UW Barter News Sept 1992 Page 6

"Unlimited Wealth," by Paul Zane Pilzer with introduction by Bob Meyer, Barter News, Sept 1992.

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About the Author
Pilzer is a Paradigm-Buster
Education Must Never Stop

More on
Unlimited Wealth

Explains how we live in a world of unlimited physical resources because of rapidly advancing technology.

"Unlimited Wealth: Paul Pilzer Tells Where to Find the New Prosperity," by Duncan Maxwell Anderson, Success Magazine, October 1993.

"The Economic Alchemist," by Paul Wirth, Lehigh Alumni Bulletin, October 1990.

"Renaissance and Real Estate," by William Summers, Financial Enterprise--The Magazine of GE Capital, Fall 1989.

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     When consumers' quantity demands those for more of what they already have (food, clothing, etc.)--are satiated, quality demands kick in. Quality demand is the desire for a new and different model of a product.
     From 1960 to 1980, the number of homes containing a television set rose from 90 to 98 percent. Then quantity demand kicked in: The number of homes containing two or more televisions rose from 11 to 60 percent. With quantity demand satisfied, consumers yearned for better TVs--those with giant screens, remote control, and stereo sound. Consumers, it seems, replace some of their quantity purchases with the improved products made possible by advancing technology.
     As long as technology continues to advance, better products will be developed every year, and the process will start all over again. By purchasing the new products technology makes available, you are, in effect, boarding an Alchemic train of virtually unlimited demand.
     In the Alchemic world of unlimited technology, there is no limit to your "real needs." While economists may argue that what is available is a function of what you want, the Alchemist recognizes that what you want is a function of what is available. New products plant new ideas in your mind, but they also provide you with choice--one of the most potent stimulants of demand.

(5) Technology determines the level of consumer demand by determining the price at which goods can be sold.

The economist will argue that, since people really don't like change, they'll only buy new products or try new ways of doing things if the cost/benefit ratio is irresistibly favorable.
The Alchemist recognizes that new products create their own need and the only constraint on demand today is price. If the price is right, you'll

suddenly find you have a need for that newfangled gadget you've heard about; at some price, you may even want more than one.
     Sure, anything will sell if it's priced cheaply enough. But will the seller make a profit in the process? The economist will answer, "not necessarily." The Alchemist, knowing that technology is the driving force of an economy, will answer yes. That's because of the power of technology to lower the expense of materials and labor that go into production of a product.
     Production costs are a relatively small component of the total cost of making finished products today. Fixed expenses are far greater; they remain the same whether you produce one item or a thousand. So, the more items you produce, the lower the cost of each unit, and the lower price you can charge. And the lower the price, the more demand there will be for your product and the greater the likelihood that you'll be able to sell the huge quantity of items you produced.
     An example demonstrates the validity of this approach. In the early 1960s, Fairchild Semiconductor tried to build demand for its 1211 transistor. To compete with RCA's nuvistor tubes, which were selling at $1.05 each, Fairchild chose a rather unconventional approach, slashing the price of its newly invented transistor from $150 per unit to $1.05 per unit at the very beginning. Fairchild was betting that the enormous cut would spur a huge demand to justify raising production levels so unit costs would fall low enough to make the effort profitable. It worked. In 1965 Fairchild commanded 90 percent of the UHF tuner market in the United States, and production levels were so high that the price dropped to fifty cents each.
     All of this is standard practice among smart manufacturers. The Japanese used it to take the VCR market away from the U.S. companies that invented the device. Though called "dumping" by some it's not
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PUBLICATIONS

		The Next Millionaires Explains how you can become of the the ten million new millionaires that will be created between 2006-2016.		The New Health Insurance Solution How to get cheaper, better health insurance from birth to old age without an employer plan.		The New Wellness Revolution How to make a fortune in the next trillion dollar industry--preventative medicine and wellness.
		New York Times Bestseller God Wants You To Be Rich Explains how our economic system is based on our biblical heritage, and you can prosper materially and spiritually.		Fountain of Wealth Award-winning 6 CD (or cassette) audio series explains the new opportunities for creating wealth in the 21st century.		Other People's Money Pilzer's first book, exposing the S&L Crisis and the history of savings in America.

Unlimited Wealth
Pilzer's seminal work explaining how we live in a world of unlimited physical resources because of rapidly advancing technology.

The Next Trillion
Why the wellness industry will exceed the $1 trillion health care (sickness) industry in the next ten years.

Real Estate Review
Collection of articles on the guidelines for success in commercial real estate investments.

The Wellness Revolution
How to make a fortune in the next trillion dollar industry-- preventative medicine and wellness.