Life is better than death. Love; greater than either…


I am no economist but…
7 November, 2008, 2:23 pm
Filed under: RanDom, Thoughts

OK. Here are my thoughts on the current financial turmoil.

Businesses and mid-level management people everywhere push for sales and increase in sales. They have things like ‘how did we do in the same period last year’ kind of records. So from year to year, it is expected that sales will increase. Sales include clothes, medicine, groceries, food, beverages, airline tickets, whatever. Companies and CEOs want to see their business grow.

They can do this in two ways.
1) Get new customers
2) Steal customers from competitors

Step 2 is pretty straightforward. Ensure an awesome advertisement, marketing campaign and voila, the results are yours. It’s step number one that’s the problem. Say you are the only one playing in your field. When people do not have cash to spend or want to spend on other things, you are left high and dry.

But I think this is what’s happening now. Businesses everywhere push for more sales, people get more in debt. And then who gains? In the short-term, the CEOs gain. They have their fill, they leave the table. The mid-level managers run psycho and the grassroots lose their jobs.

And then the BS about the economy comes to play. Governments are run like businesses. You make your product so irresistible for investors to invest in to ensure your economy runs like a well-oiled machine on steroids. There are only so many investors and so many countries in the world. If you offer a product a dozen other countries offer, you are screwed. If you offer a product lesser in quality than other countries, you are screwed.

It’s a tough business, pun intended. For a business to survive it must offer security (which is virtually impossible to guarantee), uniqueness and a good infrastructure. It must, literally, sell itself. Especially in times like these, where EVERY single person is super cautious about spending and investing; people do their research more thoroughly.

Well, what I’m getting at is the bubble of materialism and capitalism has burst. Share prices falling, retail slowing down; it’s all in the theory of balance. We have gone over the balance of greed way too far and for way too long already. And still governments are trying their very best to tip the see-saw retrospectively. What we are looking at is just the other side of the see-saw. The worse the crisis gets, the faster we will see the light at the end of the tunnel I say.

But maybe in our lifetime… Maybe not…

God bless!

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