All in it together? Sort of...
Business is a contact sport. Entrepreneurs, executives, and consumers accept that in free markets there are always winners and losers. Markets are the testing grounds for new and old business strategies, value propositions, and the business models that deliver them. These continuing experiments have showered consumers with buffets of choices, benefits, and affordable prices.
Governments’ reactions to COVID disrupted this beneficial sport by effectively changing the rules and picking winners and losers. Their policies stopped countless businesses in their tracks while pumping billions into others. In this context, businesses that benefitted and survived, and those that were bankrupted were NOT ‘in it together.’ Government employees with secured jobs are not ‘in it together’ with private sector employees losing theirs.
We have shared interests in limiting Coronavirus’ damage, but the social and economic tradeoffs vary widely. The interests between those secured in their jobs and profits, and those at risk of losing everything are quickly diverging. I see it every day while applying our recovery framework. ‘We are all in it together’ is starting to sound like a worn bumper-sticker. I will share more of our findings in my next post.