__MAIN_TEXT__

Page 11

“THE OUTSTANDING QUESTION IS WHETHER GOVERNMENT AND CONSUMERS WILL CHOOSE TO CONSUME OR SAVE ONCE THE GOOD TIMES ARE HERE AGAIN. ” Jackson sought to drive out paper money

For just one example, opportunities

that it neglected to see the opportunities

with no intrinsic worth from serving from

abound in commodities that play into

of the frontier and instead chose to

as means of exchange for the purchase of

secular growth trends of urbanization

Àght unproductive rear-guard actions.

public lands by issuing an executive order

and mobility.

Rubber is one such

Likewise, investors would do well today

known as Specie Circular.

Henceforth,

opportunity. Rubber prices are up Àve-

to move beyond the subterfuge that is

only gold or silver was to be accepted as

fold in the last decade compared with

the debate over stimulus, quantitative

payment for purchases of government

an 18% rise in all other agricultural

easing, and inÁ ation protection and

owned land. The order induced a credit

raw material prices according to the

instead hone in on the most promising

contraction that threw the economy into

latest IMF economic data.

and

a depression for the next Àve years. Now,

the decline of the U.S. and Western

economy as the best defense against the

as then, the controversy circulating within

European auto markets since 2008, the

ills of the macro economy. iBR

the investment community was mainly

world auto market has been galloping

specious.

ahead as urbanization, investments in

The focus should have been

In spite of

on agitating for the growth that frontier

transportation

expansion promised.

incomes, the development of domestic auto

infrastructure,

rising

and

industries, and government deregulation

the broader U.S. body politic is again

have spurred emerging market consumer

wrestling with the dilemma of proÁigacy

uptake of cars.

or parsimony, Investors would be bettered

of cars grows rubber demand should

served looking for growth as the best way

continue to grow independent of auto

to shield themselves from a backslide to

sales growth as normal wear and tear

recession or an acceleration to inÁation.

necessitates replacement sales. In 1837

There is growth to be had if only one looks

Jacksonian America became so wrapped

in the right places.

up in its own vendettas over “bad” money

Fast

forward

to

late

2010

As the installed base

FA L L 2 0 1 0

111210 hq.indd 11

productive

areas

of

the

world

Epigram For Wall Street I‘ll tell you a plan for gaining wealth, Better than banking, trade or leases — Take a bank note and fold it up, And then you will find your money in creases! This wonderful plan, without danger or loss, Keeps your cash in your hands, where nothing can trouble it; And every time that you fold it across, ‘Tis as plain as the light of the day that you double it!

-- Edgar Allan Poe, 1845

I N T E R N AT I O N A L B U S I N E S S R E V I E W

11

11/27/2010 3:13:03 PM

Profile for Daniel Hellwig

International Business Review - Fall 2015  

Fall edition of the IBR magazine at the Wharton School.

International Business Review - Fall 2015  

Fall edition of the IBR magazine at the Wharton School.

Advertisement