OverLinked » economy

Inspiration from Hardship

LP — Mon, 27 Apr 2009 19:47:22 +0000

At lunch today I saw a greatly inspiring image – that of a lone runner getting his daily jog in while it was utterly pouring down rain. Here in the south, when it rains it makes us feel melancholy. We cancel plans for voyaging out in the rain. That’s why this runner’s simple act is so inspiring.

Just as there is a dismal economic environment going on, we have to accept the environment but we do not have to settle for allowing it to affect our normal plans, strategies and activities. Businesses who may be in an industry affected by the downturn should not be “brought down” by it. They should instead see this as an opportunity to be one of the only ones out there on the road “running”.

People will take notice and they will remember. Those with the courage to lead us through these tough times will take a small notion of courage and turn it into a larger, more enveloping movement. Anyway, just thought I’d share the sentiment.

Market Forces in the 3rd World

LP — Mon, 30 Mar 2009 14:56:10 +0000

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How Visa Gift Cards can Save the Economy

LP — Fri, 20 Feb 2009 16:44:08 +0000

Paul Krugman, a Nobel Prize winning economist, recently noted in an interview that the stimulus package simply isn’t big enough to cover the current need. While this is a hot topic, I think one of his points that I think everyone could agree on is the simple psychology of a recession. When the government starts giving away money to encourage spending in an uncertain economic climate, the natural tendency is to save. From the interview:

“So you’ve only got $600 billion to fill a $2.9 trillion hole.” What’s more, he argued that $350 billion of the package slated for tax cuts will provide some, but not much, stimulus traction because households are likely to save rather than spend large portions of it. That’s the “paradox of thrift,” Krugman noted. Normally, encouraging savings is a great plus for an economy. But in a downturn, households (and businesses) worry about the future more, and decide to conserve resources and spend less — just when spending is needed most.

If we know this will occur en masse, then why can’t we steer the stimulus using specific payment forms.

In other words, Visa Gift Cards! The last time Americans received a check we received it from the Bush Administration via the US Treasury in the form of a check. We had to deposit these or cash them in a bank. However, just by taking a recent encounter with the government as inspiration, the FTC recently conducted their HD TV Converter box rebate program using gift cards. Why could not any consumer-focused stimulus be conducted in the same way. I would be more inclined to go down to Home Depot and Fry’s and spend several hundred dollars on some landscaping materials and maybe a huge HDTV, if it was in the form of a gift card.