Category: Economy

Well, the market is nearly reaching highs again. Surely the recession fears over the past months were unfounded. But, wait. What’s this?

“The stock market isn’t the economy. The economy is production and jobs, and there are shortfalls in virtually every sector of the economy,” Yellen said in an interview with The Washington Post.

Yellen… Yellen… oh, Janet Yellen, former Fed Chair. Yeah, she may be on to something.

So, where fiscally policy from Washington May be a while coming, there are those still suffering in this country. And where wealth may be accruing for those with substantial stock portfolios, the nearly 30 million people out of work (predominant low-wage workers) will just have to stick it out.

Early in the pandemic, shortly after Congress approved trillions of dollars in aid for individuals and businesses suffering from job losses and decreased revenue, companies such as Shake Shack and Ruth’s Chris Steak House received millions under the Paycheck Protection Program. Of course, they were instantly lambasted, given the size of their organizations.

However, the purpose of any corporation is to increase value to stakeholders. Under that very broad understanding of the purpose – to make money – it would be counterintuitive to not apply for that additional revenue. 

This is an issue that is seen, again and again, currently playing out on Facebook, in Disneyland, and likely the nation.

Facebook has the choice of whether to do more to curb hate speech or to keep a more hands-off approach in the hopes of driving more revenue. Now that advertisers such as Starbucks are pulling out of Facebook (and other social media), the loss-of-revenue could become a very real driver for organizational change.

Similarly, Disney is pushing to reopen its parks here in the US. Now, we are arguably facing more of a health crisis now with spiking numbers than when we initially started shutting down back in March. Because, now, there’s little to no talk about shutting down again.

The company is dedicated to increasing revenue. If everyone else is open, why would a company self-censure itself? That could mean losses of revenue. Yet employees in Disneyland are striking against the reopening over health concerns. 

While there are businesses out there who will do the right thing at the cost of losing business, there are others who will do the accepted thing in the hopes of earning revenue. Sometimes, it’s expensive to do the right thing.

Balance. We seek balance in creativity so that, in what we are offering to the world, it is worth someone’s time to consume and provides value to us as well.

Occasionally, rarely even, the value of something created far surpasses what the price is set to. Usually, it’s fairly-priced or may be slanted in favor of the seller. (This is evident in the increasing corporate profits we see.)

But I am specifically addressing creative endeavors. Nearly all work begins as a creative endeavor. From the fast-food restaurant to the newest computer, everything begins its life as an idea.

Basic economic market theory tells us that laws of supply and demand will set the prices for these goods and services. The problem is that the creative mind will feel the pressures of creation. The questions of “is it good enough?” or “can I do it again?” will inevitably arise.

Success feels great, but failure is much more common. Seeking balance is an exercise in feeling valued yourself. Not overvalued, or undervalued. But fairly valued.