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Competition is great for consumers, not so great for companies. Circuit City is closing. Macy’s. Gottschalks. Businesses are closing shop nationwide and on one hand, it’s frightening. On the other hand, it’s helping us all, because the businesses left are needing to overhaul their way of meeting the needs of their consumers.
We’re all spending less money, so we’re being more picky on where we are shopping. We’re looking for deals at the expense of our sanity. No longer can Circuit City skirt by with terrible customer service, irrelevant marketing, and complacent product offerings. Best Buy has beat them out time and time again, but Circuit City has managed to stay in business during a manageable financial climate, but not during a recession that requires the best from a company.
Don’t get me wrong. I am not being insensitive to the many businesses that are closing and the many people who have been laid off (or can’t find jobs). It’s just that one of the little nuggets of information I gained from my marketing classes (specifically, Consumer Behavior) is that competition in the marketplace is best for consumers. Without competition, we will suffer through inflated pricing and customer service that is mediocre. When a company feels threatened by competition, they will pull out all the stops for us, because they want our money.
This recession will weed out the businesses that haven’t been paying attention to the details of what makes an amazing company thrive. In this time, I expect superior customer service. I expect affordable pricing. I expect greatness.
I’ll give you a great example. About a month ago, I went to Wells Fargo to deposit a check and as I walked in, I was greeted by two people. They asked if I needed any assistance, how my day was going, and were so friendly I thought I was in a parallel universe. The teller used my first name and helped me so my account wouldn’t go overdrawn. All in all, the experience was unbelievable and I knew it was because of the economy. I knew that they had all sat down in a conference room and talked about how they could make the customer experience more enjoyable, unique, and appealing. Even though I’m poor, they treated me like I mattered to their company and that, in turn, matters to me.
I like that the recession is making it more difficult for companies to get our business. Pull out all the stops for me. Give me a reason to not only spend money at your business, but to be loyal to your company. Don’t shortchange me. Don’t rip me off. Don’t charge me $5.00/gallon for gas, realize I’ve stopped buying, lower the price to get my business back, THEN steadily increase the price and insult my intelligence by assuming I wouldn’t notice this sneaky plan.
Impress me, companies. Be remarkable. Go the extra mile, because otherwise you’ll go under like Mr. Circuit City over there.
As much as a hit this recession is for many people, I think the real 'benefit' is the brakes it is applying on our consumer driven economy. I think it's a time to reflect and reassess our priorities in life beyond the latest tech gadget or whatever. Here's an example I recently heard in the news. The grocery store business is not suffering in our current recession thanks to the fact families are eating out less by economic necessity. I think they're probably eating more healthy and spending more time together as a result. That's one reason I think the recession is great.
LOVE this! Instead of complaining about the recession, here you are explaining why it's a good thing. Excellent. Your positive outlook has given a boost to my Friday as I sniff and cough through this cold. Thanks!
Nice observations! The recession has challenged us fiscally and mentally. Hope the lessons learned now will carry forward into recovery.
@nishland
Awesome post, Jamie! This recession will show everyone which companies truly are great and which ones are pretenders. Companies, no matter how big or small, will go under, and when the dust settles, the ones that make it though will be ten steps ahead of where they are now.
Another reason this recession is great is because people are learning how to survive and thrive in tough times. When its over, and things are back to normal, people will hopefully be more conscious and more frugal even if they have a chunk of cash in the bank.
Love the optimism.
This was a great post! Thank you for such a wonderful insight. Working for a company that filed Chapter 11 about a week ago, this brighten my Friday!
It's only a good thing if you aren't one of the 2.6 million who were laid off/fired/downsized this past year.
@Mark W - I agree. It can never hurt for all of us to back up and see where our money is going. I love your point about families spending more time together! What a great advantage!
@Ryan Healy - I know I'm looking forward to having a more frugal mentality, especially when the economy goes into its inevitable upswing.
@Glenn Thomas - Hopefully the company you're working for steps up their service and starts appreciating customers, so they can pull themselves out of this economy.
@jrandom42 - A little dose of hardship never hurt anyone. As I said in the post, though, I am not insensitive to everyone that was laid off and businesses that went under. Yet, I am a big fan of resiliency and I think having it (and using it) is the best character building we can do.
Tell you what, tell that to my cousin who lost her job and her health insurance, and was facing her 3rd round of chemo, and will have to put it off, because it's $37,000 she doesn't have. I don't think she feels it's "a little dose of hardship". It's a little hard to "build character", when you're fighting Stage 3 ovarian cancer and no way to pay for treatments.
Tell that to my neighbor who lost his job 6 months ago, has run out of his unemployment benefits, and is looking at foreclosure, loss of his car, and loss of his children. This "little dose of hardship" has pushed him to the brink of suicide.
I love this post! And in it's defense, we're talking about the positive impact it will have on the business world, not the negative consequences that it's had on some of our peers.
We're all struggling. I think everyone can sympathize with that.
I'm inclined to agree with jrandom42 here.
Yes, I think a recession has the potential to re-calibrate the market (after all, we can't all go up-up-up all the time), but I think the post is a bit callous. Saying a little dose of hardship never hurt anyone may be true for people who are used to having three lattes a day, eating out, and having a roof over their head provided by someone else.
There are people out there (many people) that were living hand to mouth to begin with, and now that the economy has tanked and they are out of a job, they are getting desperate. It's all about perspective. You can say "a little dose of hardship never hurt anyone" when you are talking to your somewhat affluent friends, or to people who live at home your their parents, but for people out on their own, without a familial safety net, that do have health and/or mental issues that need taking care of this does not apply.
There are multiple sides to a die. You can't just choose to see one.
