Friday, January 10, 2014

Spirits Up, in Economic Down Times

(image credit)
The Economic Times offered some good news - US factor orders hit 1992 high:
US factories orders climbed in November, led by a surge in aircraft demand. And businesses stepped up spending on machinery, computers and other long-lasting goods, a sign of investment that could fuel economic growth.

The improvements could signal accelerating growth in 2014. Americans are buying more cars and homes, increasing demand for steel, furniture and other goods. That has led factories to hire more workers, generating additional economic momentum.
Four years ago, I gave a keynote presentation on keeping our spirits up in those economic down times.  I brought a rubber ball with me, and toss it up in the air to demonstrate how things that go up must, and do, come down.  Then, I bounced it off the floor to demonstrate, in turn, how things that go down must, and do, come up.

Analysts offered pat perspectives on the new normal in the economy.  Its devastating nature suggested to them, at least, that the economy will never ever be the same.  They may or may be not right.

To me, what they say is not very important, because the economy seems to work off cycles.  Its elements are so intricately woven together that civilized societies around the world will at some point need goods and supplies.  Why?  Because things wear down and things run out.  Demand and purchases, then, stimulate manufacturing activity, and such activity requires more employees.  More employment means more income for people, which they use for necessary and discretionary stuff.

So to the point of the foregoing article, economic good news was bound to come, and the New Year has the privilege of welcoming it with open arms.

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