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To: Sean_Anthony

“The nation requires an economy in which new businesses are created and existing ones can afford to expand.”

While new businesses are always needed, perpetual expansion is a modern phenomenon and cannot last.

Businesses have a life cycle, much like the seasons. We have long seen a “Spring” cycle of innovation and new growth, as we tend to focus on this. But businesses typically enter a “Summer” period, where they fill an existing need, but their emphasis is on doing so efficiently, not innovating new products and services.

The “Fall” cycle is more complex. In some cases, businesses have become stagnant and are failing; but in many others, efficiency now means to build surpluses and resources for an economic downturn. As with soon to be hibernating animals, building up fat for the winter.

The “Winter” cycle is the shake out of businesses that are not in good condition and need to fail.

Importantly, some businesses reach a structural point where they just continue doing what they are doing for generations, jobs passed from parents to their children.


5 posted on 12/14/2014 11:39:56 AM PST by yefragetuwrabrumuy ("Don't compare me to the almighty, compare me to the alternative." -Obama, 09-24-11)
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To: yefragetuwrabrumuy

Some businesses do not have seasons but most do based on supply and demand. Sadly economics these days downplays supply and demand econ.


7 posted on 12/14/2014 11:45:55 AM PST by Lumper20 ( clown in Chief has own Gov employees Gestapo)
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