free invisible hit counter Economonics: US Capitalist Cycles


Wednesday, October 26, 2005

US Capitalist Cycles

To go along with my Oct 17th post I just read an article about how small businesses across the US are exploding.

I believe the small business cycle is often overlooked. While not widely reported to me it appears there have been many such times when small businesses have outpaced big business.

During these times which I think occurred around 1940s, 1980s, and now 2000s big business tends to stagnate or shrinking leading to many mergers resulting in Oligarchy structures of the old big business.

This causes a lot of shakeup among the employed workers and investors. This leads both groups to look elsewhere. For former employees, new opportunities present themselves because of new technology or productivity enhancements. Investors want higher returns and look towards these new businesses to get them.

Eventually as the end of cycle approaches the small entrepreneurships grow and combine to form new large companies, eventually to reach oligarchy status and restarting the cycle.

The result of all this is survival of the corporate fittest which is a reason why the US is so productive and rich.


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