I am experiencing déja vu lately about an earlier lesson on technology, markets and consumer behaviour rolled into one.
In tech terms Betamax wasn’t a lemon, but the consumer and retail acceptance of VHS created a dominant network effect. I realized I had superior but unsuccessful tech in my living room. It was an early lesson in how markets work.I bought a used EV five years ago for $30,000, and think its manufacturing standard is great. But while in Europe recently, I started to think I’m backing the wrong horse again.
But the next emerging barrier to market growth stands to be North America’s relationship to China, its determination to lead the world in manufacturing, and the crossroads we are at as consumers and as a continent trying to hold back the incessant tide of China’s industrial strategy. It doesn’t help that we consider each other threats.
But America has elected consecutive presidents, and will re-elect one of them this year, who have reversed policies of industrial engagement with China to protect jobs at home. It is increasingly choosing a future of happy communities with jobs over happy consumers with spending prowess. It’s also in many sectors choosing second-rate technology in its barricading of domestic industry and pouring massive taxpayer subsidies to make global competition appear real.