Our country has been shaped through strong capitalist leaders such as the Cornelius Vanderbilt, Henry Ford, John D. Rockefeller and Andrew Carnegie. Our quality of life has grown exponentially over the last two centuries and growth within the economy has enabled that to take place and because of that, we've been taught that economic growth = good.
Towards the end of my undergraduate years, where I got the bulk knowledge of economics, our economy was growing fast. I had just taken my first big job and was excited for the possibilities the future would hold. Many of my friends were buying $350,000+ homes in anticipation of continuing to “make it big.” Our emotions tied us to building our futures on the assumption that there was no end to this bright side. We were too young to remember the prior recessions that our parents were more than willing to quickly forget. Then in early 2007, a different reality started to hit…
Right now I can’t think of one person I've come across who hasn't been affected negatively by the current recession. It’s hard to think about the “good economic times” when you see an abundance of unemployment, foreclosures, closing businesses and increasing debt all around you. Since people are emotional beings we can often feel a form of resentment when we think about the exponential growth that got us here. How could <insert name, company, government entity here> have allowed these events to unfold? How could we have been so blind to not have seen these bursting bubbles? How? Why?
As a banker, I've seen my fair share of despicable behavior over the few years. I’ve worked on several projects involving failed banks and the things I’ve seen and heard have struck me to my core. Don’t get me wrong, there are definitely more good guys out there than bad guys; but again, our emotions come into play and make it easy to forget there is good out there! (If you think the concept of a good banker is an oxymoron, let’s talk!)
This recession has been rough but there’s still an upside to a growing economy. Economic growth provides a strong base for research and development. Without research and development, we wouldn't have things such as new medications and breakthroughs in technology. Economic growth can also provide for higher employment and can entice employers to pay greater wages and/or pay for benefits such as 401k contribution matching or disability insurance. This growth also allows for opportunities and confidence for new players to enter the market. Take for instance Piper, the one-eyed painting bulldog. Piper has her own business selling custom artwork. Piper is capitalizing off of her cuteness and talents. She has found a niche in the market. The income she's producing is perhaps paying for her vet bills, food, and toys. It also may be paying back the initial capital supplied by her human parents and therefore allowing them to invest in other arenas (perhaps a new home for the cat? ha). Economic prosperity (as well an economic downturn) is an interconnected cycle that acts like a tornado in swooping up many of us along its way.
So what does this all mean? If I were to write this blog in another week, I’d most likely have a completely different story to write up. As I continue to process and reflect (I’m a “go, go, go” type of person and because of that, I don’t stop and reflect as much as I should) my thoughts and patterns are ever changing. I will say for sure that I do believe a new wave of economic thought is forming. Maybe it’s more apparent to me because of the core values my generation owns but I don’t think that’s all of it. I believe we are entering a “new” normal. The many assumptions held in economic models is mind boggling enough to make one feel like they are reading an ancient Latin text on Mars. With the internet and concept of instant knowledge at our finger tips, our world is forever changed. Knowledge is power and it’s that knowledge that gives us the ability to affect change. Let's go out there and make history C12s!
-Emily
www.facebook.com/emywoo
http://www.linkedin.com/pub/emily-olson/21/292/b49
Right now I can’t think of one person I've come across who hasn't been affected negatively by the current recession. It’s hard to think about the “good economic times” when you see an abundance of unemployment, foreclosures, closing businesses and increasing debt all around you. Since people are emotional beings we can often feel a form of resentment when we think about the exponential growth that got us here. How could <insert name, company, government entity here> have allowed these events to unfold? How could we have been so blind to not have seen these bursting bubbles? How? Why?
As a banker, I've seen my fair share of despicable behavior over the few years. I’ve worked on several projects involving failed banks and the things I’ve seen and heard have struck me to my core. Don’t get me wrong, there are definitely more good guys out there than bad guys; but again, our emotions come into play and make it easy to forget there is good out there! (If you think the concept of a good banker is an oxymoron, let’s talk!)
This recession has been rough but there’s still an upside to a growing economy. Economic growth provides a strong base for research and development. Without research and development, we wouldn't have things such as new medications and breakthroughs in technology. Economic growth can also provide for higher employment and can entice employers to pay greater wages and/or pay for benefits such as 401k contribution matching or disability insurance. This growth also allows for opportunities and confidence for new players to enter the market. Take for instance Piper, the one-eyed painting bulldog. Piper has her own business selling custom artwork. Piper is capitalizing off of her cuteness and talents. She has found a niche in the market. The income she's producing is perhaps paying for her vet bills, food, and toys. It also may be paying back the initial capital supplied by her human parents and therefore allowing them to invest in other arenas (perhaps a new home for the cat? ha). Economic prosperity (as well an economic downturn) is an interconnected cycle that acts like a tornado in swooping up many of us along its way.
So what does this all mean? If I were to write this blog in another week, I’d most likely have a completely different story to write up. As I continue to process and reflect (I’m a “go, go, go” type of person and because of that, I don’t stop and reflect as much as I should) my thoughts and patterns are ever changing. I will say for sure that I do believe a new wave of economic thought is forming. Maybe it’s more apparent to me because of the core values my generation owns but I don’t think that’s all of it. I believe we are entering a “new” normal. The many assumptions held in economic models is mind boggling enough to make one feel like they are reading an ancient Latin text on Mars. With the internet and concept of instant knowledge at our finger tips, our world is forever changed. Knowledge is power and it’s that knowledge that gives us the ability to affect change. Let's go out there and make history C12s!
-Emily
www.facebook.com/emywoo
http://www.linkedin.com/pub/emily-olson/21/292/b49
Emily,
ReplyDeleteThank you for bringing in your banker's perspective -- please continue to do so!
You have a nice light touch about the business world you are living in every day: on the one hand you clearly acknowledge its flaws; on the other hand, you offer an important alternative viewpoint to the critique that we so easily fall into. Your arguments on the value of growth were definitely appreciated.
That is not to say that I personally come out on the side of growth or the current economic paradigm -- it's simply to say that I want us to understand that the dominant paradigm that we so easily condemn came into existence for particular historical reasons, and persists because it does some good things, as well as some bad things.
And, of course, I LOVE bulldog everything...
It really is interesting to see how disconnected we can become from what is going on around us and what directly effects us personally, and how difficult it is for people to make a change in their behaviors if the impact is hidden from view. What is scary now is seeing the economy begin to recover and people falling back into all the same behaviors that got us into trouble in the first place. What can we do as individuals to make a larger impact and be proactive?
ReplyDeleteKind of makes me want to be a painting bull dog sometimes to avoid it all. You know I love Piper!