Dan Kennedy told me the word “recession” is an over-broad generalization that hides how much money is still being spent. Politicians and the media both profit from selling crisis, so the numbers rarely match the headlines. A school owner’s job is to manage his own thinking first, then become the one balanced voice his students and parents hear.
Key Takeaways
- Over the recent Memorial Day weekend there was only a 1% reduction in people driving 50 miles or farther from home, according to AAA.
- Commercial real estate transactions increased during 2007 compared to 2006 and were on pace to grow again in 2008.
- There were more new investments in significant developments in and around Cleveland than during the past seven years.
- Candidates, parties and independent groups were on track to spend well over a billion dollars in the election year, most of it aimed at convincing voters we are in crisis.
- The media give an unbalanced emphasis to bad news, so you have to seek out fuller information yourself.
- Kennedy tells school owners to be a “good news merchant” for students and parents, because that lone voice of reason can be very magnetic.
About This Interview
This is a brief excerpt of my in-depth interview with Dan Kennedy. You can read the entire interview and participate in a live call, with Dan Kennedy and me, on July 15. Visit NAPMA.com/DanKennedy to register.
The Economy Versus What People Actually Do
Stephen Oliver: Let’s start with the so-called elephant in the room: the economy and the dreaded “R” word. People do seem troubled by gas and grocery prices. What’s your take on it all?
Dan Kennedy: First, you always have to temper what people say with objective reality. For example, if you listened to all the wailing about gas prices, you’d presume everyone’s cars were up on blocks, and people were huddled in their homes. During the recent Memorial Day weekend, however, there was only a 1% reduction in people driving 50 miles or farther from home, according to AAA.
No doubt, there are segments of the population adversely affected by this very specific inflation of gas and groceries. In big-ticket spending, slow-to-adapt companies have been whacked by the inevitable: consumers hitting the wall, using appreciating home equity as an ATM.
Where the Money Is Still Moving
Even more telling, commercial real estate transactions increased during 2007, as compared to 2006, and are apace to grow again in 2008. There are more new investments in significant developments in and around the city of Cleveland than during the past seven years. In short, using the word, “recession,” is a big, fat, over-broad and over-simplified generalization. There are plenty of consumers, investors and business owners spending money. Further, there’s no profit in buying into this concept of a giant black cloud of doom over the entire land. Every business owner must constantly be asking himself or herself “Where’s the PROFIT in that?” – with regard to his or her thinking, analysis and actions.
Everyone Is Selling Crisis
Dan Kennedy: This is a presidential election year, during which more than a half-billion dollars has been spent. Candidates, parties, and independent groups called 527-c’s will spend another billion dollars, most of it aimed at convincing voters that we are in crisis. One side cries, “Crisis and change.” The other side threatens, “Crisis requires steady, experienced hand.” Everyone’s selling crisis.
Media Bias and Where to Find Balance
There is also a profound media bias, even what I call “media mental illness,” an unbalanced emphasis on reporting bad news, and ignoring good news. On CNN, you find good economic news only in the little type crawl across the bottom of the screen. You have to go to Fox Financial News, CNBC or The Wall Street Journal for a fully balanced presentation; and, of course, most people don’t. The gloom ‘n’ doom sales machine is cranked to high.
Manage Your Own Thinking First
To quote one of the success authorities I studied, Earl Nightingale, “We become what we think about most.” If you DON’T actually MANAGE your thinking about the economy…if you let yourself accept the mainstream media and politicians’ selling of crisis, if you think about it, regurgitate it in conversation with others…then you’ll undoubtedly find yourself upside down in it.
Become the Good News Merchant for Your Parents
It’s up to you to seek better, more complete information; and, incidentally, provide that same information to your customers, insert “parents” in place of “customers,” if appropriate. You’d better be what I call a “good news merchant,” influencing your students and parents’ thinking about this – yours may very well be the only such voice they hear, and being that lone voice of reason and encouragement can be very magnetic.
Receive the rest of this interview free and listen in to this month’s teleconference by registering at NAPMA.com/DanKennedy
Frequently Asked Questions
Should I cut my marketing when the news says a recession is coming?
Kennedy’s point is that the headlines and the actual spending data often disagree, and that there are plenty of consumers, investors and business owners still spending money. He asks every business owner to test their own thinking with one question: where’s the profit in that?
What evidence did Dan Kennedy give that the economy was better than reported?
He cited AAA data showing only a 1% reduction in people driving 50 miles or farther from home over Memorial Day weekend, commercial real estate transactions rising in 2007 over 2006 and on pace to rise again in 2008, and more new development investment in and around Cleveland than in the past seven years.
Why does he say everyone is selling crisis?
It was a presidential election year with more than a half-billion dollars already spent and another billion expected from candidates, parties and independent groups, most of it aimed at convincing voters we are in crisis. On top of that, he describes a media bias toward reporting bad news and ignoring good news.
What is a “good news merchant” and why should a school owner be one?
It means seeking out better, more complete information and passing it along to your students and parents. Yours may be the only balanced voice they hear, and Kennedy says being that lone voice of reason and encouragement can be very magnetic.
