The following interview with David Stockman is sobering. It applies to marketing strategy. Stockman was a congressman and the former Director of the Office of Management and Budget. Read it. Think about it. Plan accordingly. The strength of your small business profits depends on how you act based on what you are about to read. Good marketing will help insulate your business from recession and beyond.
The economy is getting worse, not better. I’m an optimist grounded in realism. Real optimism is based on reality, not blind hope. Act on reality then the benefits of optimism will surface over time. It works in both marketing and life.
An excerpt of the interview below:
“I don’t think we are at the beginning of the recovery. I think we are at the end of a disastrous debt supercycle that has gone on for the last thirty or forty years, really. It started when Nixon defaulted on our obligations under Bretton Woods and closed the gold window. Incrementally, year after year since then, we have been going in a direction of extremely unsound money, of massive borrowing in both the private and the public sector. We now have an economy that is saturated with debt: $54 trillion or $53 trillion – 3.5 times the GDP – way off the charts from where it was for a hundred years prior to the beginning of this. The idea that somehow all of that debt is irrelevant, as the Keynesians would tell us, is fundamentally wrong – and the reason why the economy can’t get up off the mat.
We’re doing all the wrong things. We’re adding to the problem, not subtracting. We are not allowing the debt to be worked down and liquidated. We’re not asking people to save more and consume less, which is what we really need to do. And so therefore I think policy is just making it worse, and any day now we will have another recurrence of the kind of economic crisis we had a few years ago.”
This rest of the interview is reality. It’s not good news:
http://www.caseyresearch.com/cdd/david-stockman-austerity-not-discretionary
Plan both your marketing and financial strategy. Expand your business based on profits rather than debt. And remember, math does not lie…
Stuart Atkins
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