methods that would only dilute their efforts.

As newer technology developed more and more workers were put out of business. The paternalistic community had always cared for its' workers. In fact, even when workers were not required, they were paid some money so that they would be available if ever needed again.

So what happened? Well, they made the wrong bet. There was an entire industry of people who made these products and the new technology overshadowed and overtook their business. Would you have invested in it to keep it alive? Should our government have given them money to keep their workers employed? Even though no one wanted their products?

Who were these people and what happened? Well there is a very small market for buggy whip manufacturers today. I am sure they never really believed that cars would completely replace horses and oxen. This had been the main source of transportation and power for agriculture for centuries. Is GM and its' business model really that different? What will ultimately happen if we sink 50 Billion into a dying business model? A Job Bank model where most of those paid are not working? Wouldn't some of them have left to find their fortune elsewhere?