Thursday, December 18, 2008

Economic Perspective

OK, obviously we’re hitting some uncertain economic times. Perhaps you’re one of those who has already been affected or is waiting for the ax to fall. I don’t spend a lot of time following “the news” but I do gather and analyze information. I’ve had a thought in the back of my mind lately and I decided that it’s time to write this up. This will be a short post.

Few combinations of words strike fear into the American psyche like “Great” and “Depression” used together. We’ve all seen the imagines of bread lines and tent cities and unemployed and the Dust Bowl. I want to try to give one thing that perhaps can provide some perspective on what is going on. Remember, on the news, if it bleeds, it leads. None of the news networks could stay in business for long with reports like “3 Billion People Reported having a good day today”. It would go nowhere. I’ve heard reports that unemployment during the Great Depression was as high as 26%. That’s almost unimaginable, but let’s turn that on it’s head: employment then was 74%. There were actually jobs during the Great Depression! Look at footage of Hollywood: it was doing just fine. People were going to movies, and stars and studios were making money. The grocery cart was invented during the Great Depression. Why would a grocery cart be needed unless people were buying enough groceries to need one? Many businesses did just fine during the Great Depression, many scientific advancements were made, and many people did fairly well.

Even if we hit another “Great Depression”, that doesn’t mean that everybody will be unemployed. Many will. There are some industries that will probably take a hit. Some companies will probably fail. In order to make it through, those affected may need to adapt, to learn new skills or even change industries.

Even if we do hit tough times, there will be bright spots, and eventually, they will come to an end.

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