American Ingenuity - Lose Your Job, Keep Your Car and Suit

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American Ingenuity


There's no doubting the real existence of this recession, but perception and fear are playing important roles that have compounded economic strife. While the federal government can take action against tangible drivers, it has also recently made strides toward improving the sentiment of the citizenry. The private sector also has great incentive to do so, and marketing ingenuity is working toward countering consumer fears with wonderful new ideas. In the end, this special characteristic of our great nation of opportunity, "American Ingenuity," will go a long way toward restoring us.

(Related Tickers: NYSE: GM, NYSE: F, OTC: HYMLF.PK, Nasdaq: JOSB, NYSE: MW, Nasdaq: LAMR, DIA, SPY, SDS, DOG, QLD, QQQQ, TM, HMC)

Marketing Ingenuity

Ford took the initiative this week, issuing its press release initiating a new consumer protection program. Basically, Ford (NYSE: F) promises to make your car payment for up to a year if you lose your job after the purchase of a new Ford, Lincoln or Mercury vehicle. The wonderful offer is valid until June 1st, and General Motors (NYSE: GM) countered with a new program of its own. (Study the fine print please)

Ford's step follows a program initiated by Hyundai Motors (OTC: HYMLF.PK), through which it offers new car buyers the opportunity to return their vehicle if they lose their job. However, Hyundai did not start this craze of a marketing scheme. Jos. A. Banks Clothiers (Nasdaq: JOSB) recently offered any new suit purchaser the opportunity to keep that suit free of charge if they later lose their job. Again, we ask you to read the details...

Where is all this leading us? If I knew I was going to lose my job, I would not go out and buy a car and a suit? No way! Everybody knows the devil is in the details, and if I knew it was going to happen, it would seem too risky even with the incentive. Still, this offer might convince those on the fringe, who may be holding back on a planned purchase due to a perhaps unwarranted fear of being laid off.

And there you have it...

The efficient American marketplace has adjusted to the portion of decreased consumption that has been driven by fear. Friday's unemployment report will show that the ranks of the jobless are nearing 9%. Looking at the glass half full, that means 91% of you are still gainfully employed. "But Greek," you exclaim, "you keep reminding us of all the folks working part-time who would rather be working full-time, and all the full-time bloggers living on fumes and fantasy..." Okay, so if we count all the part-timers in the mix, that gets us up to near a 14% less-than-fully-employed rate; including the bloggers and ex-investment bankers putting their hard-earned money toward wine and cigar shops and small-time production companies, many of which will fail, well then maybe we're up to 17%. That still means 86% or 83% of you are working real jobs full time. I lean toward the higher number, because you would think a lot of those ex-Wall Street guys have good enough business sense to turn a profit sooner rather than later.

My point is that while a good portion of our nation's lost spending has surely resulted from unemployment, an also important portion of it has come as the result of fear. American consumers reigned in their spending as they heard about friends, relatives and even colleagues getting canned. So, marketers, the ranks of which are made up of creative types who find ways to make you buy things you don't really need, or choose their product over those of competitors, have finally had a "by George" moment... and I think they got it...

Marketing, or rather, American ingenuity like this will go a long way toward restoring economic growth to our economy before it might otherwise have occurred. Now that the Obama Administration gets it too, and the Treasury Secretary and Federal Reserve Chairman are taking a minute or two for thought before action, it seems things are looking up. So, while we may be extremely talented at devising swindling schemes and exotic security traps, that same creative talent is widespread enough to lead us out of this mess. Lesson learned, never discount American ingenuity.


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