I’m sure it was a difficult decision for the owner of that factory and I can imagine that the owner’s friends and family were very supportive. Let’s take the emotion out of the picture by looking at our own perspective. We don’t really know this guy personally. So objectively, is anyone crying over the fact that the world is no longer making typewriters?
Let’s Bring It Closer To Home
When our friends and family, or even ourselves are in a similar situation, we tend to feel empathy or even distress. How many photographers went out of business when digital cameras exploded onto the scene? How many graphic designers are being wiped out by having services outsourced to India or the Philippines?
With the advancement in technology and the Internet, products and services are becoming more and more commoditized. We can whine and moan all we want about how our jobs are being scooped up by a shrinking global village, but the question I’d ask of everyone is, what are you going to do about it? Unfortunately, no matter how important you think your products and services are, the bottom line is that no one cares. All the customer sees is the value that’s in it for them, and if they don’t see things your way, it’s your fault, your problem.
Warren Buffett’s Thoughts On This
The way I see things, if you’re on the receiving end of this commoditized world, you have a few options: Lower your prices to match your competition, persuade your audience that your products and services are worth as much as you think they are, or stay ahead of the wave and not get caught in an over-saturated industry. The great man Warren Buffett once said that the best hedge against inflation was to increase your skill level. This applies to all my examples. Increasing your skill can mean you can produce your products and services for less money and more quickly. It can mean that your marketing is top notch and always ahead of the crowd, or it might just mean you are being adaptive to an ever-changing world.
A client of mine was a computer software programmer. She had a great job in the 80s, but hasn’t been able to find a job since. The life of an employee is no different than that of an entrepreneur. Are you asking to get paid more than the employer thinks your services are worth? Are you unable to persuade your employer that your value is far beyond what they interpret? Are you unable to go back and build your skill set?
Reality Check Time
Assets all over the world are bubbling and ultimately collapsing. It’s time to truly understand what you ultimately want in life and to undersatnd what you’re willing to do to bridge that gap between what you have and what you want. Today I may sound more like a Tony Robbins-esque life coach, and you’d be correct, since there is a thin, almost permeable line between finance and your personal life. In fact I’ve had many conversations with clients where they felt that there was no hope of retirement (nothing wrong with working until 90 at all), and although it’s outside the scope of my training, I do get them to consider becoming an entrepreneur or perhaps going back to school.
What are your thoughts? Do you believe there is room in this economy for a person of your skills and talents?
Wow, I had no idea there was still a typewriter factory up until last year either.
I find it kind of sad that they’re gone, and I don’t really know why. The day some other antiquated hardware (god I wish fax machines would die) goes away, I will rejoice, and yet certain antiques like this and like records seem too special to go away completely.
On another note, I’m just curious about how the title factors into this all. You only really mentioned inflation once in the article, and it seemed kind of a side-point.
Well spotted. I could’ve worded that better. I interpret the word inflation as the fluctuation of value in one thing or another cause by progress in outside forces. So in the example I gave was showing how the progress is technology was eroding the value of typewriters until the the whole thing collapsed.
The best way to hedge inflation is in this quote from the best salesman of all time Ray Kroc:
“When you are green, you are growing. When you are ripe, you rot.” It’s the same principle in the book, “Who Moved My Cheese?”
Beautifully said
Beautiful quote indeed but it doesn’t say anything about the way to hedge inflation.
The quote basically claimed that we should continually reinvent and grow ourselves, and not let the rot sets in.
In my opinion, it reminds us to stay relevant. but staying relevant doesn’t stop inflation from overwhleming us financially.
It says everything about hedging inflation. The principal is to always be learning, looking at new things, new ways to invest or save. If you just stick with one idea and don’t grow or look for other ideas you will fail. You will not hedge against inflation, in fact you will probably be the poster boy for inflation.
The whole principle has nothing to do with money and everything about how you use what is out there for you to beat whatever you want.