Showing posts with label Monday's Success Story. Show all posts
Showing posts with label Monday's Success Story. Show all posts

Monday, November 26, 2007

Monday's Success Story: Honda FCX Clarity

In Summer 2008, Honda will be releasing a limited number of new cars in Southern California. What's different about that? The Honda FCX Clarity is the first commercially available automobile powered by Hydrogen Fuel Cells. The fuel cell powers it's electric motor by converting hydrogen and oxygen into electricity and emitting only water vapor as a waste product. According to Honda, "the FCX Clarity is twice as energy efficient as a hybrid-electric vehicle and three times more efficient than a conventional gasoline vehicle." And this isn't some weird experimental vehicle. It has the standard host of features, including seating for four, six airbags, anti-lock braking system (ABS), climate-controlled seats, XM Satellite Radio, etc...


Now while Honda is only introducing a limited number of these vehicles in Southern California (due to the lack of hydrogen refueling stations elsewhere), this does represent a major step forward in the evolution of the automobile and energy industries. And, why is this happening? Because the rising price of gasoline and a greater consciousness of the long term effects of fossil fuels have created a public demand for energy alternatives. And where there is demand in a free market, individuals and corporations will find a way to make products that meet those demands in order to turn a profit.

If Honda profits from this innovation (which they probably will), then more hydrogen refueling station will be constructed and other car companies will release other fuel cell cars. This will make it easier to own a fuel cell car and encourage further demand. Further invention will be encouraged by this new demand, including ways to convert old gasoline cars into hydrogen cars. Slowly, the fossil fuel economy will by replaced by a hydrogen fuel economy. There will not be a giant energy crisis, as many would have you believe. High government fuel taxes and increased federal regulation will not be necessary. As always, public demand and not government policy will be the thing that creates a new hydrogen fuel based infrastructure. At that point, we will all look back and applaud yet another capitalism success story.

Monday, November 19, 2007

Monday's Success Story: Salt Water Fuel

I know this story has already made the news rounds, but I thought the magnitude of the discovery deserved to be recorded as one of Monday's Success Stories. The YouTube link below gives the whole story behind John Kanzius's amazing discovery that salt water will burn when exposed to radio waves.



This story only illustrates how freedom and human ingenuity inevitably lead to discoveries and inventions beyond our wildest imaginations. How many years have government agencies been using taxpayer money to fund alternative fuel research while this one person, following his passion for cancer research, stumbled across a possible answer to the world's fuel problems in his basement? Not only that, but discovering a new fuel using the most abundant renewable resources on earth. Now it will only be a matter of time before corporations figure out a way to use this knowledge to create a profit off of products that use this new clean fuel. When that happens, and the fossil fuel based economy goes the way of the dinosaur, we will have the free market to thank for it. A terrific capitalism success story!

Wednesday, May 9, 2007

Monday's Success Story: Miracle Clothing

I read this story by Lee Dye at ABCNews, and I just had to share it with you.

It seems that a team at Cornell University has developed a fabric that uses nanotechnology to attack viruses and bacteria, clean smog from the air, and protect against poisonous gases. Did I also mention that it doesn't need to be cleaned? The fabric was developed by chemical engineer Juan Hinestroza, and then incorporated into the fashion line of Cornell Senior Olivia Ong entitled "glitterati." It uses particles of metal and other substances roughly 20 nanometers, or 20 billionths of a meter, to attract and trap bacteria, viruses and smog using electrostatic charges. The particles can also be tuned to specific colors, given that they are smaller than the wavelength of light (~400 nanometers). This means that with some further development, Hinestroza and Ong could get the clothes to change colors by simply changing the charge of the particles.

Apparently, the whole project started when Ong approached Hinestroza with what at the time was a "crazy idea." According to the story, Ong developed the idea from having to breathe the smog in Los Angeles for years. Both Ong and Hinestroza were both aware of nanotechnology, and began to develop the fabric for fun.

Ong showed off her clothing line at a fashion show at Cornell. Since then interest in the material has grown, including from the United States Military. Such clothing would be invaluable to soldiers who need protection against biological and chemical agents. Currently, one piece of clothing costs several thousands of dollars to develop. But, given time and refined production techniques, the cost could decrease.

