Friday, August 20, 2010

We Hang Every Third Salesman

We Hang Every Third Salesman
The Second One Just Left

In the sixties, a drugstore in Douglas, Wyoming had a big sign out front that said exactly this.  We all know their motivation and their real message – no salesmen.  I like how they told you exactly where you stood.

The business cycle that ended in August of 2009 was eight years long.  The previous two business cycles were each ten years in length.  All other business cycles going back to 1929 were four years in length.

The primary cause of recession is excessive inventory, not the “bad policies” of Mister Bush and Mister Obama.  With the coming of the inexpensive computer and the advancements in inventory control by WalMart, inventory control has become easier.  This has resulted in longer business cycles.  The last business cycle was cut short by a “panic”, motivated by political desires.  I will leave that alone.  It does not matter for our current discussion.

One other thing before we get to the question you want answered – “Why is a smart mouth like you so cock sure about the economy?”  The knowledge of the human race has, and continues to grow at a rapid pace.  In fact, the productivity improvements this business cycle are greater than previous cycles.

I could recap everything for, but I will assume that you do not need that.  Here is the answer:

We Hang Every Tenth Salesman.  The First One Just Left.