The Benefits of Recessions



Someone once said, that humanity is at its best when faced with great adversity, or something to that effect. This statement is as true now, as the day when it was coined.

If we look at human history, when times were good – we find that there is little to social, technological, literary, nor artistic innovation, we as a species innovate when times are tough, it is the human spirit to persist survive and come out stronger that pushes us against odds to overcome obstacles and adversity.

The same can be said now, the world is in shambles, global economies are in the dumps, and all indicators point to a horrible year, with no sun on the horizon, those of us lucky enough to have jobs are holding on to them, and those of us who are not so fortunate are competing against even greater numbers for a piece of a pie that has been decreasing drastically.

Luckily, consumer spending is not bottoming out, but getting less – -reports that the outlook for Q1/2 of 2010 is grim, but it is not terminal, and figures coming in from the NPD Group a market research company – show that initial figures of luxury tech products – games, and hardware – are in fact increasing although not at the same year on year rate.

So who is to be believed, masses or samples? Logical reason points the way towards the masses, but there is no indication that we are nearing the end of the slump yet, and consumers may in fact reel in spending more leading to future figures showing a strong decline.

So what does all this imply, simply that there needs to be rhyme to reason, things are bad, but are not drastic, established companies are trimming at the seams, partially due to mass hysteria, and partially to red bottom lines – hence hiring freezes and layoffs, cutbacks, etc…

But the shimmer here is, that when people are put against the wall, they fight back, and create innovative ways of getting by, we are going to see new products and services emerge from this recession that will undoubtedly change the way we life and function, with technological investment still moving forward, there can and will be new opportunities, and when all is said and done the entrepreneur will stand triumphant, above the crowd, and the NY Times’ and the Economists of the world will cover them next.

So here’s to thinking – where is the next Ockham’s Razor?


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