At the end of World War I, the Allies destroyed millions of tons of German war equipment. But 20 years later, Germany had one of the world's largest and most sophisticated militaries. The catastrophic irony of Germany's military resurgence is that it occurred because of its earlier disarmament.
George Marshall, U.S. Army Chief of Staff, made a critical point about Nazi Germany's capabilities in 1939, "After World War I, practically everything was taken away from Germany. So, when Germany rearmed, it was necessary to produce a completely new set of materials for the troops. As a result, Germany had an army equipped with the most modern weapons."
Military supplies are one of the most expensive and logistically complicated things. Countries try to get as much use out of their equipment for as long as possible. However, technological improvement happens quickly. So, militaries can often be stuck with woefully outdated equipment.
In the 1930s, Germany didn't have to make that decision. If it wanted a military – and it did – it had to build everything from scratch. So, every piece of equipment it had in 1939 was based on the latest technology. That wasn't the case for the Allies. They came up with old equipment. The Allies eventually caught up, of course. But there was a hard lesson: A set of advantages comes from starting from scratch.
Anything that evolves – business strategies, markets, products, technology, etc. has to be approached with the mindset that at some point - great ideas can expire. At such times, it is best to introspect, understand the evolving landscape and move forward with renewed vigour.
Courtesy- Morgan Housel
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