How It Looks To You
by January 9, 2012 9:24 am 74 views
Fiscal years are important, whether they match the calendar or not.
They are important for goal-setting and for imposing deadlines, for making comparisons and for tracking trends. A new year is a new chance to do a better job of planning, even if customers never seem to get the memo about exactly when and how much they are supposed to buy.
A few weeks ago, Arkansas Business surveyed online readers about their projections for 2012, and while there are certainly exceptions, the big picture is this: The slow recovery will continue this year.
Respondents in general expect their companies to see improved sales. They expect to do some new hiring. They don’t expect to have to pay much more for labor.
These are just guesses, of course, but they are encouraging because they are being made by the people who know their own companies and their own industries best.
They are encouraging signs also because, as Arkansas Business readers know, business is as much about psychology as it is about numbers.
Sometimes more so, since numbers don’t seem to be as absolute as we’d like to think they are.
Last week, liberal economist Paul Krugman assured readers of The New York Times that the federal debt wasn’t nearly as serious as people think.
The very next day, conservative economist Bruce Bartlett warned readers of the same publication that the federal government’s debt is far worse than people think. Take your pick.
Believing in better economic conditions enough to take steps like hiring, buying equipment or expanding capacity can actually help create better economic conditions in the same way that fearing a downturn can contribute to economic stagnation.
So it’s good to see that the business community is cautiously optimistic and making plans to do the things that both reflect and contribute to economic growth. As 2012 begins, the economic growth that we are seeing — slow, anemic even — does seem to be genuine, organic expansion that is relatively bubble-free.
Let’s hold on to those good economic thoughts.