The "Buffalo Theory" is a concept that was made popular by John Ratzenberger's character, Cliff Clavin, on the 1982-1993 television series "Cheers".
Cliff, to his fellow drinkers at Cheers Bar, explained the theory by showing that a herd of buffalo is made stronger as the weaker members of the herd were hunted down and killed by prey. Cliff took that concept and applied it to his assertion that beer does the same with the brain: As beer kills brain cells, it kills the weaker ones first and the brain as a whole is made stronger thereby making the beer drinker seem smarter.
The Buffalo Theory may also be applied to economics. It can be boiled down in the following manner:
In a weakened economy - to which we have grown accustomed over these past few years - bad things happen to many people. One of the negative impacts is the loss of jobs and we have certainly seen this since February of 2009. Millions of Americans have lost their jobs as consumer spending has slowed, the housing market has collapsed, and gasoline prices have risen to nearly four dollars per gallon. Not only have we seen millions of our fellow citizens being fired or laid-off, but many companies have fallen by the wayside, also.
But, when you break it down, the reality is that the nation's employed workforce is actually becoming stronger. Think of it this way: When companies decide that they need to make cuts due to decreased revenues, whom do they lay off first? Certainly not their best producers. To the contrary; employers look to their less-productive and least-efficient workers - those from whom they receive the least bang for their buck. THESE are the individuals that receive pink slips first.
Likewise, in the marketplace, companies that provide their customers with less in terms of quality, service, and value are the first ones that close their doors. It seems to be human nature to lament the closing of businesses. Most folks feel a certain sadness when they see a store posting "Going Out of Business" signs. But, when looked at objectively, what is occurring is a weeding-out of the weaklings. Just like the Buffalo Theory. Think of the companies that you have seen go out of business in recent years. Can you honestly state that these companies provided superior service and value? One major national audio-video chain closed its doors several years ago. Why? Because they had competition that was doing a better job. The same can be said about several national restaurant chains to say nothing about countless local businesses. If you look around, you will find that the companies that have survived the recession have, for the most part, done at least fairly well. These are the companies that provide their customers with a high degree of quality, service, and value.
Take, for example, Ted's Montana Grill founded by billionaire Ted Turner. His restaurant chain serves quality food in a comfortable environment and provides excellent service at a reasonable price.
And the cornerstone of Ted's menu? Bison meat.
The Buffalo Theory in action.
James Sharp is a middle-aged, middle-class, middle-management salesman who believes in secure borders and fighting our enemies with a strong military. He also believes in limited government, free markets, and unlimited opportunity and personal liberties for all citizens of the U.S.