This story reminds me of the 1951 movie "The Man In the White Suit" (spoiler warning). In the movie, a man produces a revolutionary fabric that never rips and never needs washing. At first, people are receptive to the idea, but soon they turn against him. They claim his invention will put laundry women, clothing manufacturers and others out of work. So instead of accepting his amazing invention, it is destroyed (end warning). Hopefully something similar will not happen here. Hopefully, people will see the amazing potential that this invention presents and will adjust their businesses accordingly.

To me, this invention is an amazing Capitalism Success Story. It also makes me proud to be a Capitalist and proud to be an American, and reaffirms my faith that we have a glorious future ahead. It all goes back to the innovation and creativity that arise when you unleash the human spirit and allow it to live and work in freedom. Here you have two people who stumble upon an interesting concept for clothes: fabric that protects against bacteria, viruses and smog. They invest their own time and money for fun, and end up developing a product that has the potential to revolutionize the fashion industry, the medical establishment, and who knows what other industries!

Monday, April 30, 2007

Monday's Success Story: Life Is Good

Some of you may have seen people wearing t-shirts or hats featuring the phrase "Life is Good." But did you know that the story of the Life Is Good company is a Capitalism Success Story?

Back in 1994, brothers Bert and John Jacobs had been selling t-shirts for five years, at street festivals and other events in the Northeast, even door to door at college dormitories in Boston. Given that they knew nothing about the business, business was not so great. They were sleeping out of their van, "lived on peanut butter an jelly," and had a bank account balance of $78.

Bert and John Jacobs selling shirts on the street in 1993.

Things changed when they paired the phrase "life is good" with their signature smiling stick figure, Jake. 48 Jake t-shirts were debuted at a street fair in Cambridge, MA. When the shirts began selling like hotcakes, the brothers new they had invented a winning clothing line. They took the clothing to area retailers, and the rest is history. Today, the Newport, RI based company has a staff of 112 and sells their optimistic clothing line by the truckload.

With a little luck, and a product that spoke to their market, the two brothers were able to become successful producers of a brand widely worn across America. It just goes to show you that determination, creativity, and consumer demand continue to fuel the rise of entrepreneurs like Bert and John Jacobs.

You can read more about the Life Is Good Company in this article by the Wall Street Journal.

Monday, April 23, 2007

Monday's Success Story: The Cure For The Common Cold

Flying back from Alaska this weekend, I was tired, run-down and burnt-out. And the result: I caught a cold. I'm sure many of you have had similar experiences. You push yourself hard, don't eat properly, and don't get enough sleep for a period of time. Then, once the adrenaline wears off, your weak immune system is unable to defend you. In a way, it's nature's way of slapping you on the wrist for ignoring your body's need for rest.

As I lay in bed gulping down cough medicine and using every last tissue in the house, I realized how fortunate I and other cold sufferers are. Look at the diversity of cold medications readily available to us over the counter: Tylenol, Advil, Robitussin, NyQuil, etc... All of them relieve pain, discomfort, and the other icky side effects of the common cold. All of these medications are a result of Capitalism. We the consumers have demanded relief from symptoms, and bright enterprising scientists have developed medications that return us to our normals selves. And, given the competition in the market, prices are affordable for the average American. The profits made off of the sale of these medicines are then used to fund further research and development. You might say that those pesky little viruses have spawned a multi-billion dollar industry.

Now, we even have drugs that shorten the length of the common cold. ColdEeze lozenges and Sambucol syrup both contain Vitamin C and Zinc, which can boost the immune system and help to make colds less severe. My cold lasted only 3 days as a result of these medications! As I now recover comfortably on my couch, I reflect on the fact that just one century ago, many people died from colds due to improper medical care. Could the cure for the common cold be far away? The demand for medicines and the resulting drive by doctors and scientists to fill that demand has indeed produced modern miracles. It is definitely a Capitalism success story to which I can personally attest!

Please NOTE: Consult with your doctor before taking any new medications.

Monday, April 2, 2007

Monday's Success Story: Toilet Paper

Two quick examples of how necessity is the mother of invention:

First, is a patent for a rotatable toilet paper holder by Curtis L. Batts of Duncanville, Texas. Yes, no longer do you have argue with your loved ones as to whether the toilet paper should hang over or under. No more frustrated fumbling as you seek to "correct" the mistakes made by your living partners. Now, toilet paper can simply be flipped around to provide the preferred method of dispensation.

