Over the last 150 years, large stretches of salmon habitat have been eliminated by human activity: mining, livestock grazing, timber harvesting, and agriculture as well as recreational and urban development. The numerical effect is obvious: there are fewer salmon in degraded regions than in pristine ones; however, habitat loss also has the potential to reduce genetic diversity. This is most evident in cases where it results in the extinction of entire salmon populations. Indeed, most analysts believe that some kind of environmental degradation underlies the demise of many extinct salmon populations. Although some rivers have been recolonized, the unique genes of the original populations have been lost.

    Large-scale disturbances in one locale also have the potential to alter the genetic structure of populations in neighboring areas, even if those areas have pristine habitats. Why? Although the homing instinct of salmon to their natal stream is strong, a fraction of the fish returning from the sea(rarely more than 15 percent) stray and spawn in nearby streams. Low levels of straying are crucial, since the process provides a source of novel genes and a mechanism by which a location can be repopulated should the fish there disappear. Yet high rates of straying can be problematic because misdirected fish may interbreed with the existing stock to such a degree that any local adaptations that are present become diluted. Straying rates remain relatively low when environmental conditions are stable, but can increase dramatically when streams suffer severe disturbance. The 1980 volcanic eruption of Mount Saint Helens, for example, sent mud and debris into several tributaries of the Columbia River. For the next couple of years, steelhead trout (a species included among the salmonids) returning from the sea to spawn were forced to find alternative streams. As a consequence, their rates of straying, initially 16 percent, rose to more than 40 percent overall.

    Although no one has quantified changes in the rate of straying as a result of the disturbances caused by humans, there is no reason to suspect that the effect would be qualitatively different than what was seen in the aftermath of the Mount Saint Helens eruption. Such a dramatic increase in straying from damaged areas to more pristine streams results in substantial gene flow, which can in turn lower the overall fitness of subsequent generations.

    Citing the fact that the real gross domestic product (GDP) per capita was higher in 1997 than ever before, some journalists have argued that the United States economy performed ideally in 1997. However, the real GDP is almost always higher than ever before; it falls only during recessions. One point these journalists overlooked is that in 1997, as in the twenty-four years immediately preceding it, the real GDP per capita grew nearly one-half percent a year more slowly than it had on aver-age between 1873 and 1973. Were the 1997 economy as robust as claimed, the growth rate of real GDP per capita in 1997 would have surpassed the average growth rate of real GDP percapita between 1873 and 1973 because over fifty percent of the population worked for wages in 1997 whereas only forty percent worked for wages between 1873 and 1973. If the growth rate of labor productivity (output perhour of goods and services) in 1997 had equaled its average growth rate between 1873 and 1973 of more than two percent, then, given the proportionately larger workforce that existed in 1997, real GDP per capita in 1997 would have been higher than it actually was, since output is a major factor in GDP. However, because labor productivity grew by only one percent in 1997, real GDP per capita grew more slowly in 1997 than it had on average between 1873 and 1973.

    In corporate purchasing, competitive scrutiny is typically limited to suppliers of items that are directly related to end products. With "indirect" purchases (such as computers, advertising, and legal services), which are not directly related to production, corporations often favor "supplier partnerships" (arrangements in which the purchaser forgoes the right to pursue alternative suppliers), which can inappropriately shelter suppliers from rigorous competitive scrutiny that might afford the purchaser economic leverage. There are two independent variables-availability of alternatives and ease of changing suppliers-that companies should use to evaluate the feasibility of subjecting suppliers of indirect purchases to competitive scrutiny. This can create four possible situations.

    In Type 1 situations, there are many alternatives and change is relatively easy. Open pursuit of alternatives-by frequent competitive bidding, if possible-will likely yield the best results. In Type 2 situations, where there are many alternatives but change is difficult-as for providers of employee health-care benefits-it is important to continuously test the market and use the results to secure concessions from existing suppliers. Alternatives provide a credible threat to suppliers, even if the ability to switch is constrained. In Type 3 situations, there are few alternatives, but the ability to switch without difficulty creates a threat that companies can use to negotiate concessions from existing suppliers. In Type 4 situations, where there are few alternatives and change is difficult, partnerships may be unavoidable.