Monday, January 2, 2012

Baby Boomers and The Old Normal


The Big Myth

For many baby boomers and the generations that followed, our current world as we knew it was the future we would have.  Not true.  A brief look at history debunks that belief.  However, we acted as though we knew no better and chose to believe the myth.  However, that current reality was truly a blip on the timeline of the world.  The short story that follows is a metaphor for our society today.

Fred

Let me introduce you to Fred.  Fred is 45 years old, married with three beautiful children.  He is a loving husband and devoted father.  He is active in his church and in the community.  He lives in a nice middleclass neighborhood and is enjoying life.  He has a great job with a good company; enjoys his work and the people he works for and with.  Life is good.

Fred’s Story up to Now

At age 22 Fred went to work for a large firm with the goal of becoming successful and making a good living for his family.  He worked hard and achieved a respectable professional level in senior management and was respected by his peers both in and outside the company.  Fred had lived through several economic contractions, but managed to survive them (he thought because he was rather indispensable by the firm).  Fred was content, if not happy with his life’s situation and had no contemplation or need to change his career path.

History up to Now

After the Big War, World War II, 18 million men and women came back home from overseas.  These men and women and the U.S. society had been changed dramatically.  The Officers and Generals of that time, along with the other men and women of that era, collectively dedicated their efforts to create the era of giant corporations.  They instilled into those companies some key components of military culture – the key one was loyalty.  Take care of your soldiers and they will take care of you; take care of each other and things will be good.

This became the era of the large benevolent corporations; unheard of until this moment in history.  It created an unspoken but useful social contract between working people and corporations.  You subvert your needs to the company needs and the company will take care of you.  In the process we began to create a set of unintended consequences no one thought about.  We created the “Company Employee”.  People did not have to remember or retain their survival instincts and skills taught them by their parents and grandparents.  Why should they?  Their new social contract provided all they needed without a worry in the world.  Go to school, get a job, work hard and retire with a great pension and benefits.

The above, alone, would prove to be enough, but there is more.  Something more menacing to our society sprang up during this period.  A collaborative journey between the government and the governed to create a social contract that removed all worry about security; the government in all its wisdom would make us secure.  Some say this evolved from intellectual elites while others say it was from naïve, gullible people that believed it was possible.  It is more likely a "both" "and"; those that believed they knew best for others while some people wanted to entrust their future security into hands of someone they believed they could trust.  Work hard, pay your taxes and you will not have to worry about your security.



What went wrong?
Plenty!  The above was both unrealistic and unsustainable.  By 1985 many of the old Generals were dying and retiring turning their companies over to the young complacent generation that viewed security as a birth right; security simply “was”.  Meanwhile, the New World Economy was giving birth.  This changed all the rules the new generation had learned to play by.  Let’s examine a few disruptions.
-        The speed of business life cycles accelerated.  90% of the Fortune 500 companies twenty years ago do not exist today.
-        Outsourcing manufacturing to low wage countries and becoming a “service economy” failed and it became a nightmare. 
-        We began to outsource anything and everything that could be done cheaper and with equal quality to other countries; legal, professional and even medical.  CEO’s were rewarded and allowed to keep their jobs on a quarter-by-quarter profit achievement.
-        The impact of innovation was sorely underestimated.  In fact, it accelerated the ability to outsource even more jobs overseas while continuing to erode jobs here at home through technology.
Further, the growth of government to fulfill its promises was staggering and the wealth it had to take from society was proving to be disastrous.
-        Worst of all, it robbed individuals of their survival instincts and skills
-        Over time, we created whole segments of our population that had become dependent on the government to care for them and provide for them; individuals as well as private entities.
However, Fred and his generation did not know that or understand it.  After three generations, the unrealistic and unsustainable became the norm.

The Crash

As we now look back, the crash was a long time coming.  In fact, we were on the journey for years.  However, we did not see it or did not want to recognize it.  Our reality was proving to be unrealistic and unsustainable.  Corporations could no longer "take care of their people" as in the past.  While the government promises were taking a huge toll on the economy through the sheer size of government and the cost to society to run it.   Recent events simply accelerated the impact and severity.  However, what we had begun to believe as normal was coming to an end.  The period between 1945 and today was simply a small moment in time and could not be sustained; at any cost.  The consequences got here faster than anyone expected.  Even worse, it caught the U.S. society ill prepared for such a major disruption.
-        The collapse of the National Economy and World Economy
-        The rise of the Micro (regional) Economies; brutal competition
-        The inability of the large, too-big-to fail corporations to lead us to recovery
-        Companies being forced to react to the above; no hiring
-        A trend that will continue for a long time to come
-        The realization the government cannot be "the trusted one" to provide security for all; there was simply no way to continue funding all of the promises.

