Ford Pintos were a disaster. Specifically, the fuel tank was prone to explode. The bean counters… (Ironically Pinto bean counters specifically I suppose) decided that it was cheaper to pay the lawsuit costs when people burned to death than the fix the problem.
Perhaps, a lesson is to be drawn from that in today’s legal environment.
The National Weather Service is rationing its weather balloons, restricting ability to collected date to track and predict inclement weather. The USDA will no longer be grading milk under the same terms and conditions as we have come to expect. Port inspections are reduced, increasing the risk of foreign invasive species entering the US. Three-year contracts with the federal government are being voided 100 days into their implementation. USDA loans over $500,000 to an individual or any amount to an entity need DOGE approval.
20 years ago, American’s bought their way out of anything. Need something, Amazon, Target, Temu, or a regional supermarket was sure to have it. Item shortages were limited to Tickle me Elmos, cabbage patch kids and other Christmas crazes. COVID gave a different view of supply chains and the click it and buy it for sure mentality was tested, sometimes the Charmin had to be subbed out with Quilted Northern, but we prevailed. It would appear we are moving towards less of an on-demand economy and more of demand it while you can economy.
20 years ago, farmers didn’t generate 50,000 data points of information every day, giving most of those data points away to product suppliers who are using them to “right price” the very product the farm operators are using to generate the data. Yet, the majority of farm operations continue to hand that data over to every provider without blinking and thinking about who owns that data when the operation needs it.
20 Years ago, the graft in the federal government wasn’t so obvious. Now its abundantly clear that corporations can buy their way out of trouble with campaign donations made to the right power holders. While this is probably always been true, its clearly out in the open now. Buy the right bit coin make the right contribution, have your regulatory fine reduced or case dismissed.
No doubt, this is change. Have your estate and operations plans changed with it? Are you still banking on social security, 8% return with no volatility in the market, low capital gains and virtually no estate tax? What interest rate should be considered for operating lines. How easy will it be to replace or repair primary equipment when it begins to show its age? It’s your cash flow depending on a bank’s renewal in three years when you have 17 more years of payments to make.
Do you make radical changes and adjustments, or do you apply the Pinto Principle?
Is it easier to just do the cheap thing and build a cash reserve to pay if caught on the wrong side of the bet? How big is that cash reserve? If you are betting your beans, you best get counting.
