This post’s about me reflecting on issues affecting everyone. I thought I’d share my musings here, please feel free to participate.
The music business is under siege. So are print publications, the auto industry and some more that you can think to add.
We’re in a recession and many industries are in trouble, but are we taking the right steps to remedy the situation?
Take these examples:
The financial institutions run into some liquidity trouble.
We respond by printing more money and pinning the resulting debt on future generations, all in the hope that these institutions can be restored to their former glory.
The music industry and all others who depend on copyright protection for their livelihoods chase illegal downloaders with infringement lawsuits.
The auto industry hits a wall. Asks for government handouts…
(Michael Jackson. Bless his soul)
Think about it. What message is this activity sending out? That we’re unable to creatively think ourselves out of this mess? That we are in so much denial about our old ways we’re out of ideas?
When something dies, something new always comes in its place. Sometimes in unexpected forms. Think about the typewriter, the floppy disc, and the steam engine. The law was not able to ensure their survival when new technologies swept in. Snail mail, fax, and Robert Mugabe were at least lucky to be spared by legal decrees.
As for the other technologies, I’m certain there were businesses and industries built solely around them. The owners of typewriter and typewriter parts businesses could not have been happy to see computers taking away their bread and butter.
They must have been in two minds:
Some put up a huge fight, Some joined the computer revolution
Naturally, those that clung on to the traditional typewriter business all went under and that’s nothing to be ashamed of. It doesn’t mean they were stupid.
It’s hard to let go of your usual ways of making money, be it in a particular type of business, with a salary, through welfare or illicit trade (ok, these last ones are stupid. Sorry bra-Biza).
When the winds of change blow in, you’ll be the last to embrace them because the going’s so good with your usual money making ways. Until you wake up one day without a business, job, or your freedom, that is.
The last one to know that an industry is dead is usually the one in it
No matter how good your setup is, then, change will come about and disrupt it. How you react to that change will determine your survival. Sometimes adapting to that change is more expensive than dropping everything and starting from scratch. Sometimes it makes sense to continue with what you’re doing because demand for it isn’t about to vanish.
Back to today’s endangered business model. Is pouring so much taxpayer money and arcane laws into them really the best way to handle the crisis?
I may become unpopular for saying this but we haven’t seen the bottom of this economic cycle yet. No mater what the broadcasts say. It’s the job the authorities to pacify the masses.
So, are we just rescuing typewriters and ignoring new opportunities we’re not familiar with?
One Response for "Pondering Our Response To The Recession"
You are not wrong when you say “I may become unpopular for saying this but we haven’t seen the bottom of this economic cycle yet “.
The market has not corrected yet and while we have more positivity going on here compared to the rest of the world (2010, etc) the fact is we are in a massive global depression and these things don’t sort themselves out quickly.
The best thing you can do is use a budget planner and don’t over extend yourself, sit tight and wait it out.
The market will turn again, and there will be some ways of doing business that are left behind, so now is actually a really good time to re-skill or get into a new business so that when the market does turn in the next few years you will be positioned to work with the upswing.
Cheers for the post.
July 3rd, 2009 at 3:01 pmLeave a reply