Reflecting on the Human Impact of Hard Times
John Berry
Penn State Extension
Wow! The past several months (seems like years some days) have been stressful in many farm communities. I’ve been around a while and do not remember economic/financial conditions such as these. As I drink my coffee in the morning and reflect on what is going on around me, thoughts center on not only the dollar effect of all this, but more significantly the human effect.
A topic causing me concern lately includes this:
We (everyone, no matter what our perception) exist surrounded by a global market situation. In this context, market conditions may have little to do with supply and demand. The world does not always operate as we wish. People can distort a market when they start to act as a herd.
Producer prices can then swing widely. Our global market is extremely sensitive to the whims and volatility of human emotions and our diverse sets of personal values.
Paraphrasing an article in a leading journal on economics, putting a U.S. tariff on cheap Chinese tires means cheap-to-consumer U.S. tires will now come from Brazil or India or Vietnam. It doesn’t stop the flow of trade on this category of merchandise. The flow simply moves to the next low-cost producer. We did something so we feel better. However, we likely did not actually change our situation. Similar things can happen whenever market intervention takes place.
Global stability may not be the best right now politically, socially or economically. Globally, nationally and locally many are experiencing a sense of well being less than we have been used to. Many families and family businesses were not fully prepared when these conditions started in earnest. Families and businesses are now caught in situations they were not equipped to deal with or that have become difficult to manage through.
A “family business” is often at a management disadvantage because of the tendency to intermingle and mix family and business decisions.
Market signals can be missed, misinterpreted and ignored due to this relationship. This relationship is often rewarding when a family business is enjoying sufficient revenues to allow the family to live and work as desired.
Yet, when revenues are not sufficient to live and work as desired, the business can draw resources of money, credit, time, energy and emotion in excess of family capacity to risk and/or provide. This is not rewarding.
Many long-term family businesses overflow with positive stories and great legacies that intertwine individual and family identity very closely with the identity and continuation of the business. In many cases this linked identity amplifies stress when business revenues are not covering business or personal expenses. Decisions, actions and results about family and work can be contentious in the best of times. Under new/additional stress this often escalates. Effective decision making then becomes more of a challenge. Family and business suffer together.
I try to follow the Golden Rule. I believe there is always hope. My family has experienced business conditions that we considered less than ideal for periods of time longer that we would have wished. We survived, grew and live to tell the story. We continue to be contributing members of society, but not in that business any longer.
Most individuals and families have extraordinary ability, skill and dedication. Many individuals and families contribute greatly to society no matter their method. In times of stress all must reach out to any number of the people and organizations in their community for support, counsel and assistance when they experience the need. We live and work together.
Challenges do exist, yet my optimism is not diminished.
John Berry is an agricultural marketing educator for Penn State Cooperative Extension. He is based in Lehigh County.
