It’s a natural cycle that any industry goes through.First the new companies are on top and spending money like Banshees with their very high margin products generating large cash flows and free reserves, and as a result they give employees luxury benefits and income and investors fantastic returns.Then as competition stiffens and markets become saturated and Wall Street expects greater returns, these companies turn over control to professional business and money managers; employee perks and benefits are cut, incomes lowered, layoffs occur, and margins reduced. Cash dries up and pennies are pinched.This is capitalism folks and nothing you and I could do will change it; and I’m not so certain we want to change it.Eventually these once new technology companies are replaced by newer technology and the cycle repeats. Experts call this ‘creative destruction’: a process through which something new brings about the demise of whatever existed before itThis is what keeps the wheels moving and the U.S. in the catbird seat of the global economy.

It’s a natural cycle that any industry goes through.First the new companies are on top and spending money like Banshees with their very high margin products generating large cash flows and free reserves, and as a result they give employees luxury benefits and income and investors fantastic returns.Then as competition stiffens and markets become saturated and Wall Street expects greater returns, these companies turn over control to professional business and money managers; employee perks and benefits are cut, incomes lowered, layoffs occur, and margins reduced. Cash dries up and pennies are pinched.This is capitalism folks and nothing you and I could do will change it; and I’m not so certain we want to change it.Eventually these once new technology companies are replaced by newer technology and the cycle repeats. Experts call this ‘creative destruction’: a process through which something new brings about the demise of whatever existed before itThis is what keeps the wheels moving and the U.S. in the catbird seat of the global economy.

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