One of the saddest things that I've encountered because of this recession:
One of my other neighbors, after a nasty divorce, losing her job and savings 9 months ago, and not in good health, was preparing to euthanize her 9 year old kitty, because she needed surgery she couldn't pay for. My wife and I came up with the $700 for her to save the life of her best friend.
Is this the "little dose of hardship" that leads to "character building", which forces us to sacrifice those closest to us to save ourselves?
If so, count me out of "character building".
Huh? This post doesn't make sense and is extraordinarily contradictory. Congrats!
First of all, you celebrate the recession as a way to get rid of poorly performing companies and forcing companies to make better decisions. Fair enough, a recession can bring about hidden positives especially once the market rebounds.
It is fair to say that Best Buy's celebration of losing a competitor is likely short lived. Competitors dropping like flies coupled with overall weakness in the economy has to indicate weakness in that retail sector. Given that BB's management is fairly progressive, I am guessing they don't think it is great even if they lost a competitor.
Then you celebrate the increased competition as a way to lower prices. What increased competition? We have hit an almost unprecedented period of consolidation in the marketplace leading to lower levels of competition. Major competing banks are now one. There is now only one national electronics retailer. Towns that used to have three department stores now have one or two.
How is this business environment increasing competition? It isn't. Retailers who sell discretionary items are lowering prices because of the lower supply of discretionary income, not increased competition. Let's hope we don't see consolidation in durable goods or non-discretionary items.
It's A Wonderful Life illustrates this point perfectly. While Bailey's S&L may have been weaker, it was the only competition for Potter's bank. When a run on the S&L threatened its viability, Potter knew he would dominate and have no competition.
The most relevant post I have read in a long time. My project team just negotiated a deal for 50% off original pricing on a 7 figure project> We were able to do so because competition is fierce and earning our business now will pay dividends for that company down stream, they won the work by understanding the new economy. Their competitor didn't...
I am sharing your post with business colleagues!!!
thanx...
M
@jrandom42 -The recession has given you the opportunity to be compassionate and save a life.
@Dr. Pepper -I don't think the perspective in this post pertains to affluent people only. Hardship at the bottom mobilizes the largest constituency we have (the poor and middle class) into demanding change, such as better heath care and stronger financial regulations.
The recession is a situation. And hating the situation gets us nowhere, but viewing it as an opportunity to recognize a need for change and create that change is at least one benefit.
Thanks for the post.
@Lance Haun
It is fair to say that Best Buy's celebration of losing a competitor is likely short lived. Competitors dropping like flies coupled with overall weakness in the economy has to indicate weakness in that retail sector. Given that BB's management is fairly progressive, I am guessing they don't think it is great even if they lost a competitor.
-- There is weakness in almost every industry right now. That's not disputable and that wasn't the point I was making. What I'm saying is that the best companies will win the business at this point (and will stay IN business). There is more thought going into purchase decisions right now. Best Buy's celebration should not be short lived, because all the customers who relied on Circuit City will now become loyal to Best Buy because they have proven themselves as a more stable company.
Then you celebrate the increased competition as a way to lower prices. What increased competition? We have hit an almost unprecedented period of consolidation in the marketplace leading to lower levels of competition. Major competing banks are now one. There is now only one national electronics retailer. Towns that used to have three department stores now have one or two.
-- There is only one national electronics retailer? Best Buy, Costco, Wal-Mart, Amazon, etc. Still competitive there. I am still able to demand great customer service and lower prices from these places, because I have other options. I don't HAVE to buy from Best Buy.
-- Major competing banks are not all one. That is a huge oversimplification. I still have the opportunity to choose between letting my money live in the hands of Bank of America, Wells Fargo, WaMu/Chase, and other smaller local banks. And, all of these banks are going to have to work doubly hard to please customers that are wanted by their competitors more so now.
How is this business environment increasing competition? It isn't. Retailers who sell discretionary items are lowering prices because of the lower supply of discretionary income, not increased competition. Let's hope we don't see consolidation in durable goods or non-discretionary items.
-- There is competition for our money! They are lowering prices, which should be celebrated. They aren't robbing us and inflating their prices just because we have more discretionary income to spend. It's helping consumers realize how much we've been ripped off so CEO's can snag bigger bonuses or whatever else OUR money is going towards.
-- Thank you for your comments, but I stand firm on what I wrote in my post. Can't say that I agree that my post is "extraordinarily contradictory."
I would say that for people who are in a more fortunate position, the recession can provide them with motivation to evaluate their status and re-focus on value.
It can also give them the chance to be grateful that they started out in a fortunate position, when many people weren't able to. The next step, though, and one that is key to avoiding smugness, is to think about how people who are more severely hurt by this downturn can be helped through it--and to put one or more of those solutions into action.
Now that's building character.
Olivia,
She was just very lucky we had the money to give her (and I did say give, not loan) and that we love kitties as much as she does.
What saddened me, was the fact that she isn't the only one facing the question on how to take care of their four footed best friends, and that many others don't have neighbors with the resources to help them.
Finally, to add my perspective to Dr Pepper's points, this recession definitely isn't just "a little bit of hardship" for most of the people I know who have lost their jobs, and stand to lose their healthcare and homes. It seems to me like a ruinously expensive way to "build character".
Standing outside and simply saying, "Hating won't help", "Demand change now!" isn't going to make anyone feel better or help them find a job or healthcare that they need NOW.
@Mark F -- "We were able to do so because competition is fierce and earning our business now will pay dividends for that company down stream, they won the work by understanding the new economy. " -- Awesome! It comes down to being flexible and adapting to new environments in order to stay relevant.
@Olivia -- "@jrandom42 -The recession has given you the opportunity to be compassionate and save a life." Wonderful. There's a silver lining.
