Taking stock is a standard device by which to judge one’s condition. There appears to be a need to take stock quickly. The clock is ticking and we have to get our act together. Debt continues to rise, employment is stagnant, and now the Atlantic Ocean, already coated with Icelandic ash, is littered with plastic garbage.
One way that we can take stock quickly is by comparing the Fortune 500 list in 1960 with the Fortune 500 list in 2009. We use this device in the spirit of the 19th century French political scientist and historian Alexis de Tocqueville who commented on America’s love of money. In 1960, the 25 top earning organizations included 16 industrial companies and no banks, investment houses, or stores. In 2009, the 25 top earning entities included eight industrial companies and nine banks and stores. The only consistency between the two periods is in our unwavering dependence on oil: with eight oil companies in 1960 and five in 2009. The reduced number of companies does not denote less dependence on petroleum; it reflects mergers and an increase in imported oil.
It is a mistake to think that we can all survive within an economy that acts like the gaming casinos of Las Vegas. That is an economy that simply moves cash back and forth — to the house’s advantage, by the way. Such activity creates no more physical wealth than state lotteries. Somewhere and somehow, someone must actually make something, or grow or feed something, or move something.
Industry, agriculture, and commerce are the lifeblood of any economy. In a word, it is not the rattle of dice but the hum of machinery that we need. It is not hedge funds, sub-prime lending, or offshore banking; rather it is the tough and demanding production of goods.