In a couple of recent blogs [Does Complexity Breed Volatility? and Perry, Obama, and Political Volatility], I postulated that citizens (and investors) tend to get overwhelmed by news of which they can no longer clearly evaluate the impacts, because the World around them has become too complex. They tend to give up on the complexity of the world surrounding them, and follow the herd. Everyone seems to follow and agree with a simple idea, moving together to one side of the boat, until some news or idea causes people to all move to the other side, creating political or market volatility. Citizens – many of them one-issue voters – no longer analyze the issues, evaluate the pros and cons, bounce it against their own value system and their experience, they go with the flow… Back at the ranch, market and political volatility create fear and uncertainty in the minds of the business community. In my business dealing mainly with the Federal Government, things look pretty uncertain right now.
My recommendation for President Obama’s job program costs nothing, creates jobs right away, is sustainable, efficient and effective, and does not involve Government fraud, waste and abuse. All the President has to do is to remind investors, company executives and entrepreneurs in his speech why better economic days are most certainly ahead of us, and why investing in our future now makes the most sense:
- The U.S. population is projected to grow to 400 million by 2050,
- The rest of the World is growing fast and incomes are rising in many emerging economies,
- We are getting older and staying productive and healthy longer,
- etc, etc, etc… 🙂
Calming our economic nerves, and reminding us that brighter days lay ahead can do this Nation a lot of good…and create jobs, rather than telling us to “go shopping” as George Bush did after 9/11. Our World is complex, and our brains, subjected to constant bad news and fear, could use a calming influence to show us the light and help us get back to work.