America on the Dulling Edge

France has just unveiled a new AGV (Automotricebut in too many cases, American companies choose
Grande Vitesse) train which will travel at speeds of upnot to compete at all.
to 224mph. A Japanese train that runs suspendedThe question is why?
over the tracks by magnetic levitation is even fasterThe answer lies in a difficult to draw, subtle distinction
-more than 360 miles an hour. Our fastest trains run atbetween companies that provide products and
the rate of 54mph, still being propelled by diesel-electricservices to be in business, and companies that are in
engines that were developed in the 1940s.business to provide products and services. Many
The Organization for Economic Co-operation andwould ask, what's the difference?
Development (OECD) report says 60% of its memberThose that provide products and services to be in
countries' net users are now on broadband. The reportbusiness, have their eyes on the bottom line while
said countries that have switched to fiber networksthose that are in business to provide products and
have the best speeds at the lowest prices. In Japanservices, have their eyes on the assembly line. The
net users have 100Mbps lines and upload at the sameformer companies are characterized by "one fewer
speed they download, which is not possible with ADSLolive in each jar to provide a greater return." Shoppers
(broadband over a telephone line) and most cablefind companies like these every day while shopping in
subscriptions. Sweden, Korea and Finland also offergrocery stores; companies that reduce the quantity
100Mbps net connections. Additionally, Japan's price perinside the box without reducing the size of the box or
Mbit/s is the lowest in the OECD at $22.00 per month.the price.
Americans like to believe that American companiesMany American companies do not even attempt to
are on the cutting edge of technology, but they areprovide high-quality products. Consider the huge
not. In fact American companies have a history ofnutritional supplements industry. It would be neither
falling behind, even with technologies introduced indifficult nor expensive to subject the many vitamins,
America, such as the Internet.minerals, and herbal concoctions marketed to
Robert H. Goddard, an American, launched adouble-blind testing. But the nutritional supplements
liquid-propellant rocket in 1926. The Germans wereindustry does not want to do that, because it doesn't
bombarding England with intercontinental ballisticcare whether its products are effective or not. The
missiles in the 1940. But when the Russians launchedquality of products is not the industry's concern; only
the first satellite into space, and America went intothe bottom line is. The American fast-food industry
crisis mode to respond, we watched attempted rocketdoesn't care whether its products are nutritious or
launch after attempted rocket launch explode oneven conducive to their customers' health. What it
launching pads. It was only after we gave U.S.cares about is the bottom line. And if its products
citizenship to a group of World-war II German warcontribute to the ill health of Americans, well, that's just
criminals that we managed to learn how rocketrytoo bad, but of no concern to the industry.
worked. Between 1926 and the launching of JohnAmericans hold absolutely ludicrous ideas about the
Glenn into orbit, no American company had anynature of business. It is said, for instance, that the only
interest in rocketry.stake-holders a company is responsible to are its
Again during World-war II, American industrial mightshareholders, even though companies often appear to
could not build small arms, tanks, or airplanes thatbe operated for the benefit of their officers. Yet a
matched the quality of those built by the Germans andbusiness is a social entity, created in accordance with
those 'backward' Russians. American M4 Shermanthe laws of the society it exists in, and as such, has
tanks were no match for the German VI Tiger orthe same social responsibilities that all citizens have. To
even the Russian T-series tanks. And it was only afterhold otherwise can have disastrous national
Americans got to reverse engineer captured Germanconsequences, for if a company's only responsibility is
jet fighters after the war ended that we learned howto make money for its stockholders, even profitable,
to build jet airplanes.treasonous acts would be permissible. If China or
The American steel industry collapsed in the face ofRussia or any other nation is willing to pay enormously
imports of steel from Japan, whose steelmakers werehigh amounts for military secrets, how can a company
using newer technology which was available to butbe prohibited from selling them if the company's only
never utilized by American steelmakers. Americanresponsibility is to its shareholders who would be made
healthcare suffers when compared to the healthcarewealthy by the sale?
people in other industrial countries receive, somethingThe absurd idea that businesses exist only to make
so well known that no further comment is required.money for their owners is why Americans do not
So why do Americans experience lower qualityenjoy the quality of products and services that are
products and services than the citizens of otheravailable to citizens of other industrialized nations.
industrial countries? The only possible reason is thatImplementing newer technology costs money, which at
American companies do not want to provide them.least temporarily reduces the return to owners.
Those running our railroads don't want to build and runAmerica will not be a nation that operates on the
high-speed trains, and American telephone and cablecutting edge until everyone realizes that companies,
isps don't want to provide Americans with 100Mbjust as individual citizens, have responsibilities not only
service. The American steel industry did not want toto their shareholders, but to their employees, their
invest in newer technology; it chose, instead, to go outsuppliers, their customers, to society in general, and to
of business. And the American automotive industrythe nation which enables them to operate. Nations that
seems to be headed to extinction too. Americans likefail to enforce these responsibilities are doomed to
to think of America as the great arena of competition,mediocrity if not complete failure.