Comments on: The Recovery Will Come From Those That Have Been Laid Off

By: The Personal Finance Playbook

The Personal Finance Playbook — Tue, 17 Mar 2009 15:45:03 +0000

I agree completely. The job shortage forces people to innovate in order to find ways to make a living. That’s the strength of capitalism.

By: RB @ recessionsblow

RB @ recessionsblow — Mon, 16 Mar 2009 19:44:47 +0000

This is so true. I’ve recently been searching for some new ways to earn some extra cash, such as starting my blog, because my company cut everyone’s pay. Necessity is the mother of invention!

By: bill mccollam

bill mccollam — Sun, 15 Mar 2009 14:43:16 +0000

I take the point about innovation springing from desperation – but I worry about the other ingredients necessary for a recovery. Along with ingenuity and human resources – we also need capital. And the capital market’s tolerance of risk right now is at a low. Good ideas and good people are great – but they also need help.

By: DDFD at DivorcedDadFrugalDad

DDFD at DivorcedDadFrugalDad — Sun, 15 Mar 2009 04:58:11 +0000

This post is right on the money! I am a big believer in self-sufficiency and creating your own bailout using defensive entrepreneurship.

Defensive Entrepreneurship is starting a business or businesses as a hedge against job loss or other financial setback.

These “spare time” ventures are usually conducted at night (”moonlighting”) or on weekends. They are sideline businesses that provide extra cash in good times that supplements your full time gig. However, they can provide stop gap help in tight spots in the event of a job loss. This happened to me a few years ago– I had a sideline business that I did full time as I looked for a new job after a layoff.

By: Keith

Keith — Sat, 14 Mar 2009 17:18:44 +0000

To KC:
I disagree with using local retailers simply because they are local. If they provide a better service or product than the national chains, then you should use them. Its up to the consumer to be aware of all their options, local and national, and then make the decision that best suits them.
For example, when I first moved to Tucson I rented movies from a national chain that was close to my house. But when I wanted an older movie, the national chain didn’t have it. I found a locally owned video store that was only a few blocks further, which not only had the old movie I wanted but had every old movie I could possibly want to watch. And they had plenty of new releases. Finally they rented movies at a cheaper rate for a shorter time ($3.50 for 3 days rather than $6 for a week). That was exactly what I needed in a video store and I never went back to the national chain.

It is up to the local retailers to provide services and products that people want and will pay for.

By: Max

Max — Sat, 14 Mar 2009 02:38:55 +0000

Dana, what would those sustainable industries be? I and many other engineers, programmers, architects, accountants, etc already have education and experience, but US corporations would rather bring in foreign workers on H1-B visas and pay them far less. It’s one thing to outsource, but to actually bring the foreign workforce here is detrimental to our economy and welfare.

By: Dana

Dana — Fri, 13 Mar 2009 16:07:14 +0000

I agree, the unemployment reflects the structural adjustment going on in the economy. Perhaps some of these laid off workers can now get training in industries that are more sustainable and create real value economy going forward. That will ensure the foundation behind the employment numbers and future asset appreciation are based on real growth, and not the debt-induced bubble we’ve seen the past decade.

By: KC

KC — Fri, 13 Mar 2009 14:32:17 +0000

And thats even more reason to support your local economy. Go out to a restaurant that just opened (not a chain). Or hit a local store instead of a big box retailer. We’re doing pretty well in this economy and I’m making it a point to spend more money than I normally would, but I’m spending it locally with local businesses and small owners.

By: Neal Frankle

Neal Frankle — Fri, 13 Mar 2009 13:59:54 +0000

When its dark out there, we think the darkness will last forever. But it doesn’t. Thanks for reminding us all.

By: TaxRascal

TaxRascal — Fri, 13 Mar 2009 13:47:57 +0000

Absolutely right! I read recently that for many industries, starting a new company is about as expensive as being unemployed — so lots of people will try it.