I’m sure it’s one of the first times I’ve ever thought this, but right now I’m really glad I didn’t go into finance for a career. OK, that’s untrue, even though the money is good for them, I’ve always recognized that the lifestyle stinks. But holy moly, those guys (and gals) are probably not having a great time right now, even if they’ve socked away money before this month.
As any part-time pessimist would do in rough economic times, I’ve been thinking about work and how I could be affected by an extended recession. I’m not too worried that a possible economic downturn will have me out on the street tomorrow, but of course I wonder what might happen in the near- to mid-future. Furthermore, being the perpetual optimist, I am trying to see how a recession could be good not only for engineers, but also for engineers (and others) in Generation Y. So for now, forget about golden parachutes, let’s think about silver linings:
- Hard times — You know what people who were around in the depression era love talking about? Hard times. You know why? Because they made it, that’s why. So listen up! They weren’t handed jobs and houses and pre-packaged suburban Lego™-kit lives. They put up with some sucky times and earned a lot of what they got. Fast forward 80 years and you have Generation Y, the helicopter parent driven careers with high salaries and lower skill levels than many engineers leaving school 20 years ago. I’m not saying I’m not grateful for the opportunities I’ve had and the work I’ve been allowed to do, I’m just saying that a wake up call could help our generation in some subtle ways. Who knows, maybe in 80 years we’ll be the ones telling the young whippersnappers how good they have it.
- Weak dollar — I hear a good deal on NPR about how the credit crunch is the most worrisome aspect of a flailing economy and I agree it can really hurt companies if they do not have access to capital. Poor cash flow through one business can affect the next and the next and so on because companies are not capable of buying the products they need to get their job done. However, something a lot of economists are failing to mention is how the bailout and the economy in general is pushing the dollar to new all time lows. For engineers, with jobs being outsourced daily, this can be somewhat good. It has been cost effective to send manufacturing jobs overseas and even some design jobs, but that has been because of discrepancies in currency (no thanks to the Chinese government). If the value of the dollar drops off, it’s unlikely that textile mills will be popping up in Cleveland like they do in Malaysia or India. But maybe a few more manufacturing jobs will stick around. And maybe a manager or two will think twice about the equivalent cost of sending a design job overseas where they might have to spend some extra time fighting the language barrier.
- More start-ups — Somewhere along the way, bright young entrepreneurs who can’t get jobs at their local global conglomerate because of a hiring freeze end up saying “Hey, I can start a company! I’m already not making money, it wouldn’t be any different!” Don’t believe me? Google started in 1998. It flourished through the entire tech bubble mess. Yeah, there’s an example for you. Hard times, especially when it’s hard to get loans or credit, make the environment particularly well suited to software start-ups, where fixed costs (factory equipment, raw material, Swingline staplers) are much lower than they would be for a widget making facility.
- Repair — Some of the best lessons I’ve ever learned in electronics was trying to fix something that was already broken. I’m trying to fix a broken piano right now and it’s already been an enlightening experience. In the spirit of all things renewable, why not fix the gadgets we have instead of creating new ones we don’t need (“Oh look, this refrigerator has GPS!”). As the world goes more digital and parts get smaller, there’s less troubleshooting and more “throw out that board, put in a new one”. But even having younger engineers analyze failures on a system level can have a positive effect on their understanding of said systems.
I would love to tell you that everything is hunky dory and that the economy will have a continually positive growth rate forever. But seriously, that’s politicians’ jobs to lie about that. I’m just saying that in the event of a recession, people deal. I’m not planning on going all grapes of wrath and trying my hand at farming in the dust bowl, but I feel (perhaps overly) confident that I’m flexible enough to weather any economic storm brewing on the horizon. Do you think you are? Let me know in the comments.