Second, is a new item from Atech Flash Technology, which produces numerous iPod compatible products. It is called the iCarta Stereo Dock for iPod with Bath Tissue Holder (see picture below). The iCarta features 4 waterproof speakers (2 tweeters and 2 woofers) to "deliver exceptional clarity and high quality sound." It charges your iPod while playing music and runs on AC power.

This is what makes America and Capitalism so great. Wherever there is a need or desire, there will be someone selling a product. This creativity extends even to something as mundane as toilet paper!

Monday, March 26, 2007

Monday's Success Story: Bagels in Tokyo

This week's Capitalism Success Story is all about supply and demand, and finding an under-served market.

Miho Inagi is the owner of Maruichi Bagel, which opened in 2004 in Tokyo, Japan. Maruichi means "Number 1", or a numeral one in a circle, representing the bagels they sell.

Inagi originally worked as an office assistant for a software subsidiary of Hitachi Ltd. On a trip to New York City in December of 1998, she and some friends visited an Ess-a-Bagel shop, where Inagi ordered a plain with raisin and walnut cream cheese. It was love at first bite. "I just didn't think anything like a bagel could taste so good," Inagi said.

Inspired by her experience at Ess-a-Bagel, Inagi quit her job and talked her way into an apprenticeship at the New York shops. During the week, she took orders, cleaned tables, and swept the floor. On the weekends, she made the dough. After six months, Inagi returned to Tokyo, determined to introduce bagels to the Japanese.

Many, including Inagi's parents were skeptical. Apparently, the Japanese are not used to bread that is crunchy and hard. However, Inagi believed that authentic New York style bagels would be a hit in Tokyo. She and her parents put together an initial investment of $50,000. As a result of her hard work, and favorable reviews, Maruichi Bagels developed a reputation of authenticity, as well as a devoted following. The store makes $10,000 a month in profit, with Inagi earning as much as she did for Hitachi Ltd.

You can read more about Maruichi Bagels and Miho Inagi in the following story by the Wall Street Journal.

Monday, March 19, 2007

Monday's Success Story: Heelys Inc.

You may have been at the mall recently and seen a child walking towards you. All of a sudden, they go from a walk to a glide, as they roll on a hidden wheel within their shoes. The half sneaker/half roller skates are called Heelys, and were invented by Roger Adams. "There is a stealth nature to Heelys," says Adams, "When you see a kid wearing them, you wouldn't know there's a wheel in the sneaker until they started to roll."

Using a wheel set in the "heel" of the shoe, the wearer simply needs to shift their weight to their heels and give slight kick-off. Because the toe portion of the Heely is like a normal sneaker, wearers can also walk, run, use stairs, tip toe, etc... The wheels can be removed for extended walking sessions. Heely's also have an optional hard plastic piece on the instep that allows wearers to grind on railings, like a skateboarder. As a result, the Heely is an extremely versatile and popular shoe.

Roger Adams invented the shoe in his garage in 1998, after quitting his job as a mental health supervisor. Adams had recalled his childhood experiences at his parents' roller rink, and was inspired to find a "new way to have fun on wheels." Adams sunk all of his savings, $150,000, into the new product. He said, "I'm not a betting man, but I felt that I had a horse that was sure to win."

Today, Heelys Inc. has sold over 4.5 million pairs in 50 countries world-wide. During the first half of 2006, sales rose from $16.1 million to $44.6 million. Reader's Digest Magazine also named the Heely as the "Best of America" for 2005. The company's website proclaims "Freedom is a wheel in your sole."

Heelys are made in a variety of sizes, even for adults. I myself own a pair of Heelys. They are fun, hip, and allow for spontaneous skating action! When I lived on Cape Cod, I used them to skate to work, at the mall, or just to walk and roll around the neighborhood on a sunny afternoon.

Whether the Heely will last, or will be just another fad is a matter of speculation. But one thing is sure: The Heely is another innovative product that has changed America. A new sport of heel skating is developing, with competitions held nationwide (sponsored by Heely, Inc.). And, it is due to a man with a vision, who worked hard to develop it and took great risks to make it successful. A terrific capitalist success story!

You can read more about Roger Adams and the Heely in a Wall Street Journal story by Christopher John Farley.

