Time for making your mind up

Feb 26 2010 by Bill Midgley, The Journal

WATCHING TV one morning last week I was intrigued by the interview of a so-called ‘sleep expert’.

I don’t know what qualification this so-called expert needs other than perhaps spending a lot of time in bed, although in my experience it’s rather a ‘getting out of bed’ expert that would be of more benefit.

By an odd association of ideas, the use of the word ‘expert’ brought my attention to the debate between those groups of economists who have problems making up their mind as to whether it’s the Government or the Opposition who have the solution to our economic problems. These economists consist of professors and those who teach the next generation of our bright young students who have much to contribute to the running of the country. It is perhaps alarming therefore that we have a large group of academics who cannot make up their mind on how we resolve the country’s financial problems. Perhaps not surprising given that the current Governor of the Bank of England, who, in his days in academia was also opposed to the then Chancellor of the Exchequer’s solution to the then economic problems, which subsequently proved to be successful!

We may complain that politicians find difficulty in coming up with solutions, but they often have to rely on these so-called experts, many of whom are paid for by the tax payers. But a further thought is that many of these individuals also act as advisors to a large part of major businesses in the country so the lesson may be to listen to all that is said, but as a chief executive rely on your own experience as being the most valuable. That is why chief executives are paid high salaries.

Certainly I do not claim to have any panacea for our economic ills other than that there are certain lessons in life and in business that we should remember. If your outgoings are greater than your income, unless you have reserves, you have to borrow. If you borrow, you have to have the means to repay. And in the current climate, and most importantly, you have to find someone from whom you can borrow without resorting to the lenders of last resort who will often demand a high and unacceptable price.

Too simplistic, perhaps, but what applies to us as individuals and companies also applies to Government. Whether to cut now or later is a decision to be made by whichever political party is in power after the next election given there is a decisive vote, but some older lessons in life should not be forgotten.

Bill Midgley is a North East business executive and former chairman of the British Chambers of Commerce.