Last month GM got $25 Billion in financial assistance from the US Government. This month they are asking the Democrats for another $25 Billion. The rational from GM is that if the Government is willing to bail out banks and Wall Street why not help us. GM claims that if they don’t get the help they will have to lay off 100,000 jobs. The current economic bailout is now well over $1 Trillion and growing and more get in line to be salvaged from misjudgments of the past.
Obama will enter the White House with more major corporations standing in line for financial assistance. The latest employment reports shows unemployment is up highest in over 20 years. This year’s holiday shopping promises to be bleak.Obama made a lot of promises during his campaign; National Health Care, tax cuts for the middle class, investments in infrastructure and the list goes on.
The irony of all this mess is that those in power, corporate and government leaders, failed to predict the current economic crisis and yet both want to bail each other out with tax payers money. The prospects for further turbulent economic conditions for 2009 and beyond are fairly predictive to say the least. If those in power made bad judgments, poor predictions and unable to avoid their current economic conditions what says they’ve gained wisdom not to repeat the past?
Can You Predict?
The average consumer is carrying way too much debt. Job security for many business segments is well very insecure. If corporate America can get bailed out then consumers will expect the same. Most Americans have pulled in spending and are living pay check to pay check. Fear of future security is the common sentiment within the markets of people.
The problem is fewer and fewer businesses and people are able to generate enough income to pay the taxes that funds all this bailout. So short of a major innovation that lifts productivity, income generation and consumer confidence the future is predictable, it is uncertain and worrisome to most consumers.
The only alternative to avoiding depression and economic global collapse is massive deficit spending by the government. Deficit spending, or more government debt, means massive inflation and the de-value of the dollar which begets even more economic uncertainty.
Sound bleak? It does and our current conditions will require all of us to make major changes in our lifestyles, our attitudes and force us to look for innovative ways to create more value with less.
We’re approaching the dawning of a new era. Those who will prosper will win. All this social stuff fuels collaborative intelligence, innovative solutions to common problems and all developed between and amongst “we the people”. The tone and outcomes of our not so distant future is up to us and not anyone else. We can stand in line for a bailout of our own or we can take charge and create more value and improved economics beyond anything in our past but is possible in our future. It is up to us not them. Lets use our imaginations.
What say you?