Has The Economic Alarm Hit You Yet?

by Jay Deragon on 09/26/2008

While the politicians fight over terms and condition of the proposed bailout plan the alarm really hasn’t gone off in the minds of consumers. When you put things into perspective regardless of what the proposed economic bailout looks like it is merely a band aid on a broken damn of economic chaos instability.

The media sentiment focuses on the probabilities which are devastating economic disruption globally. The politicians are using the media to jockey for position as to which party has the right plan. At the same time the politicians continue to add earmark spending initiatives to existing legislation as well as the proposed recovery plan.

This morning announcement of the failure of Washington Mutual is yet one more example of major financial institutions having hit the iceberg of reality and whose “passengers” had no idea that the waters were filled with danger. Most Americans have yet to comprehend the economic crisis we are all in even after the proposed bailout solution passes.

When credit dries up businesses can’t maintain never mind grow. When the train of business suddenly stops consumers get crushed by the momentum of the economic forces coming to a standstill.

Get Ready for Economic Re-Engineering

Everything is about to change and most people are not prepared or aware of the significance of change coming down the tracks. Businesses will be forced to figure out how to produce revenue without having extended credit to chase revenue. Consumers will have to learn how to live on less and yet get more done with little.

Given the crisis state of our economic system rather than fixing a broken system maybe it is time to replace it with innovation, creativity and knowledge. If we accept the current system, which s broke, we will not focus on improving it rather patching it with bad aids that won’t hold.

Whenever humans are faced with enormous challenges, especially those with such global and personal impact, innovation thrives as the means to creating solutions to what initially is perceived as overwhelming problems.

Social Media will play a role in the creation and implementation of solutions aimed at creating more with less. Solutions that are driven by relationships, people and knowledge rather than institutions and businesses that seek to protect that which they thought worked in the old economy.

The current economic challenges are only fueling the need to create anew. The government, politicians, media and those caught up in the blame game or seeking old methods to new problems. Real change has yet to happen however the wave of change will only swell and eventually wash away the old and bring in the new.

It appears as though it is time to let go of the past and embrace a new future created by “we the people” and founded on united relations aimed at a new means to future economic innovation.

Let’s not be alarmed rather motivated to be creative, to learn how to create more with less and think outside the old box which has created the current situation. One thing is certain, things will change and unless we participate in the change then were stuck with the change created by others. I don’t know about you but I don’t like anything currently coming out of Washington and don’t want to be stuck with old solutions that don’t work.

What say you?

{ 2 comments }

Harold Cabezas September 26, 2008 at 4:44 pm

Jay:

Thanks, like Dan said-‘Spot on.’ Dan is also correct on all counts, especially his last statement/question in regards to being ready. We must communicate far and wide….I like, you, saw this coming for years. I tried to tell people, even family members, and, at times, they would roll their eyes.

Now is the moment. Within a 72 hour period we are seeing a main bank seized (WaMu) and another one fighting for its life (Wachovia)-not too mention all the activity that has occurred since the weekend of 9/13-14/2008. These are tangible things-institutions, organizations, bricks-and-mortar buildings-that people never thought they would see fall, even less so in such a quick and abrupt fashion. People now FINALLY realize that the previous way of business will not work.

Innovation and change will only occur if enough people work towards it. It is up to us to push these possibilities now more than ever.

I look forward, now more than before, to read your future posts and will be doing my part to innovate and spread the word of the opportunities that are before us, if we work towards them TOGETHER.

Have a beautiful weekend.

Dan September 26, 2008 at 2:28 pm

Jay – again, Spot on.

The Innovation Economy is so important because money is currently backed by debt – which is simply a promissory note against future productivity!! Any idiot will tell you that the only sustainable way to increase human productivity is to innovate.

Money is backed by future productivity and future productivity is backed by present innovation. I simply can’t imagine a more obvious link between what has happened, what is happening, and what needs to happen.

The critical and unique advantage of American Culture is our social networks. I am certain that a few simple web applications can make human knowledge tangible as a financial instrument. Who ever develops these applications will generate incomprehensible wealth in society.

America needs to develop such tools and our brilliant entrepreneurs will do the rest. The question is whether we are ready, politically, to let the people have control over the priorities of what gets innovated and what does not.

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