It was a bright day in Chicago, walking a block to the conference centre where we hoped to see a great speaker who was talking about the economy. Was good News or bad News on the way?
The speech related to the print industry, but the indicators involved apply to most businesses and consumers.
The presenter was the same gentleman who had predicted at a previous conference years ago, well in advance of the market collapse, that something was brewing that was not going to be good.
To make a long story short, North America is in for a long haul. Chances of a double-dip recession loom, but according to this guy, it will be similar to what we see today; growth will remain anaemic.
Typically we believe in the old joke: What is it when you lay economists end to end? A good start. But this fellow has a real knack for explaining and sifting through data to make points that make sense.
Joblessness, tight margins and difficulty borrowing money for expansions or equipment, will mean we all need to watch our finances in business. But there is more to life than just business.
For the folks without work, the chances of getting back on track are made more difficult when so many people are vying for work. As we all know, once the debt ball starts to roll, the climb out can be very harrowing.
That, of course, stands in stark contrast to certain industries or sectors of the economy that have the ability to set the bills, backed up by legislation. We’re pointing to examples like the insurance business, banking, non-profit operations bankrolled by government bodies and government itself.
Absent too often is any sense of urgency or requirement to review expenditures found in budgets to keep costs down, because the revenue stream is seemingly without fail. The success of a program or policy initiative is not typically measured by its outcome, but rather if the budget was spent.
For example, the feed-in tariff program the Liberals put in place for electricity generation gives wind-power and solar producers an incredible return on investment.
It begs a question: if green power is good, would an investor not be happy with a reasonable rate of return on the investment?
Insurance, as another example, continues to increase in cost based on senseless litigation and the premise that the buyer must by law pay for coverage.
Could that be partly why upwards of 15% of drivers in some states down south do not have insurance on their vehicles?
A perfect non-profit example of curiosity remains the employment assistance offices that seem to abound. We know people respond to advertising in their local Newspapers. Why is it necessary then to have a publicly funded job board and a coaching staff for people who are looking for jobs that aren’t there anyway?
As the economy trudges along we believe a review of doing things well and using money wisely is essential. Just because the money rolls in, doesn’t mean it should be wasted on pursuits that do not make a real difference in people’s lives.
