These days, everyone has a perspective on the recession. Peggy Noonan, a writer who I admire for her straight talk, recently wrote about the psychological depression that has descended on this country, a collective gloom that's not likely to go away any time soon. She observes:

"The heart-pumping drama of last September is gone, replaced by the drip-drip-drip of pink slips, foreclosures and closed stores. We are tired. It doesn't feel like 1929. It feels like 1930." 

Someone on Twitter talked about how people are tired of hearing negative news day after day. It must be why the four-day rally on Wall Street last week was big news. And why that rally in turn was triggered by modest reports of pockets of business doing better than expected and selected metrics showing signs of improvement. We are grabbing onto anything that smacks of hope. Photo by buckle1535

Noonan goes on to make a point about the emotional state of life today:

"People sense something slipping away, a world receding, not only an economic one but a world of old structures, old ways and assumptions." 

She cites the rise in sales of guns, gold coins, and anti-depressants, as well as an uptick in church attendance and people surfing the Internet for things that will make them feel secure.

I have a different perspective from Noonan and I'm not alone. Yes, the old ways and structures are being erased from the post-crash landscape. And there are good things happening because of that. The upside to the recession as I see it:

• More innovation. 
  I believe in creative destruction, the idea that a tectonic shift like the one we are experiencing now is accompanied by innovation. Let me explain how this has unfolded for me. Photo by laffy4k

A down economy doesn't mean that there's less money for spending (Okay, so I did read that Americans lost 18% of their wealth in 2008. Cut me some slack as I try to make this next point.) It means that the money has shifted to new places. Look at the activity around figuring out how to get a piece of the stimulus money. As a small business owner, my charge is to reinvent myself to be relevant. Where is the pain now and how can I help? 

Now couple that with a tight feedback loop from the marketplace. If you listen carefully, your customers will tell you what they need now. In January, I wrote an article, titled, "Nine Networking Mistakes to Avoid" and put it in my ezine. The response was overwhelming, with people not only thanking me for the article but telling me they were sharing it with their friends, colleagues, clients, and staff.  As a result, I developed a new product, Networking Naturally, a series of four teleseminars, to help individuals improve their ROI on networking. (Whether people view this new product as an innovation remains to be seen. I think I've come up with a new take on solving an old problem. Certainly, I feel that I've had to innovate to be relevant.)

• Remarkable stands out from the mediocre. In a down economy, the people who could sell ice to Eskimos will be the ones left standing. The companies that fill a gap in the market perfectly, with the right solution at the right price point, will see their revenues grow. The products that are so compelling that they define a new market and become a must have (think iPhone) will be profitable.

A corollary to this is that the individuals and companies which don't have a good fit in the marketplace will disappear or turn their assets to something that is a better fit (exception: the growing number of companies falling under a federal bailout program.) In a booming economy, businesses and individuals can hang out for a lot
longer before the marketplace gives a clear signal that the person or
the company isn't filling a need.  A coaching
colleague of mine told me the story of when she first started her
coaching business. Being the mother of a young child, she thought her
niche was life coaching for mothers. She did everything a small
business owner should do in terms of marketing and sales–for two
years–before she discovered her real niche, coaching business leaders. A CEO of a company heard her on a radio show, called her and became a
client. That led to more clients in the business arena. She hasn't looked back since.

Seth Godin articulates the idea of being remarkable as well as my next point, on businesses being better run in a down economy. My thanks to the site, InSocialMedia.com for
bringing the video to my attention:

      

• Less waste, smarter businesses. When I only have so much, I have to make wise choices. I must be focused on making every dollar count. I can't afford to scatter my money across many things. Last year, I had recurring monthly charges for services I rarely used as well as services that I mistakenly signed up for twice. I spent money in places that provided little value. I won't be making that mistake again.  By the same token, businesses are more atuned to how they add value, by impacting the bottom line. Companies are focusing their efforts where they can add the highest value and letting go of the rest (think GM closing down Hummer line.) (My thanks to @chrisgarrett for pointing me to this last link.)
• 
  Less complacency. 
  Whether you are unemployed, fully employed, own a small business or run a big company, no one is taking anything for granted. We are hustling for every opportunity. No one is too busy, too wealthy or too arrogant to pay attention to what's going on in the economy.  I've noticed that service is better, from a hostess happy to see me when I enter a restaurant to attentive service at the local hardware store to receiving a call from a bank manager where I keep my business account, thanking me for my patronage. A couple of years ago, I offered to donate items for the annual silent auction that benefits my sons' school. I never heard back. This year, the chief fundraiser reached out to me two months in advance, specifically asking if I'd like to donate. Companies that used to dismiss the buying power of women are now courting the female audience. (My thanks to @kenherron for bringing this last example to my attention.) Last year, I barely did any business development for my coaching and consulting business, and I had my best year ever. This month alone, I'm attending three in-person networking events, creating new products, and helping to plan a business panel for my college alumni group.  None of this would have happened without the recession. Photo by Seattle Municipal Archives
• More incentive and time to connect.  This takes on different forms–getting together for coffee, writing an email or a LinkedIn invitation, attending networking events, following others on Twitter.  High school and college classmates who I haven't heard from in decades have friended me on Facebook. As the economic climate has gotten harsher, people are turning to old and new friends alike, with questions like, "How are you faring?" and "What are you doing differently?" Over the last three months, I've noticed more people approaching me with "let's catch up" requests.
• 
  Getting back to the basics. True, some people are feeling that they can't afford more than the basics. But what I'm sensing is not resentment but rather relief.  Conspicuous consumption is out. It's in poor taste these days to even think about keeping up with the Joneses. The simple things have a new shine to them. Can we be just as happy, nay even happier, with a home-cooked meal than a four-course dinner at a chic new restaurant?  Okay, I may be stretching a bit. My point is that we have moved onto another track that can be just as satisfying as the old track and a lot more meaningful. Photo by Ella's Dad
• Increased gratitude. Decreased entitlement. Since the crash last fall, I have reminded myself how lucky I am to have my health, a wonderful family, work that I love and control over my own destiny. I also feel blessed to have the material things that I do–a reliable car, a place to live that I enjoy, and enough clothes in my closet that if I lost a few pieces, I wouldn't notice. A WSJ article even cites a "a growing "noncomplaining" movement that touts the belief that whining doesn't work as a strategy, and that happiness can be found through rituals such as writing in "gratitude journals.""

The perspectives laden with anxiety, fear, and discouragement are still valid. It is what people are feeling. However, we don't need to only choose from the darkness that so many people are dishing out. We can choose to see the gifts sprouting from our current circumstances.  A close friend calls this realistic optimism–seeing difficult situations for what they are and by focusing on what is good and true, you can find a way out.

Shaken out of my comfortable stupor, encouraged to connect with others and my values, challenged to be smarter, more creative, and attentive to what really matters, call me a realistic optimist.

In addition to finding me on this blog, you can get my daily thoughts on what's happening in the world by following me on Twitter. My user name is carolross.