This left Fred and his generation looking for something or someone to rescue them.

Back to Fred

Fred came to work as usual that day.  Things were bad and he knew it.  It was only a matter of time when the company would have to make some very difficult decisions to “resize” itself to stay alive.  Fred was not prepared for what happened next.

Fred’s boss walked into his office and calmly explained to Fred the company was being forced to shut down his division.  Fred sat in silent disbelief.  His boss was very kind and sensitive in delivering the information, but Fred could hardly listen.  His mind was buzzing so fast he felt dizzy.  “What???  What am I going to do?  Will I get a good “package”?  How will I tell my family?  In this crisis will I ever be able to get another job?”

Fred’s boss stood up, shook Fred’s hand and thanked him for his loyal service and taking the news like the professional he was.  He then said he needed to contact HR to receive the training he would need to communicate the bad news to his associates.

Fred sits back and begins to think.  The Nation is at 8.6% unemployment and his region was at 12%.  Were there going to be any jobs for him much less his people?  The experts are saying they are not even sure we have hit the bottom.  There may be more bad news to come.  He remembered one broadcast where the expert was saying this could be a 3 – 5 year recovery.

To make matters worse, the Nation was in a full blown crisis over its debt and spending.  We had a country divided.  Over 42% of all households were dependent upon some level of state or federal money to sustain themselves.  Those working were beginning to take a hard line on the taxes they were paying to sustain the 42%.  Again, there is no right or wrong.  It is a "both, and" situation.  The Government simply cannot sustain the 42% without destroying the economy that paid the taxes to sustain them.  We are stuck in a situation with no apparent way out.

What was Fred to do?

Fred began to think deeply about how he and his fellow citizens got into this situation to begin with.  The politicians entrusted to operate the government could not turn off the spigot of money flowing to those who had become dependent upon the government largess out of fear of going down in defeat at the next election.  This, while knowing the current situation was unsustainable. 

As a nation, we had created pure politicians that were no longer the "statesmen" the country was founded upon.  These men and women were mostly career politicians, not statesmen.  By definition, they behaved in a manner that enabled political popularity while putting the country's greatest needs second.  Blame the politician?  Maybe not.  The people elected and re-elected those that gave them what they wanted.  This merely deepened the divide and made the situation seemingly intractable.

Fred began to realize there was no one or nothing to turn to.  Yet, something had to be done.  Our whole nation and our way of life is slipping away.

Back to the Future

“Every morning in Africa, a gazelle wakes up.  It knows it must run faster than the fastest lion or it will be killed…every morning a lion wakes up.  It knows it must outrun the slowest gazelle or it will starve to death.  It doesn’t matter whether you are a lion or a gazelle…when the sun comes up, you’d better be running.”         - source unknown

This is the nature of life.  Eat or be eaten.  The moment we gave that away to another, we began a slow downward spiral into helplessness and hopelessness.  There is no entity large enough, wealthy enough or sustainable that can take care of all of us; you or me.  We see the evidence of this throughout the world. The only path out, is through.  We must take back the responsibility for self and our country.  That is a hard choice and one fraught with fear.  Yet one that must be made.

What choice do we have; change or die.  Our immigrant ancestors did just that!

The U.S. is on the precipice of a new age…
        Just like the last new age at the turn of the last century when immigrants from Europe shed the yoke of their feudal lords,
        So too, we must shed the yoke of the paternal corporations and our dependency on a government system for our security
        And have the courage, as our ancestors did, to purchase a one-way ticket to a new life

The world has changed forever
        The nature of work has changed
        The “false normal” is not returning; the “old normal” has returned
        You must change to match the new reality; whatever that takes; survival skills
        You must transform yourself to be successful
        You and I must transform our society and take back our birthright
        It’s time to buy that one-way ticket!

What must I do?

The lions are back……You must get up…get out from under that shade tree on the savanna, and start running

But, here is the good news…You were created to win against the lions! 

It feels better to be running rather than sitting…It will transform you in mind and spirit

Get into action; do something!

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