The dominant story of the past few weeks has been the unprecedented swings in the stock market. Economies and governments across the globe are increasingly unstable, while in America a polarized Congress is gridlocked and largely ineffectual. Why is this happening? And why now?
Politicians’ finger pointing aside, there are no simple answers and no single culprits. Though some see society as crumbling, we believe it is entering a period of accelerating change and disequilibrium with many factors contributing. New technologies have not only ushered in the emergence of a truly global economy, but have also intensified volatility in financial markets. The “Arab Spring” has shown that new technologies like social media are disruptive in all senses of the word.
So how is a person supposed to cope with these wild swings? (At this point I think we’ve all figured out that tranquilizers and seatbelts aren’t going to be enough.) People are worried and perplexed. Relatively minor news items cause massive rallies and sell-offs in the markets. Many investors and executives are waiting on the sidelines, holding huge amounts of cash and gold, waiting for balance and predictability to return.
This is the time for leaders in business and politics to step up. Even in “normal” times, one of their most important jobs is to create a compelling narrative that explains what’s happening and describes where we’re going and how best to get there. It’s critical that this message not only makes sense but also resonates with people emotionally. Amid the blaming and angst, there’s precious little of this going on.
A new narrative is desperately needed to restore balance and calm. From this narrative, new economic and political paradigms can emerge. Einstein said: “We cannot solve our problems with the same thinking we used when we created them.” New thinking is required for this new narrative. Anyone for new thinking? Anyone for New Actions?
