As entrepreneurs and business owners we all know emotion is the key to successful marketing. But when it comes to making financial and governing decisions in running your business — emotion will make you poor. Knowledge of history and logical analysis of your current situation compared to history is what creates riches.
A perfect example of how a lack of logic and ignorance of history will generate disastrous decisions is the current spending bill “The American Recovery & Reinvestment Act of 2009″ being paraded before the American public as a “stimulus” package.
Here’s a quick clip from today’s Wall Street Journal in case you’ve missed what’s going on:
Now only in government is a measure shown twice to be a failure in the last 6-months & politicians shout “Double down!” Bailout #1 passed months ago in Fall 08′ has been a failure. (And don’t forget the $700billion funneled into the economy during the Summer of 08″, but not labeled “bailout” by the media.)
All this bailout funding has done is cause otherwise healthy businesses (and investors in those businesses) to hold back and wait to see what (if any) help in the form of handouts they’ll get from the government. (For an example of this impact on the business market, see how JP Morgan says “stop talking about damn nationalization.”
The 1st bailout was doomed from a lack of historical perspective. And how can ANY logic have been used when the 2nd bailout bill was rammed through both houses and up to President Bush in less than 30-days? Ron Paul explained dangerous ignorance of history and lack of logic in the 1st bailout in 2min in this YouTube video:
History proves that economic cycles interrupted by gov’t intervention deepen & unleash stored energy on the public. For an example of the impact of interruption you need look no further than the last 8yrs. Alan Greenspan broke the 01′ recession by turning on money supply (printing money) & value of the dollar has dropped 50% in the last 8yrs. 50% devaluation of the US dollar to create a “soft landing”!
Now we have a 3rd bailout bill “The American Recovery & Reinvestment Act of 2009″ positioned to the hurting and unsuspecting public as a “stimulus” package. Yet the Congressional Budget Office (Democrat controlled) admits “approximately 12-cents of every $ in the 2009 Reinvestment Act will have stimulative effect.” As an entrepreneur and business owner, does that sound logical to you?
Use this current political and economic situation as a training ground to reinforce your Mogulogic.
1. Stand guard at the door of your mind. Watch your language (how you speak to yourself) and don’t let the media’s prognostications into your head.
2. Keep one eye on history and one eye on today, and both through the lens of logic. All around you, including other entrepreneurs and business owners, will be people controlled by emotion. Remember that you yourself use emotion in your marketing and sales to motivate people to action. Don’t let the media or the mob pull you into their emotional flow. Their path leads to poverty.
3. Take some action to try and stem the tide of destructive emotion sweeping the land. This Pork Bill masqueraded as stimulus passed house but still needs to pass the senate. There are many points of contention between the house and senate versions. And there is a lot of discord even among the Democrats themselves with the way the money is to be allocated (hurting more rural Democratic states take the back seat to blue cities.)
So you can still take steps 1 & 2 here in just 5-minutes to get your voice heard. And even though the House has already voted, I would still take 2-minutes on step 3 and let your representative know your disappointment with their vote for the bill. (No need 2 look up how your Representative voted. If they are a (D) they voted yes. All (R) voted no.)
Your success depends on your attitude and actions
Benjamin Franklin said “They that give up essential liberty to purchase a little temporary safety, deserve neither liberty nor safety.” Never has that quote been more true.
The masses pay for control even when they can’t get it. They want security even when security eliminates the possibility of their own success. Leaders use history and logic to analyze the present and make decisions that create the successful future they desire.
Which will you be?