TO SOLVE ANY PROBLEM, IT MUST FIRST BE RECOGNIZED AND UNDERSTOOD. THEN DEFINED. ONCE PROBLEMS ARE WELL-DEFINED THE SOLUTIONS BECOME MORE OBVIOUS.
“A problem well stated is a problem half solved” (Charles Kettering).
If you can define the problem, solving it becomes easier. Running away from any problem only increases the distance from the solution. “The easiest way to escape from the problem is to solve it.”
“An ounce of prevention is worth a pound of cure.” —Benjamin Franklin
Now that you’ve read these pieces of timeless wisdom, how will you spread the word to remind everyone you know or work with of their truth?
CONSIDER THE PROBLEMS FACING US TODAY—RECESSION & INFLATION
Are we in a recession or not? Yes & no! If it Quacks like a Duck and walks or swims like a Duck—it’s probably a Duck! Conclusion: We are in the first stage of a recession, but it’s an unusual one, because it has many positive symptoms of a short, or shallow recession. Some areas are still “doing ok” and labor shortages still persist—for now! The Fed policies & Dems actions can cause “stagflation.” This is a tough one.
DOING THE WRONG THINGS MULTIPLE TIMES DOESN'T MAKE THEM RIGHT—IT MAKES THEM WORSE.
When inept leadership only knows how to throw money at problems, the problems do not get fixed—they either get hidden—or worse! Ironically, Joe Biden learned this at the knee of an expert—Barack Obama—who applied this wrong remedy over and over. This was a chapter in my 2012 book written with Dave Lukas, Hope is NOT A Strategy—Leadership lessons from the Obama presidency.
INFLATION IMPACTS EVERYTHING
First Biden & the Dems “created” a lot of new money (borrowed, debt) with no intrinsic value supporting it…the textbook definition of inflation. Sort of like throwing gasoline on a fire instead of water to put it out! The Fed comes to the rescue to rein in inflation. How? Increase interest rates. They think that will slow down the economy. (Like throwing a blanket over the fire, it seems to help hide the flames until the fire burns even brighter!)
BIDENS BROKEN PROMISES COULD BE A BOOK TITLE
No one making less than $400,000/year will get a tax increase. Not exactly. Their money will just be worth 8-9% less in purchasing power—sort of a hidden tax increase. But wait, says Biden & the Dems, we need more money to throw at problems! We can get that by taxing the big companies that provide the goods and services Americans buy (with their inflation reduced dollars).
HIDDEN TAX INCREASES ARE REAL…FOR MANY MAKING UNDER $400k
What must these big corporations do to raise the money to pay Biden’s new taxes (the misnamed Inflation Reduction Plan)? Companies must raise their prices or lay off workers to pay the new taxes (or alternatively lower company earnings, which impacts everyone whose pension, IRA or 401(k) plans have been invested in those companies!) Who bears the brunt of all this? You, me, and all Americans who now have dollars worth less (inflation & higher interest rates) goods & services that cost more (to pay more taxes so Biden & Dems have more new money to throw at problems), or face layoffs
WHAT COMPANIES CAN DO TO OFFSET HIGH INTEREST, INFLATION & TAX INCREASES.
1. Use all available technology. Smart phones like Apple iPhone have capabilities that most users don’t begin to fully utilize. Learn more, use the technology better!
2. AI (Artificial Intelligence) is coming fast, and it’s poor cousin Machine Learning is here now. EXAMPLE: Consider a vacation/ business travel plans: YOU make reservations on line, get flights on line, get cash from an ATM, buy supplies/groceries, etc. on line or use self-checkout, pump your own gas/pay at the pump, use WAZE or AAA to navigate your driving, order your meal from GrubHub, use TeleMed to verify your Doctor’s cautionary Input, get RX via mail order or delivery, get movie tickets via Flixster/Fandango, and call the people—FaceTime—that you hope to see, and more—everything that was once done interacting with people, is now done by you, via technology.
3. Cancel out busywork. Stop using Reply to all, use out of office notices, replace time-wasting, lengthy voicemails with short texts, start storing info on your phone, tablet, etc., and use calendar reminders, add notes to your calendar, add addresses & use Maps to navigate. Set rules about meeting length (most meetings don’t need an hour!) Curtail phone tag, and weather reporting on a business call!
4. Learn how to avoid the boom & bust of supply chain cycles. Human nature seems inclined to deal with shortages by over-ordering, resulting in worse shortages and inventory excesses later. Measure and manage wasteful Complexity (see my 2008 book, The Complexity Crisis). (Copies are readily available from my stock, just for cost of shipping—it weighs 1 lb.!)
5. Shop at warehouse clubs like Costco, Sam’s for quantity buys, and that includes company purchases and big personal items like cars, big screen TVs, furniture, etc. and high quality private label goods (typical example: Costco’s private label of Zyrtec antihistamine costs the same for 365 tablets that a 30-tablet bottle costs at drug or grocery stores.) Shop groceries at ALDI whose prices are amazingly low and private label products are very good quality. Read the latest issue of Consumer Reports magazine which is devoted to Saving Money.
6. Ask for price matching on purchases. Example: A recent Microsoft Surface laptop I bought was advertised at $300 less at Best Buy than at the MicroCenter (A favorite full-assortment & service computer store) who price matched, and a sales associate price matched the Microsoft Pen reducing the cost by 1/2!
7. Share copies of Rocketships and Parachutes, my latest book, which is full things learned over 50+ year career. It’s a great gift item for up and coming managers and professionals. “”..like having a mentor in your hand” is how one reviewer termed it. Either buy it on amazon.com — https://www.amazon.com/Rocketships-Parachutes-Lessons-launch-career/dp/1545316406/ref=sr_1_1?crid=13XAS7SL49PE&keywords=Rocketships+%26+Parachutes+%2B+Mariotti&qid=1660509426&sprefix=rocketships+%26+parachutes+%2B+mariotti%2Caps%2C88&sr=8-1 or email and ask me if you want a signed personalized copy for a gift.
A PERILOUS PARADOX
The IRS & Biden’s Justice Dept. — the one place in America where you are “guilty until proven innocent.” Melania Trump thought she was leaving middle European countries’ autocracy for a real representative Democracy—Wrong!
WORRISOME TOPICS TOO BIG TO COVER NOW—I’LL SAVE FOR THE NEXT EDITION.
—The line of succession to the US presidency is full of incompetence! Now Biden, next Harris, then Pelosi—unless the GOP Retakes the House Speaker position!
—Putin’s brutal, illegal invasion of Ukraine continues…need military help!
—China’s blockade simulation threatening Taiwan…let’s hope it doesn’t escalate.
Both countries—Russia & China—economies are tanking due to their failed ideologies.
—Who runs against whom for the presidency in 2024?
PLAN AHEAD—TO VOTE FOR NEW LEADERSHIP IN CONGRESS—THIS COMING NOV.
Both Senate and House, plus important elections in your State.
Best,
John
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