Where will you be when the recession ends?
Posted January 14, 2009on:
Where are you going to be when the recession ends? And when will it end?
Out-and-about the parks and landscapes of the internet, three broad scenarios are being discussed:
- Nothing has changed. This is a temporary downturn. Be careful with your money. Try to avoid being laid off. We’ll be back to normal in 2010, or soon thereafter.
- The end is nigh. Capitalism is over. And if capitalism is not over, we are going to have a Depression. So go down to the video store to get out some movies on the Great Depression because that is were we are headed.
- In recent years, we have been spending beyond our means and we need to rethink the basis of our wealth and political power. Cutting back is not the issue. Re-jigging the economy is the issue so that we can emerge ‘re-conditioned’ for the next 30-40 years.
Which camp do you fall into? This is my thinking.
Rough summary of our economic position
The USA has an economy around 5 times the size of the UK’s, and and they have 5 times the population. So we differ in size but not so much in wealth.
China and India have either overtaken the UK last year, or are overtaking us this year in the size of their economy, but they have around 15-17 times our population (each), or over 3 to 4 times the US population.
The US is well ahead of everyone else by a long margin. To stay ahead, though, whether there was a financial crisis or not, they have to do something about their economy.
Obama has been spelling out the issues. The US economy is too dependent on oil. Too many people are reliant on ‘old’ industries, which can be run more efficiently in China and India who also have lower input costs. The numbers of well-educated Chinese and Indian graduates far exceeds the numbers of comparable US graduates.
The issues are not dissimilar in the UK.
My sense of what is important
I get so annoyed to see people being advised to ‘hang on to jobs’ in industries which are in their twilight years. It’s true that as parents we may feel that we have to hang on to whatever income we have, just as as immigrants, for example, run corner shops and drive taxis to give their children a good start in life. But to be too defensive, is not wise.
Since I arrived in the UK, almost one and a half years ago, I’ve been amazed that so many people want to leave. And almost all the young people do.
This is ‘discourse’ to some extent. People talk about going to New Zealand as a way of getting away from something that irritates them. They don’t mean to go, but the idea that they could, relieves them of the trouble of sorting out what bothers them.
When young people say fiercely, “I am going to get away from here”, this too is ‘discourse’, and in part, a currently fashionable way of expressing ambition and determination.
My sense of what we should be giving priority
But, what if we treated the young people of the UK differently?
What if we celebrated their achievements more? What if paid more attention to their dreams? What if we put their dreams more clearly at the top of our national agenda?
Would that be molly-coddlying them? Would that sap their ambition and drive? I don’t think so. I think that knowing we value their dreams as much as their achievements would allow them to pursue their dreams with more confidence and to waste less energy on worrying about failure.
David Whyte, British corporate poet, talks of the dreadful alienation that adolescents feel when they realise that their parents are burdened with life. If we are not living joyously in expectation of where the economy is going, how do we expect our children to?
Come with me
Which industry do you believe is fit for the teen years of this century?
What is catching your eye?
How big will this industry be?
What are its opportunities?
Why does it fascinate you?
I would like to know your dreams.
Which industries do you feel are like daffodil bulbs, and like to be planted in a good frost, so they can burst into exuberant life at the first hint of spring?
P.S. Thanks to John-Morgan for this wonderful picture of daffodils via Flickr
UPDATE: For an HR Managers perspective on the Recession, I have written a summary on a new post.