Steve Denning at Forbes.com explains why Amazon won’t be making Kindles in the U.S. anytime soon. Nor will any other consumer hi-tech company. Conventional accounting’s constant compulsion to drive down costs has the nasty side effect of killing off the infrastructure needed to drive innovation.
In the same way that cost accounting and short-term corporate profits don’t reflect the true health of corporations, the economists’ reckoning of the impact of outsourcing production overseas misses the point. Americans are left with shipping the goods, selling the goods, marketing the goods. But the country is no longer to compete in the key task of actually making the goods.