Do Tech Start-ups Create Wealth For America?

As part of the Joroto start-up experiment I recently met with some venture capitalists.  They had read our home page and understood that we wanted to concentrate on American businesses and creating American jobs.  They talked about a new invention they were funding, and while it would be built in China, it would offer other opportunities, like software developers and such, here in the U.S.  Considering the rate of manufacturing expansion compared to technology expansion I disagree with this notion.   The reader should consider this:  The iPod and iPad part of one of the greatest product success stories in all of history.  However, they are manufactured overseas.  A handful of Apple employees developed the product, but the manufacturing sector that benefits is not here in the country.  And the U.S. consumer is one of the major buyers of this device.  This in some respects is a great big net negative for America.

Today I came across this article from the former CEO of Intel, and he agrees with me.  This is a little absurd as Intel is a multinational company, but the article definitely has some lessons.

How to Make an American Job Before It’s Too Late: Andy Grove

Consider this story from the article and apply it to your job, your environment, your company, and others that you know.  Is it chiming for you now?

“The story comes to mind of an engineer who was to be executed by guillotine. The guillotine was stuck, and custom required that if the blade didn’t drop, the condemned man was set free. Before this could happen, the engineer pointed with excitement to a rusty pulley, and told the executioner to apply some oil there. Off went his head.”

With raging unemployment, and superfluous government spending that could increase inflation ten thousand percent, we are sitting on a nuclear bomb.  Figure out how to be successful, because no one is going to pay your supermarket bill when a lamb chop costs fifteen dollars.  Make no mistake:  Apple and other highly successful companies do not care one bit about the country that made them great.

What will drive your startup in the long run?  Profit margin?  Some semblance of doing the right things perhaps?

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