I`ve been catching up on economics, going back to read about the Zero-Sum Solution and other ideas of the 80s. In the course of reading about American productivity and how it`s contracting the US economy, I got to thinking about the small business sector.
Personally, I think the international corporation and large enterprise
model is going through some revisions, and may not work the way it
always has in the past. I also agree that the middle class is getting
smaller and smaller, leading to either low income or high income
salaries and lifestyles.
In between, answering the question of where we`ll get back to
producing, we have entrepreneurs and e-commerce. These are growing
strongly, and that got me thinking back to the Great Depression. At
that time, with America emerging as almost the only very large economy,
a lot of things were "inside" the boundaries of the country.
In other words, a lot of people had no money, but a lot of others had
plenty of money. It`s always true that there`s a lot of money around,
despite economic failures, bankruptcies, and collapses. Nowadays, I
believe that money will show up in the world economy, not being limited
to a national boundary.
If all this happens, then it would clearly be to our advantage to sell
more to an international market. We have a single product, but with the
Web and computerized currency conversions, it wouldn`t be that
difficult. PayPal already handles a lot of this, almost transparently.
I also was remembering about some sort of online currency system using
gold. I can`t remember the name or the details, but it got me to
thinking about our price structure. Let`s say we sell 1 flag for $8 US,
but that the dollar begins to weaken and economy continues downward.
How many of you think it would be a good idea to tie our product price
to the price of gold? So right now, 1 flag = 1% gold ounce.
We wouldn`t list that on our sites and pricing sheets, but we would use
the formula internally, on our own. If the US economy gets a lot worse,
we would change our pricing accordingly. But if we started selling
internationally, couldn`t we set up a calculation in a shopping cart to
display the price relative to a manually entered ounce of gold?
Wouldn`t that also keep the price at an objective level across other
currencies? If the German economy, for example, was holding steady,
then their currency would remain the same in relation to an ounce of