@jrandom42 -- Haven't you ever been thankful for hardship because it was able to test your own ability to heal and stand back up? Sure, there are going to be people who have been affected terribly (like your friend with cancer), but that, to me, seems like an outlier example. Most writing/advice applies to the majority of people, not the abnormal situations. Plus, things like a person losing their job while having a health crisis happens in a stable economy as well, so when that situation becomes the norm, let me know.
@Dr Pepper -- I can't say that this post only applies to the affluent, because I'm not affluent. I'm a college grad with tons of debt, am moving to SF to start a career on Monday, and feel pretty overwhelmed with the economy as it stands. I just choose to see negative situations in a more positive light.
@KateNonymous -- "The next step, though, and one that is key to avoiding smugness, is to think about how people who are more severely hurt by this downturn can be helped through it--and to put one or more of those solutions into action." -- Absolutely right! Thank you. I'm on it.
@jrandom42 -- "It seems to me like a ruinously expensive way to "build character."" Hardship HAPPENS! And, the best way to deal with it is to put a positive spin on it and try your best to learn from it. You can't change what happened in the past and complaining about how trying the times are isn't helping anyone.
"Haven't you ever been thankful for hardship because it was able to test your own ability to heal and stand back up?"
No, it hasn't. It's made me angry and agitated, because there are so many I can't help, who, through no fault of their own, are in desperate need of help. Nearly all of them are proud, hardworking, self sufficient people, and for them to be reduced to asking for help is some of the worst humiliation they have faced in their lives.
The stories about Merrill Lynch and the $4 Billion in bonuses and the $1.2 Million office renovation just leave me feeling coldly furious.
"No, it hasn't. It's made me angry and agitated, because there are so many I can't help, who, through no fault of their own, are in desperate need of help. Nearly all of them are proud, hardworking, self sufficient people, and for them to be reduced to asking for help is some of the worst humiliation they have faced in their lives."
Some of the worst humiliation? To lean on friends in a time of need? That doesn't sound right. That's like saying someone is too proud to grieve over a death. That's not healthy in the process of healing, no matter how hard the times get. It's not the economy's fault that a person is too proud to suffer the "humiliation" of asking for help. If anything, they should thank the bad economy for providing them the humility necessary to connect and depend on people around them. It has been my experience that most people who are needed actually feel better about themselves. So, it's good for everyone.
Tell me this, were you angry at your friend who you gave $700 to? Or were you happy to help? I bet it made your relationship closer.
@Jamie, many people value self-sufficiency. Whether you agree with that or not, it's very common and is worth recognizing and understanding.
The result is that often people are embarrassed to ask for help. And when people provide it, the askers feel beholden. That is a burden on a friendship, no matter how happy the friends are to provide the needed help--be it financial, emotional, or something else.
One of my friends is dealing with a divorce and severe medical problems faced by her six-year-old daughter. She says that nothing makes her more likely to turn away from someone than the phrase "God doesn't give someone more problems than they can handle." Your most recent response reads, to me at least, like a secular version of that. While I understand your perspective, I would caution you against assuming it is universal or even the majority view (this is true, actually, of almost any opinion or outlook).
I would be surprised if, in the midst of a recession, ANYONE said, "Thank goodness for this, because it makes me rely on my friends." They may be grateful to (and for) the friends, but they're unlikely to be grateful for the hardship.
You've got some good points - but there are plenty of people who are out there suffering. I think there are great lessons to be learned from the recession, and certainly businesses will have to learn or perish. But what worries me is the consumer. By nature I'm a saver and thrifty - that's what I blog about. How come people don't learn about saving, making smart decisions, etc. when they are young? Is that something we should teach in school, or our parents should have taught us? I don't know but it is important that we start learning. Some people were careless or greedy, but it is important to keep in mind that some people got duped or were in a situation of few choices. Also, plenty of people who have made smart decisions in their lives are losing their jobs, and those who saved their entire lives are being forced to forgo retirement.
I always keep this quote in mind, which I was told was by Walter Payton: Tough times don't last; tough people do. But I fear for those who've got it tougher than me.
I notice you didn't address my point about banks consolidating or other consolidations among other industries. There is one less electronics retailer. That is less competition. Agreed?
If you can't see the contradiction, I don't know how else I can point it out. A recession doesn't increase competition. More companies consolidate during a recession meaning LESS consumer choice.
JV - your post is very much trying to look at the silver lining and I appreciate that.
There have always been people in these type of hardship situations troughout America's history who slip from being able to make it to not being able to. It was just easier to ignore them in the past. They were not your neighbor, your sister, your best friend. The people that were in hardship 5 years ago are not any less worthy of assistance than your neighbor is today. They were also hardworking people trying to be self sufficient who were hit with one after another of life's little injustices. As the examples here state, they had savings but it was depleted, they got some unemployment but were unable to secure a job in time or had additional medical expenses pile up on them.
I think a higher social conciousness is another silver lining that could coming out of this recession. I hope we all remember these close personal stories in future times when its tempting to forget about it because it is not in our face every day. Were you someone who 5 years ago would say that you wish the govornment would not take so much of your money and give it to someone who doesn't even try to work, someone who milks the system, someone who only has more babies so they can stay on welfare, why don't they work more jobs, get more education etc?
So many are flocking to the Democratic party right now because they think that it will save them. What can we do to save ourselves? How many will flee from the Dems as soon as its not their mother, their neighbor in financial distress?
To elaborate on my last paragraph (which on its face looks contradictory), people may well look back and say, "Wow, that hardship really caused me to re-evaluate priorities/see what really mattered/learn who my real friends are."
But in the midst of that hardship, I think few people would truly feel much of that. The long view comes in the long term, not in the moment.