Monday, March 12, 2007

Monday's Success Story: Ernest Gallo

If you watched television during the 80's (as I did), you may remember commercials for wines by Ernest and Julio Gallo, such as White Grenache. The life of Vintner Ernest Gallo, who died at age 97 on Tuesday last week in Modesto, CA, is a great success story and an example of good capitalism.

Ernest Gallo was born on March 18, 1909 near Modesto, California. Gallo's father was an immigrant from the Piedmont region of Italy. Gallo and his brother grew up on their father's vineyard, about 80 miles east of San Francisco.

After the tragic death of their parents in 1933, Ernest and Julio Gallo borrowed $5,900 and started their own winery at the end of Prohibition. The brothers used a recipe they found at the Modesto Public Library, rented a run down building, and got everyone in the family to help make their first batch. They sold it for half the price of wine at the time, 50 cents a gallon, and made $30,000 in their first year. While his brother Julio did most of the wine making, Ernest Gallo directed sales and grew the business into one of the world's largest wine companies by volume. E.&J. Gallo Winery sells an estimated 75 million cases annually in over 40 labels. Sales extend to 90 countries across the globe. They employ over 4,600 people. Due to the success of the winery, Ernest Gallo was listed by Forbes Magazine as one of America's wealthiest people, with a family worth of $1.3 billion.

According to an AP Story, fellow vintner Peter Mondavi Jr. remarked, "They started with virtually zero knowledge, they started with an idea and a drive that created the family empire that still exists and dominates today."

On his 90th birthday, Gallo told the Modesto Bee, "My brother Julio and I worked to improve the quality of wines from California and to put fine wine on American dinner tables at a price people could afford. We also worked to improve the reputation of California wines here and overseas."

It's just another amazing capitalism success story. Here, a man and his brother started a business at a time of family tragedy and economic depression. They took a risk and met the needs of an unaddressed market by producing affordable wines. As a result of their skills and business savvy, their company and family prospered. Ernest Gallo died Tuesday, surrounded by his family, a great example of the American Dream.

Photo

Monday, March 5, 2007

Monday's Success Story: Teenagers

One of the great things about capitalist system is that it is open to everyone. This week's success story gives a quick shout out to a group that benefits from Capitalism: Teenagers. Teens have the advantage of being creative and energetic, both qualities that lead to financial success. Teens also have relatively few expenses and time (outside of school) to pursue their business goals. By visiting Teen Capitalist, you can read a number of articles on enterprising young capitalists who have made millions with their own venture capital and internet-based businesses. The website also has tips for other teens who want to start their own business.

One example of a teen success story is Farrah Gray. At Age 10, Gray got together with a couple friends in the neighborhood and created a business club that raised over $12,000. Gray had raised over $1 million from private investors to start his own venture capital firm at age 12. In addition to his own investments, Gray's venture capital business helps other teenagers start their own businesses. Wendy Day, a family friend of Gray, says "Most kids his age are like, 'Let's go to the mall.' Farrah's like, 'Let's build a mall.'"

It just goes to show you that hard work, determination, and a little luck lead to financial success. And, the formula for success applies equally to both adults and teens. So, maybe your babysitting business could go global, or your lawn-mowing firm could get bought out by the Japanese. The possibilities are endless, no matter who you are.

(Picture is from the following site)

Monday, February 26, 2007

Monday's Success Story: Organic Foods

Many agricultural practices, such as the use of pesticides or genetic modification, are attempts by farmers to produce more food, quicker and cheaper. While this is admirable from a capitalistic standpoint, consumers must decide whether they agree with these practices or not. If not, then they will demand foods produced in a natural way, without any artifical interference. They will demand organic foods. The term "organic" means different things depending on the type of food. Organic produce has been grown without the use of conventional pesticides, fertilizers, sewage sludge, radiation, or chemical additives. Organic meat and dairy products have been obtained without the use of antibiotics or growth hormones. Organic foods also have not been genetically modified.

The organic movement began following studies of sustainable agriculuture, and comparisons of new argiculture techniques with traditional farming methods. The resulting studies led to the rise of community gardens, and the formation of various farming and consumer groups. As the number of "organic" food producers began to grow, consumers began to ask for standards in ogranic farming. During the 1980's, these groups lobbied for the government to regulate what foods could be called "organic." As a result, the U.S. Dept. of Agriculture (USDA) adopted many certification standards through the National Organic Program. Today, you can find Cheetos, Kellogg's cereal, and other major brands carrying "organic foods" as well as many locally produced and specialty food products.

