Uncertainty
There has been quite a lot of discussion about ‘uncertainty’ in the news lately. The debate is over whether or not it is having an affect on the current economic recovery (or lack there of).
Many on the politically left side of things say that uncertainty is not the culprit. It is lack of demand on the part of consumers. They say that uncertainty always exists, so can’t be the root cause.
Here’s my take:
In the game of life, businesses and consumers are supposed to be the players. Government is supposed to be the referee.
Businesses and individuals compete with each other in the buying and selling arena. Government makes and enforces the rules of fair play.
Anytime you step into the arena, there is uncertainty. Will the other side out compete me? Are they better at buying and selling than I am? Am I reading the market correctly and using my time and resources wisely?
You address this type of uncertainty by continually striving to make sure you are well informed and good at what you do. You do this by continually improving and adapting.
There is another kind of uncertainty in the arena: Will the ref be fair? Will he enforce the rules? Will he change them in the middle of the game? Has the other side paid him to throw the game? Is he biased in their favor?
How do you deal with such uncertainty? You can’t overcome it by being the best. That does not matter. You either have to stop playing the game or start putting your time and effort into making sure the ref is in your pocket instead of theirs.
The first type of uncertainty is part of the game. Every successful business or individual has become good at mastering it.
The second kind of uncertainty destroys the game.
It is this second kind of uncertainty that we need to get under control if we want to have a recovery. Democrats and Republicans can scream and point the blame finger at each other all day, but ultimately they are both guilty.
We need to make sure we have a reliable, unbiased referee, so we can get back to the game of life.