Jamie,
Apparently you know different people than I do. Most of my family and friends (as well as most neighbors) are very independent, hardworking, focused, ambitious, clear-eyed realists who have built decently comfortable lives through mostly their own efforts. Most never took out loans for college, but worked part time and went to school full time. Most paid cash for things like cars, furniture and appliances. Nearly all took crap jobs at companies, learned what they could and either moved up and on. They have never taken a handout, welfare, or had anything subsidized or paid for by someone else. None of us have what would ever be considered glamourous jobs. But we all work hard, help the customer as best we can and do the best job that our energy, time, expertise and experience allow us. These are the people caught in the perfect storm of this recession.
Given their independence, drive, ambition, hard work and quiet pride in the lives they have created by their own efforts, can you at least begin to understand how humiliating it is for them to have to rely on someone other than themselves for help? Katenonymous is right on how beholden they feel towards anyone who helps them in a substantial way.
Thanking the recession for humility is kind of like thanking cancer for saving your life.
@KateNonymous -- I understand completely that it is difficult to ask for help. I'm self-sufficient and independent to a fault, but I would never blame the economy for me not getting the help I need if it's offered to me. I don't mean to sound insensitive, because I'm not at all. I just think someone's stubbornness (or humiliation) about asking for help is not a sound argument against what I wrote in this post. And, most people are thankful about hardship in retrospect. That's how it works.
@Lance Haun -- Yes, the economy is sans SOME competitors, but not all. And, why weren't these companies that have gone under pulling out all the stops before the recession hit them? The competition (before they went under) beat them out. Yes, there are less businesses, but there is still competition that is fiercer now, which will equal out to better customer service and lower prices.
@Danielle -- "I think a higher social conciousness is another silver lining that could coming out of this recession." - I agree completely. So many who didn't care before now suddenly have compassion because they are directly affected. I hope this compassion carries on as well.
@jrandom42 -- Have you ever looked into the mental state of cancer survivors? You'd be surprised how many people are THANKFUL for their disease. You'd be surprised how many people become thankful in retrospect for a hardship and don't become bitter and agitated like it seems you may have. I came across this brilliant article and will share it with you: http://www.mindfood.com/at-mag-inner-strength-power-you-mind-body-soul.seo - You will not convince me that people who are too proud to ask for help are just like that, so they can stay in their downtrodden states. Welfare, unemployment benefits, government programs of the like are there to HELP people, not make them feel helpless. I don't think a person is any better because they didn't take loans out for college; that's just a different path. I won't be convinced that these people who suffer hardship now will not be thankful for the challenge if they are resilient. And, they have the power to be resilient; we all do.
You said: "Given their independence, drive, ambition, hard work and quiet pride in the lives they have created by their own efforts, can you at least begin to understand how humiliating it is for them to have to rely on someone other than themselves for help?" -- OF COURSE I UNDERSTAND. But understanding is different than accepting that as a plausible argument against asking for help!
@Jamie, that's true of some cancer survivors. On the other hand, not once did I hear my mother express gratitude for her disease. She made the most of the time she had, but I never heard her say she was grateful that she had less time.
And there is room in the world for more than one reaction--more than one reaction that is valid. It is perfectly reasonable for people to look back on hardship and say, "That was a growth experience, and in the long run I'm glad that I had it." It is also perfectly reasonable for people to look back on hardship and say, "I wish it hadn't happened at all."
To get back to your original post, there's something else to touch on, and it's also the long view. Wells Fargo may be going the extra mile now. But will they still treat you that way when the economy rebounds? If recession has things to teach individuals about priorities and hardship, then it also has things to teach businesses. The question is, how long will those lessons be retained?
In response to the comment above, I believe great businesses will always go the extra mile. Everyone tends to forget the hard lessons when the economy is booming, but you just have to rely on competition and innovative businesses to knock out the stale companies. That's how Best Buy took down Circuit City.
you are a bad@$$ :D
@jrandom - Sounds like you have some great family/friends/neighbors with their financial heads on straight. I find it hard to believe that most people across America are quite that financially responsible.
Most of the people I know used loans for college and still owe tens of thousands in their 30's, used easy credit to buy a bigger house than they should have, pay for weddings, cars, boats, go on vacations, get premium cable and live just a bit beyond their means. All the while never really building up a truly effective emergency fund, depending on their continued employment to afford their lifestyle. More than one big financial crisis or a prolonged unemployment would put these people in serious danger. They are still very independent, hardworking, focused, ambitious people, and there are a mix of proud people and those who ask for help readily, just as I believe there are in any category of people organized by their ability to be financially independent.
Families like those you describe and the ones I describe look identical to the naked eye.
If hardship is so character-building, does this mean a global depression will be good for everyone?
Or that a complete economic collapse will build even more character?
Loved your post. They are probably going to close the Macy's where I live. Some may say recession - but I say it's because of bad inventory management. And you're right, in a poor recession, poor performers can't just skate by anymore. Here's my example: I live in a smaller metro area where people are average sized midwesterners. While there may be tons of size 2s in California, not so much here. And let's just say I'm one of those average sizes (not skinny, but not so freakishly big that they give me my own reality show). If I go to Macy's, my size is gone. Lots of 2s. But MY selection (and the selection for most customers in my area) sucks. If I got to Walmart (which, whatever you think of them, is not crashing in this economy), I can always find a pair of sweatpants in my size. That's because they keep track of what people are buying and stock more of it. The retailers that have this "one size fits all" (no pun intended) approach are going to crash and burn.
@KateNonymous -- I wasn't attempting to prove that all cancer survivors are thankful for their disease; I was just saying that some are. And yes, it's valid to wonder whether or not these companies will go the extra mile once we pull out of this recession. If they want to withstand other potentially ruinous situations, then they should keep up the impressive business ethic. But, then again, most businesses that are doing fine during the recession are already quite brilliant. (So, one could assume they will keep up the great business).
