Friday, September 16, 2011

The Economy . . . Getting It Real

While I do not provide economic counsel to my clients . . . I do occasionally throw water on particularly terrible ideas, like this one . . .

"Jim, we are thinking the economy is turning up. Might start hiring in anticipation of increased demand," eager anticipation in his voice.

"Really? You want to hire "in anticipation" of demand, in the face of continuing intractable unemployment, a long term poor housing market, low business confidence, unsustainable growth in sovereign debt, uncertain political and global leadership, and debt problems in Europe?"

"Either you are very lucky and know it, or you don't read the newspaper," I reply, non-plussed. "How about you wait and see some of that "anticipated demand" before hiring?" I add.

"You are negative," came the disappointed reply.

"Correct, I am."



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