allaboutwomen

Const reference in the economic world today to the term "The New Normal" is there something like means "get used to it Jack, that is the way it is".

I spent several days recently listening to discuss the State of the economy and business at various economists. Much of its analysis is to propel humbling business, employment is slow, interest rates are low (so a loan), blah, blah, blah at all times. Overall, while it is a feeling that while we marginal can be economic progress, the economic reality that is for the most part, with the exception of a few industries, business is still largely in the toilet.

What is worrying, as about the horizon is the almost universal feeling heavy government borrowing, endangers our future caused by a budget where our revenue significantly exceeds our expenses. Couple this with a runaway "claim" system of social security, Medicare, etc. us in brings serious danger for the future. Unfortunately our political system dealing with long-term issues, avoid until you become short-term crises. We are here the wall when meet in the coming years, and we spending be questions if we are forced to treat.

So I have all this sobering Outlook add what?

While I no optimist economic am and clearly background have not those who (maybe that's an advantage however) have spent their lives after the economy, I have a slightly different perspective.

Here's my take:

The lethargy that iterates through the economy and real pain by pain companies and individuals are our wake up call to the new reality we face therefore "the new normal". I think frugality is the new normal, and that there is a significant upside risks to this economy.

Businesses and consumers, that great year 2008 returns as if well-being was further one given and it was OK to spend tomorrow's dollars today with little concern. Based on consumer houses much of the American public purchased cars, toys, etc. beyond their means. Credit was abundant. Want a home (or houses)? No problem. Getting a "no doc"-loans. We all thought that estate continue to appreciate real value. Began so many buyers their new mortgages to pay only interest and then thought that the line with would deal the years down, you balloon payments due. We the House for a multiple of the original price anyway will sell at this point, we thought.

We all know that the economy hit the wall in 2008. The financial system was down. Financial institutions had far more worthless loans when you could process and found our homes "under water" worth far less than the money owed many of us. As financial institutions stop lending money and increased foreclosures.

Consumers to reduce their expenditure. Of course those out of work, or those who fear their jobs to cut way back on spending. The American public stores more now and this part of our current economic malaise is very good, long term. However, business growth increased consumer spending no more fuel. That's why companies have cut back, reduced staff and many good people have lost jobs. Unemployment 9% is still very high and unemployment is much higher. In most cases we are caught in the same catch 22. Consumers can spend a little more but far more economical and business may expand, but always so easy and very carefully to rent.

The good that might come from this period is the recognition that economy as business and personal strategy provides a cushion for a "rainy day". Was that the American public to save more $, and you do now. Austerity and humility are to be followed. Conspicuous consumption is not.

These new economy found that dampens hope for economic recovery in the short term so the "new normal",. Can be in an economic drought, where the economy improved slightly, we is largely been stagnating. My hope is that if this economic malaise ends and it ultimately is that we don't forget the terrible lessons we have learned.

Unfortunately the best teacher is the odds. But a little more savings never hurts.

Lonny strum is Managing Director of strum Consulting Group provides strategic business marketing and business consulting professional services firms and businesses, an independent review of their marketing activities.

Lonny has a 30 year background in marketing and CEO of two of the greatest Philadelphia area communication agencies had been part of the management team of BBDO / New York, one of the largest advertising agencies of the nation.