Sunday, October 12, 2008

Return of the plodder

The financial catastrophe that is engulfing us will benefit me (and perhaps the world) in some ways. 

For one, it brings back into focus the value of 'real' things. Real assets vs. ephemeral paper profits, 'real' work vs. jugglery on an excel sheet, 'real' hard work vs. quick and easy money in a few blockbuster years. Think of it, my parents' generation worked long and hard years to achieve something in life. They were loyal to their employers, sincere in their work and willing to postpone immediate gratification for the benefit of their children. They had character. What makes me deserving of much more pelf than they did at my age? Certainly not maturity, not character and not ability. 

For another, it will mark the return of sanity to huge discrepancies in compensation. What does a financial services employee do that is so important and unique that she gets paid 100x the normal Jane in equally (perhaps more) important functions like teaching, administration or manufacturing? Other than spending 23 hours a day, 6 days a week in office? In my humble opinion, not much. A bubble which was assuming gigantic proportions has been pricked. 

Unfortunate that in the next few years a lot of people will pay for the mistakes of a few. People on the verge of retirement who are seeing their investments become worthless, ordinary taxpayers who will face higher tax regimes, ordinary producers who will see consumption drop, and ordinary consumers who will see inability to get leverage. But it will bring back into focus the basics that our parents taught us - save for a rainy day, work hard and do not worry about the fruit of your labour, live within your means. It will build 'real' character, not dollar filled notions of self worth.

It will bring back into focus the worth of the plodder. I look forward to learning my lessons!

1 comment:

gayatri said...

Sometime in the 1980s, one American bank (in response to Citi's aggressive campgains) had the following TV ad where an old bearded man in a traditional business suit said the following," We earn our money the old-fashioned way - the hard way."