Friday, February 13, 2009

The Trickle Down Effect and You

I don’t think people realize how widespread this effect is in life. It can be demonstrated in almost every situation that arises and really just explains a ton of trends we see. I mean, every decision someone makes will have an end result or long term consequence, a.k.a. the trickle down effect. And I think we also don’t take into consideration, those effects when making decisions. 

Let’s look at business and jobs as an example. These industries are delicate things; the tiniest bump can send them out of control. The economy is basically a circle; people work, make money, spend that money on other things that other people have a job to make and around and around it goes. If those jobs are no longer available, those people no longer have money in which to spend on other peoples’ good and services, which then forces those businesses to let go of some of their employees. It’s a viscous cycle, a negative yet good example of the trickle down effect. 

The good news is that it can be reversed, to go the other way in a positive manner. If we can stop overseas outsourcing, for example, and create/inspire/leave jobs here in America, the trickle down effect will work for us. If we can stop laying off our employees (which actually hurts the business in the long run (but that’s another story)), then we can provide that crucial first step in offsetting that downward spiral also known as the trickle down effect.  

Anyone else have ideas/comments/suggestions?

-Frank Viarra

1 comment: