Monday, February 2, 2009

Detoxing the Economic Crisis4 - MANAGE PERCEPTIONS

PERCEPTIONS as any economist will tell you can be lethal causes that unleash behaviors that will adversely affect the economy. If the businessmen perceive that the economy will slow down, he will already take steps to cut down costs - cut production, meaning retrenchment of resources.

Likewise, if a consumer perceives that the economy is slowing down, he may cut down on consumption expenditure will lead to a decline in demand for goods and services which in turn will affect the productive sector which in turn may lead to rising unemployment.

I think by now you can see the point - negative perceptions about the state of the economy can bring forth chain reactions which actually brings the economy into a bad shape! So perceptions must be managed.

Political instability only fuels negative perceptions.

Average leaders who are totally unimaginative in their economic solutions will only fuel negative perceptions.

Financial leaders who speak negatively of the economic future and/or speak completely unintelligently will only fuel negative perceptions.

Leadership that is unable to provide economic direction and move the public (both on the consumer and the producer side) will only fuel negative perceptions.

Negative perceptions leads to speculative behaviour which will injure the national economy.

These MUST be managed.

There must be firm, intelligent leadership. Rhetoric and mere politics will only drown the country with the economic tsunami which may largely be a result of speculative behaviors due to lack of economic perception management.


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