What Does A Politically Incorrect View of the Job Outlook Imply For Your Business?

Just when you thought the world was getting back to some form of normal, the economy changed again. And it looks like turbulent and roller coaster economic volatility is still here for the next few years.

For business that has to make decisions with mid-term and long-term effect, you want real information, not the recalibrated type oriented for immediate voter appeal. If so, you may benefit from mining the information in the article by best-selling author and financial advisor John Mauldin in the periodical Business Insider titled It is All About The Jobs — And Gold.

He suggests job statistics are worse than Washington wants to admit. As one example of a series of somewhat mundane sounding statistics, economic interpretations and risk management points, he refers to the fact that recent data keeps getting revised downward after being released.

Why does such a mundane sounding issue as changing prior month job data impact your business model decisions? This matters to you because (a) the optimistic spin goes out with pats on the back so you will move forward optimistically in your business tactics and strategy, (b) the revision downward gets a footnote after the fact, which is normally ignored, and (c) by revising the numbers downward after their initial release, it is easier to describe job changes in a later month as an improvement. So the short-term oriented government proclaims how well they are doing to help business and you have the wrong feel for the economic outlook.

If you are concerned about the possibility of whether or not, the economy could encounter a second downturn, even recession, think about this. His implication seems to be that we are teetering on a double dip recession, when there is such potential for upside if the administration and government were less anti-business on regulations and costs.

In spite of all these concerns, you have to make the business decisions today needed to run your business and life.

Should you hunker down to conserve cash and go more fiscally prudent in your company or view this as a strategic opportunity to be optimistic?

Every person’s situation, particularly their cash resources, is different. For those fortunate few with adequate to great access to financing, you might remember the concept that the time to make business decisions is to keep you head when others are losing theirs. Of course, keeping your head means looking at your industry and business opportunities truthfully and from an independent outside perspective. Those less fortunate in their current balance sheet position and future cash flow projections might consider how to move into the resource richer status to be able to take advantage of opportunities in this new turbulent world.