Growth & Greed change to Neutrality & Need part 1

So- the economic pundits and politicians are not sure whether the depression is getting better or worse. But surely these guys should know - they're the experts.

Not so - their problem is that the models they use pay little regard to behavioural economics, prefering to focus on 'hard' data rather than 'soft' intuitive concepts. They also rely on inductive thinking, always looking at what happened last time to gain insights, rather than using deductive thinking, which is much harder, to predict what might happen.

But their biggest problem is that they've talked themselves into calling what's happening a recession, rather than it's true name ie. depression.

Depressions induce major structural and policy changes, recessions merely rely on a bit of 'trimming' round the margins of policy.

Depressions bring about a sea change in attitudes because personal values change and that's what's happening now.

It's a huge structural change in thinking that's taking place- Obama spotted it - that's why he used change as his signature during the election campaign for the White House.

The western world's value systems are changing from growth and greed to neutrality and need. Interim managers who are skilled in change management could help businesses and government adjust to this new order.

More on this later.....