On March 25, 1911 a fire occurred in the garment district of New York City in the production of Shirts or Waists for women. The name of the company was Triangle Waist Company and 146 mostly young women died during the fire. There had been other fires in the garment district, but this one changed the landscape and the book Triangle – The Fire that changed America by David Von Drehle published by Grove Press, NY, 2003 tells the reason why at this particular time, change happens in New York. In many cities around the world there is a garment district which is where clothes are made for it was a job which many people have training when they are young and can relatively easy to move to wage work. In New York City by 1909 more women worked in the factories in Manhatten than all the mills and plants of Massachusetts and by far the majority them were sewing or cutting to make clothes. The mills north of Boston took the cotton from the south and made cloth, while the factories in the high rise buildings added value by making clothes which were sold across the US.

Part of the reason for the change was politics – politics is about getting votes and appealing to the mass people to vote people. In terms of immigration which countries welcome, at some point there becomes a critical mass of the immigrants where the face of the party needs to reflect their concerns, For many years, New York had an Irish appeal (look at the size of the St. Patrick’s Parade), it changed to Eastern Europe influence (many Jewish voters) and for political machines how to get them to vote either Democratic or Republican. The reason why politicians are successful besides having committed people to support them is to their ability to read the will of the people about when to change regulations and when not to change. If a change happens besides being a good thing, the forces for and against the change have to be weighed and balanced. It is more of an art than science. After the Triangle fire, the mood of the people of New York after trying to find villains was to support some sort of change so no more fires would not happen. To put in the sprinkler systems and other features would cost money (everyone wants but no one wants to pay, particularly developers after the building has been built) so there is a natural reluctance to do. The skill of the politicians is to weigh what people can and should pay for at the same time to gain votes in the next election. In the book, there is an excellent description of the political process (Chapter 8).

Linking to dividend stocks, for every industry stability can be a good thing and can be profitable, Then it seems something changes and the rules change which puts the profitability at risk. The reality is the things or issues were bubbling for a while and as investors you need to pay attention to them or they will overtake your investment. Remember the overwhelming number of politicians react to problems that have been created with little or no regulations for a period of time.

There are more questions than answers, till the next time – to raising questions.