Saturday, May 16, 2009

Enlightened Self Interest and the Economy

So, a few ideas for the companies out there in dealing with this economy, that will help out every one in the long run. And remember, the flow of money is from the bottom up, all of these ideas reflect that reality.

1) Cut hours, not jobs. This has already been passed around a lot, but it's hard to over emphasize. Aside from avoiding the cost of increased unemployment insurance, this approach also has the benefits of keeping experienced staff around, so you don't have to retrain when you need more work hours again, garnering you good will from both inside and outside of your company, and reduce any drama involving people desperate to keep a job they fear they are loosing.

2) If you are renting a lot of office space, and have work that can be done off-hours, consider reducing your rent by shifting some of your office workers to evening shifts, and having them share computers/spaces with their daytime workers. As a secondary benefit, this also reduces the chances of your offices being targeted for breaking into at night, as there are people around, and recessions/depressions increase crime rates.

3) This one is for larger retail companies, and only the ones still doing well. It's also something I know isn't going to happen, but if we could get enough larger retailers doing this, I think it would help be a significant boost to the economy, especially in the long run. First, a stockholders meeting has to be held, as it effects stock prices, and the CEO convinces said stock holders to aim for a long term strategy, strengthening the company for survival at the cost of lush profits. Making the company lean and competitive.

That's when you start stretching store hours. Usually later rather than earlier, but it can vary. One extra hour a day, find out how it works after a full quarter. As long as there is a net profit in that hour, how ever slim, you keep it. Then you stretch another hour. If done right, your net profits narrow, your gross profits go up, and you help stimulate the economy by increasing total hours of paid work you are providing.

Now, I'm not an economist, but I'm fairly smart, and I understand the concepts fairly well. The more people who are working, the more taxes they are paying, and the more money they are spending. The more money people spend, the more money goes to companies over all, though in a diffused, averaged fashion. Luxuries suffer the most when there is a lack of money of course. The ideas I posted above are aimed at increasing the trend towards people working, and thus spending. None of it is a cure-all for our economy. But it is a small thing to try and make things better, which can have synergistic effects with other stimulation efforts.

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