Looks like
in the PC era, more people are going to be conservative in many ways. People
are likely to postpone a purchase if not avoid it all together, at least for
the immediate future. We are likely to become
more doubtful and that will delay
decisions. These are the natural
behaviors in any uncertain situation. So, Gold may turn golden again as a safe
bet; but that is no good!
Shed Conservatism and Spend our way out.
Such
conservatism is counterproductive. Everyone hopes that someone else will spend
and that would help the revival of the economy. So how to shed that
conservatism and motivate people to loosen their purse strings? While for white
goods and many luxury goods, the supply side issues can be addressed rather
easily, it’s the demand side issues which need higher focus and attention from
the government. It is not possible for
the government to address and manage all the areas. Government must prioritize life of millions
and weaker sections of society. Therefore, there is a responsibility for the ‘economically
well-off population’ of the country to shed the natural tendency to be
conservative. It is said that twenty-one
days are good enough to acquire new habits, this lockdown would have made us
conservative in many ways including spending. So, a conscious behavior change
is needed post lockdown. We may have to buy a few things just to support the
economy – car, bike, fridge or even a new dress. Government can support such
activities with both monitory and fiscal benefits. Government too must shed its
conservatism on fiscal deficit. This is classic
Keynesian economic situation, let’s join the government with our might to keep
the money flowing- digital or cash, it doesn’t matter now. Bring it on ………. Let’s spend our way out.
Trust, it
can move mountains.
In times
like this, we are likely to be more doubtful if not suspicious of all our
business interactions with people. Again,
that is not going to help the economy or our social harmony. Sadly, we don’t see trust being exhibited much
these days and that is causing more problems in finding a solution for the
Corona virus issue. In business, leaders must go out of the way to ‘Exhibit
Trust’ with all the stake holders – be it suppliers, vendor, partners,
employees and even government. This will help to get the speed and to minimize
cost. That is one way to be efficient - saving time and cost. Of course, trust, but reserve the right to
verify! Getting the economy out of this lock down is
nothing short of a Herculean task, though Hercules never moved any mountains. With
mutual trust we can, so be armed.
Build
Capacity, the next one is around the corner.
It’s very
unlikely that the mankind may face another nuclear war. With the stockpiles we
have an accident can’t be ruled out. So governments must relook at their
priorities in the AC era. As warned
earlier, health issues can cripple the world as we are experiencing now.
National heath is national wealth. So,
what is our long-term Capacity building plan? How are we going to spend our scarce
resources? These questions need answers after thorough analysis. Not just
governments, private citizens and business leaders also must think deeper. It’s
likely that a pandemic like this will be as certain as our general election. Do
we have any institution like Election Commission to deal such a situation? So,
it’s time to have PC - Pandemic Commission to prepare ourselves. The last mile
delivery of service is a challenge
equally for business and governance. We need to learn from each other’s
experience. In cricketing terms, one
should not get bowled around the legs more than once!
(first posted in Linked in on April 26, 2020)
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