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How many times have you heard the following, “the heavyweight division sucks!”, “the heavyweight division is boxing’s glamour division”, “as General Motors (GM) goes, so goes America.”
Most of us have heard the first two. If you are older or aware of the history of the American economy then you’ve also heard the last one. The premise of the comment was that GM employed a certain amount of people that made cars, car parts and the like. Those cars were then sold in car lots that employed salesmen, office workers, mechanics, managers, and others. In turn, as the automobile, specifically GM autos such as Chevy, Cadillac, and Buick hit the road and started to break down, even more jobs were created at gas stations and repair shops.
In short, their one company was the largest corporation in America (in terms of its revenues as a percent of GDP), and as a result they were responsible for the livelihood of so many Americans that if they failed as a company it would endanger the economy in our country as a whole.
However, this notion could not continue if the United States was to continue to grow economically. So the economy shifted and became diversified to survive and grow. It had to. Had the United States not put policies in place to allow this to happen our economy would have become stagnate and eventually regressed. To put it simple, you can’t put all of your eggs (investment) in one basket, because sooner or later something bad will happen to those eggs and leave you without the money from the investment to implement a new plan of attack. [details]
Most of us have heard the first two. If you are older or aware of the history of the American economy then you’ve also heard the last one. The premise of the comment was that GM employed a certain amount of people that made cars, car parts and the like. Those cars were then sold in car lots that employed salesmen, office workers, mechanics, managers, and others. In turn, as the automobile, specifically GM autos such as Chevy, Cadillac, and Buick hit the road and started to break down, even more jobs were created at gas stations and repair shops.
In short, their one company was the largest corporation in America (in terms of its revenues as a percent of GDP), and as a result they were responsible for the livelihood of so many Americans that if they failed as a company it would endanger the economy in our country as a whole.
However, this notion could not continue if the United States was to continue to grow economically. So the economy shifted and became diversified to survive and grow. It had to. Had the United States not put policies in place to allow this to happen our economy would have become stagnate and eventually regressed. To put it simple, you can’t put all of your eggs (investment) in one basket, because sooner or later something bad will happen to those eggs and leave you without the money from the investment to implement a new plan of attack. [details]
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