@Ben Apple -- "In response to the comment above, I believe great businesses will always go the extra mile." - Agreed!
@Sir Publius -- Thanks! I try. ;-)
@Rob -- Oh, come on! That's extreme. It's pretty obvious I wasn't trying to say that a complete economic meltdown or global depression would be character building. You're taking my words out of context.
@GenerationXpert -- You bring up an amazing example of a company that's not REALLY doing their job well. Macy's shouldn't be running out of sizes if they were taking proper inventory and assessing it. By running out of stock, they are losing money and by stocking sizes that people aren't buying, they will inevitably have to discount or send to an outlet. Either way, they are throwing their money away. It's a terrible way to run a business. An effective company would, as you said, know to stock up on the sizes that people are actually buying. What are regional managers/directors or research departments or marketing departments doing in these companies? Any business, in general, that has a "one size fits all" mentality are not going to do well. Any survey or research effort could tell them that, but some companies are too unaware to conduct research (or anything else that could potentially help their business). -- Thanks for the comment!
BTW - @Lance Haun -- You said: "I notice you didn't address my point about banks consolidating or other consolidations among other industries." -- If you look up at my first response to you, I DID address this point. I have copied it for you:
-- Major competing banks are not all one. That is a huge oversimplification. I still have the opportunity to choose between letting my money live in the hands of Bank of America, Wells Fargo, WaMu/Chase, and other smaller local banks. And, all of these banks are going to have to work doubly hard to please customers that are wanted by their competitors more so now.
I don't share your opinion, because if companies are sick people lose their jobs and are no longer be able to buy something, which means that the economie will go down.
Regards,
Mario
I think this discussion is a great illustration in differences of optimism versus pessimism. I think looking at the 'silver lining' as JV, Mark, SO, RH, RP and others have pointed out is not about looking at where we are at in an isolated moment, it is about stepping back and taking a look the big picture and seeing how we can work to recover and become better individuals and organizations in the process.
Has anyone else read Daniel Goldman's 'Emotional Intelligence'? I think DG would argue that companies and individuals who maintain an overall positive outlook in spite of crisis will be more successful in the long-run. I am not saying this is easy; with so many people in situations like jrandom's neighbors and friends, it is difficult to remain hopeful and not wonder, "How could this happen?" Check yourself and your employer, do you think you will maintain or improve your current situation, even in the current economic climate? If not, what can you do to make that happen?
I'd argue it's far more nuanced that that. Are there upsides to tough times like these? Sure, and you touched on them. But there's also an enormous downside that's causing many people severe pain that goes well beyond "character-building hardship." It's not as black and white as the original post rather glibly presented it.
@Jamie: One of the things I've learned is that there's very little to be gained by telling people how they OUGHT to feel. Because they feel what they feel, and your opinion (or mine) about the "right" feeling is just that--an opinion, and one that is not coming out of their reality. It's incredibly irritating to hear that one is having the wrong emotional reaction, particularly when the speaker seems to be in a completely different and unrelated situation.
Dealing with hardship is often not about keeping a positive outlook (studies show it doesn't help fight cancer, for example), or being grateful for life lessons, or being the right balance of humble and proud. Often it's about just getting through. And sometimes you don't get through.
@Mario -- I understand your opinion and do believe you have a valid point. If people don't have jobs, then they obviously won't be spending money! However, with what money they might be spending, they are being much more picky. This translates into businesses needing to work harder to get the business they need from the people that are holding onto their money.
@Sarah Golightly -- You know, I hadn't thought of this discussion as optimism vs. pessimism, but now that you bring it up, I completely agree with you! I've heard of DG's book, but have not read it yet. I'll have to look into it. You said - "Check yourself and your employer, do you think you will maintain or improve your current situation, even in the current economic climate? If not, what can you do to make that happen?" -- Great questions! I'm going to think on this.
@Ask a Manager -- "But there's also an enormous downside that's causing many people severe pain that goes well beyond "character-building hardship." It's not as black and white as the original post rather glibly presented it." -- I was using an example of hardship that can build character to prove a point earlier, not to blanket everyone's pain into character-building-worthy. I understand there is pain surrounding the recession, but is that reason to ignore the potential positive outcomes? I would think, in this recession, we'd WANT to hear good news! Or, at least convince ourselves that there is something positive to be seen. And, what about my post is black and white? I was talking about one aspect of the economic recession. Commenters have brought up the aspect of unemployment and emotional reactions to the recession. I was simply writing about how companies should get their act together if they want to stay in business and keep customers happy.
@KateNonymous -- I read through my comments I've posted here and am not sure where you gathered that I was trying to tell people how to feel. Instead, I felt like I was pointing out that it is possible to have other reactions to hardship. And, I am entitled to my opinion that I think it's better to deal with hardship with a positive outlook and extract a meaning from it. I won't tell people they have to feel this way or they are wrong, but I will, unabashedly, advise people to interpret hardship in this way. Furthermore, I'd like to see all these studies that prove optimism doesn't help fight cancer (or lead to a better life, in general). I've read books on the mind/body connection that have proven the opposite of what you've said... that when people have a positive outlook, they can heal and lead healthier lives. However, if there have been studies that have disproved this, I definitely want to take a look! That would really throw me for a loop.
You said: "Often it's about just getting through. And sometimes you don't get through." -- That makes me sad.
Hi Jamie,
A very creative and optimistic look at the recession. Doom-and-gloom talk tends to make situations worse, so we definitely need more optimism.
