Some Thoughts on the Economy


The economy is in trouble – or at least it seems to be. This is hardly a shocking statement for anyone who has not been under a rock for the last year. I sit and I wonder (as I am sure many people do) just how we ended up where we are. I am not an economist or politician or any of the people who are presumed to have an understanding of the dynamics of national and global economies. I am just a poor dumb physicist/mathematician/software developer/business person, making a few observations.

1) Is the state of our economy driven largely by media? I have noticed during my lifetime that at all times, there are certain people in the press, on TV, publishing books, etc. with “end of the world” stories about the coming economic crises. It seems to me that at certain points, mass media starts giving these doomsayers much more attention than they deserve, and further that a year or so after that happens, our economy tanks. I wonder at times if it is not at least partially a self-fulfilling prophecy – if the mass media tells us for long enough that things are bad, then our resultant behaviours cause things to get bad.

It is kind of like a (not serious) theory I have about airplanes. What if heavier-than-air flight is really impossible? Maybe airplanes really only work because the people on board believe that they work? At any given time, there will be some people who do not believe, but as long as enough believe, the everything is great. But what happens when suddenly a critical number of people on the plane start thinking “Hey, this can’t work”? Poof, the plane crashes.

Maybe the economy is something like that.

2) Big banks, Wall Street, rich people, major corporations. Everybody’s favourite targets. Have they done a lot to contribute to the current problems? Of course. Are they and they alone to blame? Hardly. Our economy got where it is because pretty much everyone involved drove it here. The real estate industry predicated on constantly rising home prices. The mortgage bankers finding new and creative ways to allow people to afford the ridiculously expensive houses they really could not afford. Consumers expecting that they should be able to afford these houses. Consumers digging themselves huge debt loads buying things they could not afford. You. Me. Everybody. We are in this mess because we all created it. Maybe to greater or lesser extents, but we all played along (except maybe for the segment of the population who never had the opportunity to play, because they have been in an economic crisis the whole time.)

People are talking a lot about this psychology of entitlement, mostly referring to executives at banks and on Wall Street. I think the problem goes much deeper than that. Our whole society has a feeling of entitlement. We work hard, so we deserve that bigger house, that newer car, that big vacation – who cares if the numbers don’t work out, we deserve it, dammit. It is the whole “American Dream” (or in my case, “Canadian Dream”) concept. It is just that, however. Just because you have worked hard and you deserve it, does not mean it will happen.

3) Values. Not religious or moral values, but the values we place on things. Who are the highest paid people in our society? Corporate wheelers and dealers. Professional athletes. Movie stars. TV stars. Musicians – at least the popular ones. I know and understand the economics of why these individuals are paid such ridiculously huge amounts of money relative to their contribution to society. I understand that what they get paid is an investment by someone, and they get huge amounts because those paying them expect to get much, much greater amounts in return for their investment. The athlete gets huge sums of money because he/she puts butts in seats at stadiums, and sells merchandise.

The problem is with the people who buy into this crap. The people who pay silly amounts just to see a sports game, or a movie, or a concert. The societal value system that says these people are worth paying to see.

It is also silly that in our society, these people are valued at such a level, when the people who really have the power to solve the worlds problems – researchers in science and engineering and medicine and throughout our universities have to fight tooth and nail to get enough money just to keep the research going. Not to mention the value we place on our educators and the infrastructure around them. Education and fundamental research should be getting the big pay checks, not people playing games, playing make-believe on a movie screen, or pumping out music.

This inversion of value is endemic in our society, and we will not truly break out of the current cycle of economic crises until our values change. Period.

Just my thoughts – but they are, of course, correct. 🙂

Advertisements
About

I have been working in the world of technology for 25-odd years. I am an entrepreneur and consultant, focused on software solutions, social networking, and innovation processes. Currently, I am a Principal Consultant with T4G Limited, specializing in Portal Technologies (including SharePoint), software/systems development, service oriented architectures, and many other things which I will probably not remember until I need to use them. Prior to that, I was VP of Technology at Whitehill Technologies, Inc., where I spent almost 9 years helping to grow the company from a start-up to one of the most successful private software companies in Canada. Prior to that I worked on internet conferencing using early VoIP, and on large military communications projects. Before even that, I worked in satellite control, and remote sensing. Going way back to university, my focus was on theoretical physics and astrophysics. Currently my interests revolve around most aspects of software development, from technologies to management, and in the area of defining sustainable, repeatable processes for innovation within technology organizations. I also have a particular interest in Tablet PC technologies – I have been using one for several years, and I love it. On the personal side, I still have a strong interest in all aspects of science, especially physical sciences, as well as philosophy and comparative religion. In addition, I am into music, playing guitar (badly, I am sorry to say), and reading almost anything I can lay my hands on. I am also a member of the IEEE/IEEE Computer Society, and of the Association for Computing Machinery.

Tagged with: , , , , , ,
Posted in economy, Rant, Society, Trends

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Obligatory Disclaimer
Please keep in mind that any opinions, points-of-view, comments, or other content which I post to this site are mine and mine alone. They in no way reflect the views of my employer, my country, my dog, my cat, or anyone else you can think of. To paraphrase Monty Python, "That is the theory that I have and which is mine, and what it is, too."

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 623 other followers

%d bloggers like this: