Pick One: Work to Live or Live to Work

We all live with dragons in our careers, businesses, lives, and minds. The trick is to reign in your dragon but not let it rule you. Train it to make you stronger and use its power to your advantage.

This week's issue of The Business Brief

The Markets - Consumers will decide what happens next.

Personal Log: Do We Work to Live or Live to Work?

Economy: Reshoring and Manufacturing Jobs

AI is getting very real from Air Travel to Zoos

CEOs Mandate: Train your dragon..."Organization"

The Markets and the Economy

What camp are you in? Will inflation decline further, and will the markets open up to another decade of expansion? Or will inflation still be with us for a while, and will it be bumpy? Consumers are strapped in for a ride. I believe that the consumer will decide after Christmas. They will still be buying stuff, albeit looking for deals. You can call it value for money, everyday low prices, smart shopping, or a cost-conscious lifestyle. They are still price shopping. That's why SHEIN, TEMU, and I suggest you also visit VEVOR; consumers will find incredible deals at significant savings. I am not advocating buying from Chinese online retailers because we already do that at higher prices! Do you think the consumer needs to be more savvy to figure that out?

My point is that in this economy, regardless of what side of the 49th Parallel you are on, consumers will decide if they feel better. In Canada, one million homes will come up for mortgage renewal in 2025. Yikes! For US readers, mortgage terms here are usually 3-5 years amortized over 25 years, and then you renegotiate. No 30-year locked terms here. That could explain part of the US discretionary spending power if you're locked in on low rates. Canada should open up the competition in banking to US banks and change the mortgage terms, accelerating GDP.

Personal Log: Work to Live or Live To Work

What is it about us North Americans (US and Canada) that is so different from Europeans? When I travel to Europe, friends and family tell me that we are too hung up on possessions. I did have one European colleague once tell me that the difference between us was that he works to live, and I live to work—for things. And we have to ask ourselves, why in the world are we killing ourselves? We can't take it with us, at least not all the suits and shoes, and most of the furniture will be given away when I am gone. Our family room is very large. I once showed my wife how to live in a space the same size and make it functional. I don't need the 6,000 square feet of living space.

I was at a dinner this week and spoke with two Federal MPs; we talked about housing. I told one of them that we need a new social contract redefining wealth and ideal housing for Canadians because our expectations are too high. The conversation went on. I brought up Europe and how a large percentage of them live in apartments, own small flats, and share generational homes (three or four generations); some have 99-year leases where it is almost impossible to be evicted if you pay your rent. And the builders and society in Europe seem to be fine with all that. Our view about wealth creation and happiness needs a refresh.

Buying the biggest house on the street and trying to save for retirement on an average income to retire in your home is as big a fallacy as "Freedom 55". Inflation has set back North Americans by about ten years.

So, what do Europeans do with their free time? They socialize, have long late dinners, go to the park, sit at a cafe, and meet people. And yes, some of them meet someone they fall in love with. They are not afraid to say hello to each other. In Canada and the US, we have the growing stigma of being shot down if we even look at a member of the opposite sex. It's all nuts! The Europeans jump on a train or a short flight and travel from one country to another, visit museums, attend live theater, and watch movies. Instead, in Canada and the US, we have men who are paralyzed and paranoid about meeting other people that they have taken shelter in their basements streaming games.

Canadians and Americans Live to Work because many have so much debt that about 43% of Americans, according to Bankrate, believe they will never be financially secure ( I am sure Canadians are not that different). There are too many numbers to cover here; according to this next article, 78% of Americans live paycheck to paycheck?Forbes article. ?It is damning about the situation we are in. It is time for a new human social contract with ourselves. We suffer and struggle because we are living the wrong paradigm.

It is time for a change. Don't live to work; WORK TO LIVE! I am sure the rest will all fall into place.

Economy: Reshoring and Manufacturing Jobs

I hate to be the bearer of bad news, but tariffs on foreign goods will increase prices and will not suddenly make everything made locally again cheaper nor bring all jobs back. Let me rephrase that; it can't be done with humans being the workers and keeping prices neutral. The idea that in this day and age, we will build factories and employ as many people as we did thirty years ago is not going to happen. It can be done with AI and Automation (Robots). This article from Supply Chain is interesting. The Washington Post ?has a different view: you can't replace the jobs originally lost to technology, and technology will continue to take jobs. I agree that Technology has displaced workers in all industries since the 1980s. Globalization didn't help, but technology is the biggest culprit.

AI - It's Getting Very Real (From Air Travel to Zoos)

Most things you hear about AI are related to chatbots, inventory management, and virtual agents. Well, that's not all AI was designed to do. It has far more power than that. However, everyone wants to avoid it because it isn't as exciting. If you're shooting for a senior role, you want to know more than that. Yet , what many don't realize everything will be impacted by AI.

First, at the risk of being hit with a thousand hate letters, AI will make us rethink marketing, merchandising, finance, and human resources to scratch the surface. And the skills required while being told that soft skills are important. I will tell you that companies will be looking at their employees regarding their math aptitude. Why? Because there will be a great deal of data analysis, model optimization, and understanding of algorithms, data patterns, and decision-making matrixes. And if you are part of a team, there will be mathematical modeling, the development of simulations, lots of innovation, and everyone chasing a competitive advantage. Retail Insider interviewed me last week and released this article. AI's Transformative Impact on Retail We talked about AI chatbots and the race for Personal AI Assistants or Agents. My book "Predictive Leadership - How Humans and AI Will Transform Organizations, Innovation, and Competition." will be available on December 10th, and a launch will follow after New Year's.

CEO's Mandate - Train Their Dragon (Organization)

Never underestimate your power to lead and influence change. The next generation of CEOs will lead companies to continuously transform themselves into the next competitive iteration to stay in business and relevant. Of course, it sounds easier than it is, and the first transformation is always the hardest. CEOs and their Senior Executive team must ensure that the organization never becomes complacent or comfortable. That doesn't mean change for the sake of change. It does mean strategic change for the sake of competitive relevance, innovation, and market leadership.

Thank you for reading this week's issue of The Business Brief.