@Lancehaun is kind of right in that the recession is producing anti-competitive behaviour in some industries such as banking, which are grouping together, often against the consumer. In the UK, the government nationalised a few banks (using lots of tax payer's money) and slashed interest rates, yet the banks have the cheek not to pass on these rates to the very consumers who had to pay for their failures. Similar has happened with oil companies. Perhaps it varies depending on the structure of the industry?
Also, the persistent cycle of boom and bust shows that people JUST DON'T LEARN. booms seem to encourage corruption and loosening of regulation, which ends up causing the bust. This means organisations will be more honest and serving now, but in 10 years time, it may all go horribly wrong again, with the victims being us! Sad times. :(
@jrandom42 Indeed, it's often the SMEs which suffer the most in bad times, which is terribly unfair, as busts are often caused by the large companies, which are more likely to survive.
But is it all doom-and-gloom? Who knows? With the increase of green companies and the hope-inspiring Mr Obama will give rise to a new generation of honest and transparent organisations, which competitively serve consumers while helping the planet. That would be nice. :)
I'm sorry if that makes you sad, but it's true. Not everyone makes it through hard times.
Advocating a particular interpretation IS telling people how to feel and react and think about something. As for where I got the idea that you were telling people how to feel--the answer is that you said things like "If anything, they should thank the bad economy for providing them the humility necessary . . ." That's a very different statement from "Another way to look at it is . . .", and even that has to be carefully timed, worded, and tailored to the listener. But at least the second example acknowledges that there can be more than one reaction, not just the one you're recommending.
As for the studies, they got a fair amount of press in the past few years. I'm sure that you can find links.
"But is it all doom-and-gloom? Who knows? With the increase of green companies and the hope-inspiring Mr Obama will give rise to a new generation of honest and transparent organisations, which competitively serve consumers while helping the planet. That would be nice. :)"
Since people are experiencing immediate crises, the new generation of companies that haven't been formed yet, don't really mean a damn thing to those who are at the end of savings, medical care and foreclosure. Government action is good, but it still takes months at best or more likely years before something gets done to directly address these problems.
It's hard to think about the "new green economy" that's coming in a few years, when your unemployment ran out last month, your home will be foreclosed in 3 months, and your healthcare disappears at the end of this month.
Wow. This is definitely an interesting dialog.
As a chronic optimist, I see exactly where you're coming from Jamie.
Advocating a particular interpretation is helping people see the same situation in a perspective that they might not normally be inclined to see. With reports every day of people losing their houses, banks closing, and people losing their jobs, its refreshing to be reminded that while things may be rough, we can still celebrate the positive. Yes, bad things do happen- bad things are happening- but what is the value of sitting around being mad? Let's DO something about it.
I'm surprised no one mentioned it, but most of us who have commented are in America, a super power to say the least. We've lived comfortably most of our lives, and now, as we experience this bump in the road, we're getting a taste of how a big proportion of the rest of the world has always lived.
Jamie, thank you for your refreshing reminder.
"we're getting a taste of how a big proportion of the rest of the world has always lived. "
Actually, we're still living pretty lavishly for the world as a whole. For example, each of us has access to a computer, and has had it long enough to know how to comment on blogs. There's a lot of assumed privilege in that, no matter how much ramen someone may be eating.
@Meghan -- "We've lived comfortably most of our lives, and now, as we experience this bump in the road, we're getting a taste of how a big proportion of the rest of the world has always lived." -- I had this discussion with my mom the other day. A lot of people were overwhelmingly spending beyond their means and this recession gives us a dose of humility and appreciation for things beyond money. We must remember that, in most companies, people are being laid off because there was greed at the management level. The recession can serve as a refreshing reminder for us all to reevaluate the emphasis we are putting on wealth.
To be clear, I am only talking about some of the population and their obsession with wealth. I know that the distribution of wealth in this country is very uneven.
@KateNonymous -- Because not everyone makes it through hard times, I cannot advocate for a frame of mind that I think best serves people? And there is a difference between me saying that I think the best way to live life is with a positive attitude than me saying that living with a positive attitude is the only way.
I wonder -- why is it that some people have such harsh, emotional reactions to someone trying to be positive during a hurtful time? What does this say about our culture? Why does it seem out of people's comfort zone to discuss the potential positive outcomes of a negative situation?
It's not insensitive for me to encourage people to look at the bright side of their situation, no matter how dark it is. I haven't experienced anyone pull themselves out of a dark place without the help of optimism and confidence in change. The negativity, even if a person does pull through, will come back to haunt that person. We all need meaning for the things that happen in our life. We all want to process in ways that make sense to us and if we can find a way to spin it positively, then we'll have a lot less stress, bitterness, and anger within us.
I am so fascinated with the reactions to this post and I hope we can continue the discussion...
@Jamie, I'm not seeing that you see that difference, based on what you've posted. People come to things in their own time, and work through things differently. What I think is best may only be best for me.
And it can be extremely insensitive to tell someone to look on the bright side of a dark place.
Again, I have a friend whose six-year-old is likely to need her third brain surgery in a year. That child has also had pneumonia three times in two years, and my friend's husband just told her that he wants a divorce.
I am not going to tell her to look on the bright side of any of this. What I am going to do is be there for her to talk to, and if it seems right, suggest small next steps she might take to address specific issues. But I am not going to tell her that she should be grateful for the hardship, or that she'll be grateful for it later.
There is no way I can truly know what she is going through. I'm certainly not going to tell her how she should feel about it. That would be incredibly arrogant and insensitive of me, and that's not the kind of friend I want to be.
@KateNonymous -- I would tell people to look on the bright side in due time. Either I'm not effectively proving my point or my words are getting lost in translation.
I am not the type of person who would tell a friend who is dealing with the hardship your friend is that I don't care if she's sad, LOOK ON THE BRIGHT SIDE RIGHT NOW!
