From: Max More (max@maxmore.com)
Date: Tue Dec 21 1999 - 13:51:14 MST
Here's a synopsis of the article from Harvard Business Review that I
alluded to:
THE NEW ECONOMY IS STRONGER THAN YOU THINK
William A. Sahlman
Many policy makers at the Fed contend that the new economy is a fragile
bubble -- and that with the "irrational exuberance" of the capital markets,
the sky is going to fall on the U.S. economy. That couldn't be further from
the truth, according to William Sahlman. As long as the government doesn't
interfere, he argues, the economy is sturdy, resilient, and raring to grow.
The new economy is strong for several reasons. First, it is based on a
business model that works. Any business system that relentlessly drives out
inefficiency, forces intelligent business-process reengineering, and gives
customers more of what they want will be sustainable. Second, it is built
on America's admiration for entrepreneurs and its tolerance for failure,
not to mention its easy access to capital. Third, the new economy is
attracting the best and brightest minds in the country. And finally, says
Sahlman, the new economy is strong because it is spreading. It may be
primarily an American phenomenon now, but in a few short years it will
start to show its effects everywhere, making the whole world a more
productive place.
Still, Sahlman believes, the road ahead is not without potholes and sharp
curves. But that is what the new economy is all about, he maintains --
companies attacking the status quo and entrenched players, companies
experimenting to find new technologies that improve or replace earlier
ones. Such activity presents no cause for alarm. The economic, social, and
cultural factors undergirding the new economy are rock solid. It's simply a
matter of letting them stand.
The above synopsis and ordering information for the article can be found at:
http://www.hbsp.harvard.edu/products/hbr/novdec99/99612.html
Onward!
Max
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