Thursday, December 13, 2012

The Financial Barometer

My friend John, now departed, was once a leading finance man, with a large downtown accounting firm in his own name, occupying a whole one-block-square floor (plus a little) in a prestigious block of a strong city.  One day over coffee, John was reading want-ads, looking at the employment section.

I raised a question:  "John, are you looking for a job?  Tired of retirement already? (with a laugh!)"

"No," he said, "Just doing investment research of the most fundamental kind.  If a company is hiring workers, that means it is healthy.  While published reports might or might not be truthful, no shrinking business hires anybody.  So, this is how I evaluate my investments."

I'm sure not an expert, but that research made John substantial amounts of money.  We've lost sight of that basic, particularly in Congress, these days.  John understood that "job creators", to use a broad and often undefined term from the last election, are actually the sales force!  Sales managers create production jobs by selling the product!  If the firm is selling, they are buying new labor!  If they are laying off, it is not because they are heartless, it's because sales are shrinking.  John recognized the barometer!

I never met a business executive who was passionately eager to hire more and more people, and looked for excuses to do so.  Every one I ever met was eager to increase the bottom line by efficiency, and profits, that NEEDED more help to keep going!

Maybe we need to write a congressman and suggest THEY actually consult with successful managers (a friend suggested WalMart executives, for a starter), instead of yet another layer of political speech-writers.  Might even make for better conversation for everyone.  Might even help folks SOLVE our nation's problems, whether they ever found someone to blame or not!

If you want, Google can even help you find your representative's address, if you're so inclined.  After all, someone has to do it.

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