Friday, July 10, 2009

Making Product

I think when most of us hear the word “stimulus,” we think of jump-starting the economy by getting the productive sectors producing, spending, and employing. But when the administration talks about the “success” of the stimulus package, they say things like:

The president also touted his programs that have allowed states to halt firings of teachers, police officers and firefighters.


Those are the jobs we saved? Doesn’t he see the obvious problem with this?

But then an investor arrives and says he’ll dump $10 million into your business. What do you spend it on? What’s the best way to get the company humming along?

And specifically: whose jobs do you save first until things get going again?

I think the answer is obvious, and it certainly doesn’t involve saving the training people (= teachers) and the security guards (= police officers) at the expense of the people who are actually making the product.