I have tact and I am sensitive to people's pain. I don't think I ever said that I would, at the immediate time of someone's pain, refuse to let them be sad or upset. I have merely been saying that eventually, in my opinion, there needs to be a shift from the sadness to something else (like positive outcomes of the pain, for example).
I never said I would immediately tell someone to stop feeling what they're feeling and be happy right this second.
@Jamie, you have also never said you wouldn't. You've advocated one approach and have reiterated it as your sole rebuttal. So I don't think it's a translation issue.
Hi Jamie- I'm with Wells Fargo's online customer outreach team and just read your comment about the good experience you had at a Wells Fargo store. I couldn't agree more with your sentiment that companies will only succeed by delivering excellent customer experiences, and we are trying hard to do that at Wells Fargo. If you email me which store you visited, I would really like to pass your comment on to the store manager, as I know the team there would love to know that they served you well that day.
Cheers, Kimarie
I have a serious problem with people being far too upbeat about challenges that others face. It reminds me of folks who look down on people who were born poor and just say "pull yourself up by your bootstraps". You have to honestly "walk a mile in a man's shoes" to truly understand.
You can't just "feel good" and "think" your way out of life's problems. Life is about figuring out how you will deal with suffering and challenges. Being positive helps, but accepting reality for what it is trumps blind optimism. Some people get more than their fair share of suffering. It's awfully easy to just tell people to look on the bright side if you've been walking about rosy, sunlite paths.
@Kimarie
Excellent customer service and follow-through!!
"Some people get more than their fair share of suffering."
@Keith, very true. And sometimes there really isn't a bright side to look at.
@KateNonymous -- Agree to disagree on this, then. =)
@Kimarie -- Can't find a link to email you, but the branch was in Chico, CA on the corner of Mangrove and East.
@Keith -- I have a serious problem with people who assume that those who are optimistic have never faced hardship. Talk about insensitive.
@Jamie, my mother spent her childhood in a prison camp during WWII and was a very optimistic person. So you're right, people can retain their optimism even when they experience hardship. But everyone experiences their own hardship, which means that there is no one-size-fits-all way of addressing that.
Going through the hardships I've experienced--which are, on the grand scale, quite manageable--has taught me that I can only truly know my own experiences. Several of my co-workers and I lost mothers around the same time. What I discovered was that I have no advice or insights to give people in that situation, beyond "be sure to take care of yourself." Why? Because I lost my mother, not theirs. Because I'm not them. Those losses are parallel, yet individual. I can tell someone what worked for me, but that doesn't mean it will work for them.
And there is no bright side here.
@Jamie
I did not assume that you never faced hardship and I didn't direct the comment specifically toward you as I don't know the details of your life. However, all hardships are not created equal. Some folks have the tools and resources to respond positively to challenges while others simply do not.
I've been blessed with a unique perspective - the ability to talk extensively with both hedge fund managers and the homeless.
Experience and environment are paramount. I have to say that the hedge fund managers seemed to be a great deal more optimistic about life than the homeless.
Great for consumers! After all, of what import are brief, nameless lives to Galactus?
"Don’t charge me $5.00/gallon for gas, realize I’ve stopped buying, lower the price to get my business back, THEN steadily increase the price and insult my intelligence by assuming I wouldn’t notice this sneaky plan."
Jamie, you are oversimplifying huge problems - both domestic and internationally. Recessions are NOT good. Consumer's having the buying power? Are you kidding me? Consumer's are also the Walmart employees who don't get a pay raise this year, the thousands of Circuit City, GM, Caterpillar employees who are drawing unemployment (oh in case you don't know...YOUR tax dollars pay for their unemployment!). High unemployment, housing market crash, retirees left with little in their 401ks, all push this economy into a spiral. We will be left with more people drawing WIC, unemployment, Welfare, federal subsidized housing, etc.
Is it great to watch our local art education programs close due to tax dollars being torn away to pay for increased unemployment? Consumer power reigning when our schools cannot provide books in a library for our children?
As for the comment on gas prices, you are so far off in left field it is humiliating. Gas prices are not raised and lowered because your local Speedway feels it's fun. Oil prices are determined by the following factors:
1) dependancy of on foreign oil production. We chose not to drill for oil in Alaska or pursue production in other US areas. Thus, we are heavily dependent on the oil producing nations of OPEC. (Please look that up..it's really important!) OPEC nations vote as a group to control the per barrel cost exported out. Countries such as Saudi Arabia, Iran, Syria, etc. are apart of OPEC. If the per barrel cost of raw oil drops below a certain dollar, their revenue portion goes into the red.
Prices went up, prices dropped...right after the Wall Street fumble. If you did your research, you would know that foreign nations invested in our housing bubble -thus they where affected just as we are. Cost of oil fell in response to the crisis - OPEC nations didn't like it...they decided to raise the cost recently again.
If you want to blame anyone for the $5.00/gal prices: look at your own countries ability to dig for oil and the dependancy on the oil producing nations of OPEC.
I suppose since you have so much power as a consumer in a recession, you will be able to forgo driving your car as the gas prices rise. Correct?
Obviously your take on the recession probably is directly related to your life stage. I cannot imagine how tough it would be on someone who has invested so much time over the years into their work, only to have it all vanish in an instant. However, as a Millennial, I am much more in the optimistic camp because I believe there is an incredible opportunity for young professionals.
The past couple of years have seen an incredible jump in prices, and for many young professionals it was incredibly hard to keep pace. In fact, often it felt like I was just running in place. Now with the sudden burst and drop in prices and assets, Millennials have the chance to finally get ahead. Gen Ys, unlike their older counterparts, had relatively little invested either in stocks, homes, or their 401k's, and over the next ten years as their net worth increases, we will have the opportunity to 'buy low', and hopefully sell high.
