Is the Sky Falling?

This is a business blog, not a political blog.  But it's impossible to operate in a vacuum and what happens politically has an impact on our day-to-day activities, so, with your permission, here's a little pontification on the latest news.

First, after months of politicians jockeying for position, someone actually voted yesterday.  At this point I don't think it really matters who won or lost but at least the fact that some of the citizens of the great state of Iowa actually have made a choice gives us hope that the 2008 campaign may come to an end some day.  Sadly, that some day is eleven months away.

Second, and more worrisome is the fact that a Google search on "depression recession" returns 100 news articles written in the last 4 days.  Many of the articles are from foreign countries who seem to take great delight in blaming the United States for everything that they think is wrong with the world.  Of course, some of the articles actually take the positive approach that predictions of economic catastrophe are greatly exaggerated, a position your blogger agrees with completely.

Nobody asked and I'm no economist, but here's what I think. 

Many of the gloom and doom crowd have a vested interest in seeing our economy go down in flames.  As mentioned, some are anti-Americans who think that if they shout the "D" word loud enough and long enough that they can actually make it happen.  Some are speculators who hope to profit in the currency and futures markets by betting against the US economy. 

Some are just stupid and/or are trying to sell newspapers and magazines.  Face it, "US Economy Will Remain Strong" isn't the type of headline that creates a lot of excitement.  Bad news sells.

OK, what makes me, a non-economist, so sure that things are going to continue doing well?  The first reason is unabashedly patriotic.  This is America and we have the best and brightest minds in the world running the Federal Reserve and other economic drivers.  Who else is our equal? 

We're a lot smarter in 2007 than we were in 1929.  Any comparison to past economic downturns have to take our current level of knowledge and technology into account.

Today even the smallest business has access to technology that our parents didn't even dream of.  We're smarter buyers, better sellers, and more creative promoters than any generation in the past.  You can get your message out to all of your customers and prospects in a matter of minutes without buying an add or even licking a stamp.  Point-of-sale systems make it possible to target your promotions with pin-point accuracy.

Using social media you can exchange ideas with other business people halfway around the block or halfway around the world.  There are blogs and podcasts available on every conceivable topic and you can have them delivered automatically right to your desktop. 

The second reason for optimism is the same election process mentioned above.  Face it, the Democrats desperately want to take over the White House and the Republicans are just as desperate to keep it.  But both sides have a dilemma.  Each side would love to be able to blame a recession on the other.   But the Democrats control Congress while the Republicans control the White House.  Neither side can be sure that voters won't blame them for any negative news.  They both have a vested interest in keeping things positive.  They're not going to let us slide into a recession when they have so much at stake.

But don't put your faith in the politicians.  Put your faith in yourself and your people.  Even in a recession there are plenty of opportunities to make money.  You may have to work a little harder, but you can do it.

What do you think?

Comments

[Thriveal]

Mike-

I'm not scared of the so-called recession. I believe in small business! Great post on the other side of the recession scares.

I'll be highlighting your post on my blog for the Tuesday, January 8th Carnival of Small Business Issues.

Thanks, Jason M. Blumer