What started as a rebellion against questionable food production methods has become a mainstream industry accounting for 1-2% of total U.S. food sales. According to a 2003 report by Jerry Dryer:

"While conventional food sales have been increasing at a snail’s pace, total organic food sales have been growing at a rate of about 20% per annum for more than a decade, according to estimates from the Organic Trade Association. Organic milk and dairy products have led the parade."

"Sales of organic milk and dairy products totaled about $600 million at retail during 2000. Sales of all organic foods during that year approached $9 billion. Organic sales should top $11 billion this year and $18 billion by 2005."

The organic movement is not without its critics. The Libertarian CATO Institute published an article in 2001 about the federal organic food standards. They decried the "new U.S.-government-sanctioned myth" that organic foods were healthier than foods grown with conventional agricultural practices. While we can agree as to whether organic food is heathier or not, I believe it is besides the point. The issue is about people buying food produced in a way consistent with their own wants and needs. The federal regulations simply help to establish standards that inform consumers.

Now while the organic movement has involved minimal regulation until now, there are lobbyist ogranizations who promote the use of government power to force people to grow, purchase, and consume organic foods. One such organization is the Organic Consumers Association (OCA) , who believe that the USDA has not done enough to regulate organic food. Check out four of their six stated goals:
"The conversion of American agriculture to at least 30% organic by the year 2015, including major reforms in agricultural subsidies and appropriations to help family farmers make the transition to organic, develop local and regional markets, and adopt renewable energy practices."

"A global moratorium on genetically engineered foods and crops."
Both of these goals would use the coercive power of the state to prevent farmers from growing what they choose to (or what they wish to sell), and force farmers to grow what other people think they should be growing.
"Fair Trade and economic justice, not so-called corporate-driven "Free Trade" as the global norm."
This goal smacks of contempt for the capitalist system and corporatations who are now helpig to advance the organic food movement and raise the public's awareness about what they are eating. Instead of praise for meeting the demand of their consumers (and the positive market externality of consumer education), they are met with scorn that they are not doing enough! Most likely, the OCA would push for federal legislation to implement this goal.
"Universal health care with an emphasis on prevention, nutrition, and wellness promotion."
This goal leads me to question the agenda and purpose of the OCA. While marginally related to food, it points out the elitist, big government ideology of the organization's leaders. I point out the dark side of the organic food movement for two reasons. First, I hope to caution you that such people are out there, and secondly, it shows how well intentioned people can be manipulated by those with socialist agendas. I urge everyone who supports the organic food movement to let the free market handle the production and sale of this commodity. It has worked up until now, and will continue to work into the future.

The organic food movement is a capitalism success story because it illustrates the power of the free market. Growing consumer demand led to the creation of new companies and responses by established corporations. Nobody used government power to force anybody into eating organic food. The role of the government was to determine what constitutes "Organic" and then ensure that those wishing to call their food "Organic" meet the necessary standards. What began as a local grassroots movement has blossomed into a multi-billion dollar industry, all due to the free market and the combined power of individual consumers like you and me.

Sunday, February 18, 2007

Monday's Success Story: Teenage Boy in New York City

Early in 2006, I took a trip to New York City with a tour group. In the group was a boy, maybe 12-14 years old. At one point halfway through the day, we were waiting to board a ferry to head downtown. I noticed that the kid was riding a scooter up and down a nearby boarding ramp. Thinking back, I couldn’t remember seeing him with the scooter earlier in the day. So, I just assumed he had brought it in his backpack.

Later in the day, we were walking back to Manhattan over the Brooklyn Bridge and I noticed that the boy did not have the scooter with him.

I asked him, “What happened to your scooter?”

“Oh, I sold it,” he responded casually.

“You sold it?” I said incredulously.

“Yeah, to a guy back there for $4”

“Are you kidding me? I mean, have you told your parents? How much did your parents pay for that scooter?”

“Oh, they didn’t buy it for me. I found it this morning in the trash.”

“So let me get this straight,” I said in disbelief, “You found the scooter in the trash this morning, rode it around New York City all day, and then sold it to some guy for $4?”

“Yeah”

I laughed and said, “If you can make it here, you can make it anywhere!”

As you can see, trade and entrepreneurialism are an undeniable part of human nature. They happen naturally as a part of our every day existence.