Self-Reliance in a Depressed Economy. According to
Business Dictionary, Economic Depression is a state of the economy resulting
from an extended period of negative economic activity as measured by GDP. It is
often described as a more severe form of a recession that leads to extended
unemployment, a spike in credit defaults, broad declines in income and
production, currency devaluation and a deflationary economy.
An economic
depression is a severe downturn that could last several years. Fortunately, but
usefully, the U.S. economy experienced a Great Depression in 1929, which lasted
ten years. Judging by the above definition, Nigeria is experienced economic
depression 2016-2018 since her first and second quarter’s growth in 2016 are
0.36% - 1.5% up until late 2017.
Yet, According
to the International Monetary Fund (IMF)
projections in April 14, 2020, Nigeria is heading to a recession, its worst
recession in three decades, as it expects the nation’s economy to recede by
3.4% in 2020
Causes of Depression in Nigeria Economy.
1. Pandemic (Covid 19)
2. Poor
economic planning (e.g Vision 2020)
3. High
inflation rate 12.34%.
4. High interest
rate – 12.5%
5. High
taxation
6. Policy
conflict/contractions.
Effects of Depression.
1. Increase
in the national unemployment rate to 33.5%
2. A spike
in credit default
3. Broad
declines in income and production.
4. Increase
in currency exchange rates.
N500 to 1$
5. Increase in
crime rate
6. Fear of poverty.
The fear of poverty is no doubt, the
most destructive of the any effect of economic depression. This fear paralysis
the faculty of reason, destroys the faculty of imagination, kills off
self-reliance, undermines enthusiasms, discourage initiative, lead to uncertainty
of purpose, encourage procrastination, and make self-control an impossibility.
It takes
charm from ones personality, destroys the possibility of accurate thinking,
diverts concentration of effort, it masters persistence, turns the willpower
into nothingness, destroys ambition, becloud the memory and invites failure in
every conceivable form; it kills love and assassinates the finer emotions of
the heart, discourages friendship and invites disaster in a hundred forms,
leads to sleeplessness, misery and unhappiness.
The fear of
poverty has been placed at the head of the list because it is the most
difficult to master.
The fear of
poverty occasioned by economic depression has caused a woman in Ilesha, Ondo
State Nigeria, to exchanged one of her children for a basket of gari (cassava
powder) in the most tragic manner, June 8, 2016. Let’s look at the solution
which is the main point of this blog.
Structuring RadicalSelf-Reliance and a New Form of Prosperity
Our problems
have grown so enormous that “the system will not reform itself” and that change
will be forced on us by circumstances rather than engineered into existence by
popular choice.
Below, I outlines what we need to do as
individuals in order to live prosperous lives and to lead the nation into a
world with a very different set of parameters than what we’ve known in the
past.
I makes
reference to what you make calls 'The Remnant', the very small percentage of
the population who see the changes coming and who adjust strategy and tactics
consistent with the new reality. It is that small group—no more than 4% of the
population—who will emerge and lead a reluctant population into world which has
great potential to be better than any we’ve known to date.
I recommends
“radical self-reliance”—accepting the end of the Savior State and taking
personal responsibility for your own SUCCESS, health, livelihood, education,
energy, food, retirement and pursuit of happiness”, I trust, believe and
promoting the following solutions:
1. Turn off your TV (and its myriad
influences) strike a vision & start planning
2. Develop multiple income sources; have
a backup skill, trade or income source
3. Diversify, counterbalance and be
flexible and opportunistic with investments (“when gasoline is cheap, buy a
futures contract”) – no single investment vehicle will work in all environments
4. There is no security, always have a
Plan B
5. Think of E-commerce/technology
6. Adopt a radical savings strategy
7. Lead a “low cost/low debt lifestyle”
which will afford the ability to be flexible and mobile as circumstances
require
8. Cultivate close ties with community
and network sources for both business and social interaction.
9. Develop financial intelligent
10. Heel catcher. ‘Heel catcher’ is a
term of endearment which also came to define Jacob’s life. Jacob in the Bible grasped
at all he could to get ahead, to feel secure, to feel competent, and to make it
in life. To be a heel catcher particularly meant to get ahead by doing
everything within a legal framework.
In perhaps the strangest story of the Bible,
Jacob wrestled all night with God, and, in the end, Jacob was blessed for being
Jacob.
I love the
story of Jacob. I see myself in so many aspects of his life. He is a goal
getter, a game changer, and a man who aspires and achieved whatever he desire.
If Jacob live in this age of reason or space age, he did be Mark Zuckerberg.
Summary:
Economic
crises was unnecessary evil that made people wake up to the realization that
their sources of livelihood (job) was at risk.
The
Bible says, “And Isaac sowed in that land (during
Economic Depression) and reaped in the same year a hundredfold…..” – Genesis
26:12
As
a business this is an opportunity for you to create better products and better
processes. Because when times are bad is
when the real entrepreneurs emerge. Entrepreneurs don’t really care if the
market’s up or down. They’re creating better products and better processes.
In
a related development
When times are bad is
when the real employees emerge. A smart employees don’t really care if the
market’s up or down. They do their job anyway.
