THE “NEW SUSTAINABLE ECONOMY”

February 28th, 2009. Published under Uncategorized. No Comments.

Some economists say in their most optimistic view the US has only reached the halfway mark in terms of layoffs expected for this recession. A growing number of economists also say that the US economy is not just shedding jobs temporarily, but may be undergoing a painful restructuring process that will eliminate some types of jobs for good.

Professor Peter Morici, of the University of Maryland’s Robert H. Smith School of Business stated: “We are seeing very large layoffs-the kind you get when companies don’t expect to be re-employing any time soon.” “They [represent] structural, not cyclical, changes to the economy. We’re looking at a permanently smaller economy with prolonged unemployment at an unacceptable level.”

This type of workforce can’t afford to bolster the economy. The dirty little secret that no politician wants to acknowledge, and only a few economists are courageous enough to declare, is that spending will be altered, if not permanently, for a long time. We are transforming into a “new sustainable economy.” Consumers will only spend for things they need or that add value. Businesses that offer these products and services will survive and businesses that don’t will cease to exist. There is no question that it will be a smaller economy, and perhaps Americans will have a different standard of living. Whether different will be viewed as for better or for worse solely depends on our evolving values. After all, we are the nation that exported consumerism. Made entire nations feel suddenly impoverished by comparison to families on Beverly Hills 90210.

What lies ahead will be a transition to sustainability in every aspect of our work and our personal lives. We will consume only what we can currently economically support. We will only consume resources at a level that is sustainable for the planet. We will develop a sustainable emotional existence, one that is not dependent on “happiness” we can purchase or swallow. We will work in a manner where our efforts are directly focused on ways to create value in our organizations and to make sure our organizations are focused on things that add value as if our lives depended on it. And now, they do.