MInTheGap

Technically, a recession is defined by two successive quarters of negative growth.  Non-technically, a recession is a recession when the media says it is so.

“Recession” is a loaded word.  It is used to spread panic and fear, and is, to some degree, a self-fulfilling prophecy.

We are in a Recession because the media says we are.  We are in one, because we have seen some corrections and some tightening, and we think that things must be going bad.

A year or so back there was a girl at my place of work that used to work at the local news station and moved to my company to help produce training videos, etc.  She was extremely friendly and personable, and well liked.  Times got a little tough here, and that position was no longer needed.

My reaction was predictable– what’s wrong with the company?  My boss’ reaction was insightful.  Basically, this is what business does.

In times of plenty, businesses have a way of bringing in people to do things that they think they need or want, but only when times get a little lean do they realize that they do not need that thing after all, and they let it go.

This is an amazing self-regulating system.  If you’ve been around church politics or even governmental politics you’ll see that one of the problems in these systems is that it’s rare to have a program or an activity cut back when it isn’t doing what it should.  These elected bodies rarely change.

However, businesses are always changing, adapting, trying to become more efficient– or else they will fail to thrive.

Back to the “Recession”.  The media are using a word to make the economy an issue in an election year.  Watch the candidates talk about what government can do to “fix” this natural process, but don’t be fooled. 

This process is much better than the one they have in Washington.  One that tells you that you need to cut back because times are tough, but that they need more of your money.

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