I agree that the next year or so will be incredibly tough, but we do have a chance to build something out of all this misery.
That's right Jamie you tell them. Dance monkeys! Entertain me!
I spotted this on Twitter today and it reminded me of this discussion. Thought it captured the essence of what I took away from the author's original post, which I still admire BTW:
@loic "Fear sucks because your are concentrating at the consequences of your possible failure. Don't do that. Focus on the positives" #ted
Makes you have a better perspective..
spend more time with friends and family, instead of slaving away at work. Remember, your job has no loyalty.
Also, people will finally start thinking before they buy and stop paying with their credit cards and taking out loans upon loans. Finally, they'll stop living above their means.
I'd like to add that a recession displaces many workers and that is a good thing in the eyes of an organization that has it together. Not everyone is struggleing as much as Circuit City and the others you've mentioned. The employement rate has left many qualified workers looking for work, and they may even settle for a lower salary with your firm if they see good things happening there.
A company is only as good as its employees and finding good employees is often a very difficult task. In the book good to great, it talks about getting the right people on the bus first, then deciding where to go. A high unemployement rate has created a buyers market for those companies looking to bolster their personal. I think a good company will realize this and snatch people up, even when there doesn't seem to be much for them to do.
"You said: "Often it's about just getting through. And sometimes you don't get through." -- That makes me sad."
And this is what happens:
http://www.cnn.com/2009/CRIME/04/21/maryland.family.shot/index.html
Recessions, especially depressions, are also great for extremist political parties. Hitler, Mussolini, Lenin, Franco and various tinpot dictatorships all gained power by exploiting economic problems.
So indeed, if you happen to be a communist or a fascist, or just want to be a brutal dictator, this is a good moment for you! (Not great, because it's not a depression yet)
What's to say that businesses will really react to the recession by improving customer service?
With mounting layoffs and cutbacks, how will customer service improve?
Your post basically came down to: The recession is great because customer service will improve.
Here's an idea for your next article:
Foreclosures: How fewer home-owners lead to better Lawn Care.
Awesome take on a topic that its hard for people to stay positive about.
Opinions, everybody has them, and they are all right half of the time. The fact of the matter is that a recession affects everybody. Unfortunately some are affected more severely than others. The silver lining I cling to is that in the end everything will work itself out.
I got my small-scale companies. say what these are very good information. companies and consumers to manage, but sometimes you need to think about the expectations. sometimes to the detriment of consumer needs to do
I have opened a site for example. I know the money that flows into my predisposition to trade .. tüketicilik a very simple thing: site http://www.diziizledik.com
You got some good points and its nice to read a positive view on this recession.
I've been thinking like this as well; I have a bunch of competitors that are really \bad, but also very cheap, but now clients are looking for more bang for their buck, so they come to me :)
cheers,
Adirec
Great post and great insight, you article made my day positive thinking is how we will turn this recession around. Thanks for sharing this.
@Jamie I loved your post. You have a fresh outlook on the recession. You focus on the positives as I try to do on my posts as well.
Trying to make everyone agree with your point of view is like the old saying, "you can lead a horse to water, but you can't make it drink." All you can do is point out what YOUR viewpoints are. If they agree, great. If they don't, that is great too. This is how discussions start and we can discuss and debate about it through Brazen. Otherwise, if everyone agrees, we would have world peace already. There is always going to be disagreements. We can only share our viewpoints and observations with others.
I prefer to see some disagreements in posts. Sometimes you need fresh new perspective from unbiased people, unlike friends who would agree just to make you happy.
Every situation is different. Not everyone lives and acts the same. We are human, not robots. I for one truly like the perspective of this post. It takes a negative outlook, that is widely publicized, and turns it into a positive and refreshing approach. Thank you Jamie.
To be honest I have experienced a reasonable upsurge in business due to this recession. People are looking for cheaper alternatives to everything so bargain sites are getting a bit more attention.
So it's not all bad.
Jamie, Good post! Sounds a lot like Darwin's theory of survival of the fittest. Recession does improve business efficiencies. And yes, the companies which survive come out stronger.
However, many companies and people need a cushion so that they can focus on R&D and long term plans. And recession kills that cushion and life can come down to daily struggle. And that doesn't benefit in the long term.
It's kind of like an overweight person that has become ill and loses a ton of weight. What ends up happening is the extra weight was fake and then the real person is revealed in the aftermath. Our world was overweight from "junk food" i.e. bad debt, upside down mortgages, low savings, etc. The new world is leaner and meaner.
Best
Ken Hamilton
CEO
Work at home with Tididu.com
Recession teaches and makes people realize there's no such job that's secured. Everyone should increase their financial IQ to survive, and make their money to work for them. Government can't save everyone, and you have to be on your own..
I love this optimistic view of a negative situation. We all sympathize with those who have been laid off and/or can't find jobs. But there are upsides to every situation, and you point them out well in this case.
I agree with you Jamie!
Things happen for the best.
Life is not always good, we must learn to deal with disappointment. From the hard time we learn to survive, we learn to appreciate other people, learn to be stronger, and learn to appreciate the life it self.
Nice post! thank you for sharing your thought :)
I believe the spirit of this conversation is:
"That some good can be derived from every event is a better proposition than that everything happens for the best, which it assuredly does not." - James K. Feibleman
All the companies have to love us that much more to get our business. It's great for deals and a lot of other things. We all have to work hard and give it our best to make it work... it's as simple as that really.
Is it because no one has a job? We're facing another 5 to 8 million foreclosures, and China owns us?
http://www.atlantic-cityhotels.net/
LOL.. Nice post! It really makes sense. In a very weird way, I agree with you. Maybe recession does have its plus points. Thanks for sharing!
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