Recession Proof

Lessons I've learned about how to withstand a recession.

1.      Prosperity Hinges on Belief

Have you ever heard the old adage “a rising tide raises all ships”? Have you ever heard that the difference in those who achieve monumental success and those who don’t is their belief? Do you know the difference between the lowliest beggar and the mightiest king? It's how they think.

The greatest commodity in the world is a thought. Everything you see in this world began as a thought. Thoughts are things, and those thoughts, whether they are negative or positive determine how you view the outer world. As Inkey Johnson, UTK football legend and motivational speaker says so often “How you view what you do will always determine how you do what you do.” In sports, for example; if you think you are going to lose – you do. In business, if you think that your product won’t sell while demonstrating it to prospective buyers, they don’t buy. It’s simple, yet profound. Whatever you can conceive that you can achieve you can, if only you believe.

“How you view what you do will always determine how you do what you do.” -Inky Johnson

Economic recession hinges on belief in some way, shape, or form. If you believe that oil reserves are going to run dry due to conflict in the middle east, as many Americans did in 1979, perhaps you will conserve and ration oil (even though global oil supply only ever decreased approximately 4%). If you fear that you are going to be subject to a terrorist attack when checking in your bags at the airport, then perhaps airport security increases and the cost of flights rise with it. If you believe that you are going to catch a virus that could potentially harm your health or further some pre-existing condition that you suffer from when you go out in public, perhaps you quarantine the country and enact social-distancing orders. One thing that holds true is that most of the last half-century’s recessions were all a result of widespread fear.

Now I won’t go to far into the rabbit hole here, but let’s say that there is a sliding scale, with one end being fear and the other faith (or courage – better yet, let’s call it courage). When the majority of folks are operating on the fear end of the spectrum – scared to go outside without a mask, fearful of touching things without gloves, constantly watching the news outlets to get updates on death tolls and total case numbers – the results are what we see happening in America right now: economic recession. Businesses aren’t operating as normal which is resulting in layoffs and furloughs and as a result, less money to be cycled back into the economy. When folks start to get tired of hiding out and the media can no longer inflate the statistics to induce panic, they will start coming out of hiding and regaining belief in their safety and our economy will rise again. When Americans start believing again and the world comes out of hiding, this recession will become a thing of the past.

2.      Winners Find a Way

“The joy is in creating, not maintaining.” -Vice Lombardi

When the going gets tough, the tough get going. When there doesn’t appear to be a path, winners create one. Winners walk not by sight, and in the face of fear they tremble not. They are winners for a reason.

Over the past several weeks we have seen many cases of winners finding a way. From many companies stepping up and redirecting production to include hospital equipment to numbers of volunteers and organizations pitching in to help ease the burden of the healthcare systems, Americans from far and wide have came together to fight this invisible enemy so often referred to as Covid19. Winners from every industry have found a way to be successful.

Businesses have adapted – with restaurants adjusting things to serve large numbers of take-out orders, many educational institutions directing coursework and teaching online, fitness classes being conducted virtually, and so many online businesses increasing their capabilities to fulfill the increased demand, our business owners are finding a way to be successful despite the current economic conditions. More than anything, they are exuding creativity, which is why many of them went into business for themselves in the first place. They didn’t like being plugged into the system. They didn’t like being told what to do or when to do it by a boss. They are creatives. Vince Lombardi once said “The joy is in creating, not maintaining.” He couldn’t have been more right. Joy is creating. And isn’t the pursuit of happiness, the pursuit of joy why we do what we do?

3.      Your Choices Determine Your Future

You are where you are in life based on the choices you have made leading up to this exact moment. Sure, you can pass the blame off to your upbringing or the government or circumstances, but at some point you will have to either come to the realization that you are a result of your choices or you will have to live enslaved to your circumstances, and who wants to do that?

They say you are born looking like your parents, but you will die looking like your choices. Where you were at when the recession hit was a result of your choices. Your job was your choice. Your income level was your choice. Your savings is your choice. The bills you have to pay – your choice. You get the point?

When the next recession hits, which it will, will you be ready? Will you be worried? Are you going to prepare today for what may come tomorrow or are you still flying by the seat of your pants? Robert Kiyosaki talks about wealth, and his definition of wealth isn’t the amount of money you make, but the amount of time that you could live at your current lifestyle if the money you make suddenly stopped coming in. How long would that be for you?

4.      Essentialism is Relative

Why is it that buying 99 cent tacos is essential but clothing is not? Who is to say that maintaining your fitness at a gym is less essential than buying a dozen donuts at midnight when this fresh donut sign is lit? What is essential to one person may not be essential to the next. Who is to say what is essential for you?

During this recession, I have realized that the term “essential” is relative. When the “epidemic” was sweeping the nation, everyone went out to stock up on supplies. The frozen pizzas, toilet paper, and microwaveable dinners were all gone but the shelves were still stocked with Vitamin C and health foods. Is your health a priority when you turn to living off frozen pizzas and hiding inside watching the tube? Who’s to say. What I do know is that in future economic recessions, owning and operating a business that is essential is essential if you want to be recession proof. If you rely on the market, stocks, bonds, mutual funds and IRA’s as your primary source of income, good luck. If you rely on a job, good luck. If you are relying on the insecurity of social security, good luck. If you are now stuck with 6 months’ worth of toilet paper and frozen pizzas, good luck.

5.      Happiness is Only Real When Shared

As Christopher McCandless, the man in Jon Krakauer’s Into The Wild who hiked across North America into the Alaskan wilderness in the early 1990s discovered in his last moments; happiness is only real when shared.

Social distancing has certainly emphasized this point to me. Happiness for everyone is different, but without someone to share it with it is obsolete. “But I can experience happiness alone. I do frequently.” Someone might argue. But do you really?

Take for example, the lone ranger who just bought a lottery ticket and is pulling a penny from his cup holder to see if it’s his lucky day. Sure, he could expect to experience happiness sitting alone in his car and scratching off the correct Powerball numbers. He just won 10 million dollars! Great. But is he happy that the numbers were right? No, he is happy because they equate to 10 million dollars. Is he happy that he will have 10 million dollars or is he excited about how he will spend it? Let’s say that he is excited that he will be getting a new house, new car, and be able to attract a suitable mate. Does the car really make him happy or is showing the car to his friends what really brings him joy? Is it the head-turning nature of the Ferrari he plans to buy what really motivates his decision, or does he genuinely appreciate Italian engineering or is there a deeper root to his motivation to purchase the red sports car? Happiness can exist in solitude, but it is only fruitful when it is shared.

It’s arguable, but I think that it stands true that quarantining yourself isn’t ideal, and certainly doesn’t invoke happiness. People are social creatures. They thrive in the pack, so to speak, and even the guy in his mom’s basement who is lost in his virtual reality battling dragons and elves finds a sense of joy out of the interactions with those online sharing in his fantasies. Happiness is like a seed, happiness shared is like a flower. Liken to a candle lighting a thousand other candles, happiness too can ignite a flame in others when it is shared, never decreasing, only increasing.

Happiness is only real when shared.