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Sunday, October 26, 2008

Is Quality the Answer when it comes to fixing the global economy?

It seems like economic growth is fueled by the belief in something good. Once the good is created, waves of false excitement that lead to false growth get created as cheaper product imitations are made that leave the consumer with the initial belief that they are getting something valuable, for a lot cheaper.

Once the consumer realizes the new cheaper thing is not as good as what it replaced, nor as useful, consumer enthusiam disappears, the value plummets, and the economy crashes.

The initial desire to save the economy is to then try and just get things going again. But if we create things just to get things going again, and the creation isn't based on quality and longevity, there will be nothing to get excited about, hence no real growth, and the economy will just stagnate.

No matter how many times we are led to believe that quality is not the issue, there comes a moment in the economic spin cycle where quality and longevity does matter.

Just recently I read an article about how Detroit had already started retooling some engine plants to make more fuel efficient engines, and now that the price of gasoline was crashing, there was some regret being expressed that maybe Detroit had over reacted to the spike in fuel prices and retooled too quickly.

It will be interesting to see if quality and longevity can make a comeback. Right now it seems the speculators only know how to make a fast buck, which means quality won't make a comeback just yet, and neither will the economy.

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