Franchising, Industrial Base, Service Industry and Thoughts

Many folks are concerned that we are losing our economic and industrial base in the United States and one only has to tune into Lou Dobbs once a week to consider the implications and unfortunate trends. Not long ago someone emailed our Online Think Tank on a Topic concerning the Franchising Industry and our Industrial Manufacturing Base in the United States and asked a dubious question indeed:

I am worried. We have no sustaining industrial base in this country.

My reply to this astute observation and common comment was: Yes, I am concerned, we have over regulated our manufacturing right out of the country, starting with raw materials on up to completed products. What does this nation make? Hamburgers and Pizzas, so I would hate for over regulation to kill those industries too; wouldn’t you – thank god we still have those. On this franchising topic we must consider the value of the Franchising Sector in job creation and circulating money and keeping the flow in our own nation. The individual then asked:

Can we survive as a service economy through franchising?

Probably not entirely, some discuss a knowledge based economy, but that is somewhat a misnomer, because the same nations which have taken our manufacturing are stealing and ripping us off blind on our intellectual capital, innovations and inventions.

Franchising is viable, but not if we force the business models of all types of industries into a single box of regulation, I hold with Greenspan’s comments when he stated: “the problem with making a new regulation, is that the temptation to create follow-up regulations is just too great” and that creates job security in bureaucracy. Nothing should be less secure than a job in the Blob in my humble opinion. Still the questions kept coming:

Where will Americans work?

Our current dilemma is self-induced, and is the result of the law of unintended consequences of making humans weak, fat, dumb and happy. With unemployment so low everyone who really wants a job can have one. We need more robots right now, but when along comes a downturn, we will certainly wish we had not killed the Golden Goose that has made us so prosperous.

Will we lose more and more of our middle class who will fall into the ranks of the poor?

There are issues to keep track of and it is a serious business of course. If we are to equalize the whole world, then Americans will come down as everyone else comes up, but we can if the middle class is lost and China falters, who holds up the game? The answer is to bring up the rest of the world without destroying all we are and all we have built in this greatest nation ever created in the history of humankind.

Will the World continue to invest in our stock market and our government bonds?

Well, if you look at the Chinese market correction, ouch. Our markets are stable today, but we need a market correction too, which is overdue and perhaps needs to be hovering around 12,800 on the Dow. Indeed, we also have a baby boomer demographic change to deal with, meanwhile China’s industrial revolution and labor issues cometh, along with angered populous over everything from wages to environmental poisoning from pollution. Lots to think about, but what is a Think Tank for anyway?