It is impossible to receive the sun's reassuring warmth through thick clouds. But the human capacity to reason gives us the power and privilege to remind ourselves that the sun is still there.
Here is some simple reasoning to help see clear on this cloudy day. This is not economic Armageddon. This period can be simply explained as supply and demand exerting their leveling force in many markets that, for a time, were way out of balance.
- We had more capacity for lending than borrowers with the ability to return loans. Now we have fewer banks.
- We built too many houses. Now we have lower prices.
- We took on too much debt. We'll have to curb spending to pay it back.
- We had more production capacity than customers for cars. Soon we'll have less.
These are the ugly realities of 2008. Our ability to emerge from this dark period depends squarely on two truths:
- Only people can change things. Progress is rooted in applied human ingenuity or human energy.
- Growth happens when assets - technological, financial, fixed and especially human - are moved from low to higher valued uses.
Companies that emerge stronger will be those that use this time to rethink and renew processes, reconnect with their customers, reach new markets, redesign their products and services and most importantly, renew their commitment to their best people through education and training.
People who emerge stronger will be those who use this time to rethink what is important, rebuild valuable relationships, take stock of their own skills and capabilities, build new skills and get new training, share their ideas to help solve problems.
While it may feel as if these clouds will never pass, the sun will return, and it will rise in the same place on the horizon as it always does. Likewise, economic strength will return, and it will rise from the same place as it always does: from people and their ideas, put into practice to the benefit of other people.
- Nicholas Hayes
Posts
