I was listening to a Radio 4 programme earlier this week about Hyman Minsky and his economic theories. And, more interestingly how you can apply what is a very simple theory to the recent economic crisis.
In-fact, it’s so simple it could be written on a T-shirt: “Stability is destabilising”.
As a slightly more detailed analysis of it, but still very simple; economic instability is created during growth and prosperity when over-confidence kicks in, chances are taken with risky loans and overvalued assets that can’t realistically repay the loan should credit fail. And, depressingly unless we change what is causing this, ie human nature, this it would appear to be cyclical.
Economists however considered his theories sceptically and he passed away in the nineties still on the sidelines. Why?
To me his theories are so compelling and make so much basic common sense, that learning from them could surely help prevent future recessions.
But, is this the problem? In the world of economics where theories seem so complex were Minsky’s ideas just too simple to be credible for many? Is ‘simple’ simply just underrated!
And, what’s this got to do with temporary buildings?
In our industry temporary buildings are viewed with negative perceptions by some. And these are perceptions that are hard to crack and turn around. Why? I believe it’s because they are too simple and easy to be believed. Something that simple can’t actually work… Can it?
Yes, actually it can.
For us though the successful growth of our temporary building business lies heavily on referral documentation; endless proof from the horse’s mouth that they do work extremely well despite the ease and simplicity. As well as this a comprehensive sales process that removes the scepticism of the doubters at each stage.
The 21s century does seem a hugely complicated place to live with technology possibility being one of the main drivers, so is it any wonder we are suspicious of ‘simple’. Okay, doing everything on line is fast and convenient agreed, but how many passwords do we all now have? And then they need to be unique, remembered, stored safely, renewed and so on. To top it all when you want to speak to someone you’re asked for a different password that you have no idea ever actually existed, never mind what it is!
By making things happen faster we are also doing more and more activities simultaneously. Over-complicating by the sheer amount of ‘stuff’ being sorted, stored and recalled in our heads at any one time.
So when simple comes along do we naturally now view it with cynicism because we have forgotten what it is…
Like Minsky and temporary buildings let’s not forget that simple can and does work. It can help us slow down, asses situations fully from different perspectives, take an in-depth look at possible consequences and go on to create positive, easy and profitable results.
Read more about the simple pleasures of temporary buildings here!