Romney's Theory about Why Companies and Countries Decline

When Republican presidential candidate Gov. Mitt Romney was growing up, his father was rescuing American Motors Corporation by focusing upon a new type of car, the compact, putting the company's resources into the Rambler.  When his father became CEO, American Motors stock was selling for $5 per share.  After the success of the Rambler, it rose to $95. How did American Motors succeed when it was competing with General Motors, which had all the advantages that experience, size, and wealth confer?  In his 2010 book No Apologies, Romney writes: When I was about ten, I asked my dad how he thought the company's Rambler automobile could ever compete with General Motors; they were so far ahead that catching up appeared impossible. He said something that has since been widely attributed to him: "There is nothing as vulnerable as entrenched success." (p. 34) Romney is a student of why companies and countries go into decline.  After graduate degrees at Harvard Law...(Read Full Article)