Did you see CNBC’s Rick Santelli on the floor of the Chicago Stock Exchange last week as the stock market numbers continued to dive downward with his now famous “Chicago Tea Party” rant?

This was an instant classic that I may put in the same category as Peter Finch in the movie classic, Network, with Finch’s famous, “I’m Not Going To Take It Any More” speech. 

The actions of the government can always teach us business lessons.  Let’s do a quick overview of the economic bailout and stimulus package.

It started last fall with the economic collapse of the banking system and the stock market numbers tumbling down.  Suddenly the economy was in chaos.  Consumer spending was down at Christmas.  In January, retailers began shutting their doors or offering sales of 50-75% off just to move the merchandise even at a loss.  Small businesses can’t get credit and are challenged to keep their heads above water to survive.  Corporations are laying off thousands of employees.  Residential real estate continues its devalued spiral.  And shopping malls have lots of vacancies.

The government moves to save the economy with TARP and the first bailout bill in October.  Only the funds never end up where they were intended and the economy remains stagnant and continues to deteriorate.  People live in panic and fear rather than the hope which the new administration promised during the presidential campaign.  “Change” was also promised but so far all we’ve seen is more of the same from our Nation’s Capitol with promises already broken and a country divided not united.  A second bailout or stimulus bill is passed but it’s really a spending bill filled with social programs and “pork” rather than items to get the economy moving again.  Nor does it help small business much.  And the stimulus that is in the bill won’t happen over night or even necessarily in the next year, so how does that re-energize such a bruised economy?  And don’t forget the other bailouts for the banks, the auto industry and all the mortgage foreclosures.  That’s a lot of money the government is throwing around and hoping something will work, something will stick and be effective even though the experts all admit they really don’t know what, if anything, will help the economy due to all the variable “what ifs”.  Meantime, the government has created massive debt, billions and trillions, and is getting bigger and bigger. 

Now I realize the economy is an enormous wheel to turn around and to get going in the right direction again.  It will take time. 

But there are some business lessons here for business people…

• 1) Don’t throw money around you don’t have – especially if you are throwing money at things in your business but nothing is being effective or bringing results. You are wasting your money. Don’t guess about where your money goes in your business. Make sure you are getting a return on your investment (ROI).  In general, don’t keep doing something that doesn’t work; find another solution that will work.
• 2) Keep promises to your customers. Stand behind your products. Always be truthful to your customers. Build customer relationships built on trust. Listen to your customers.
• 3) Same with your employees – keep your promises.  Be truthful. Build relationships on trust and respect.  Listen to your employees.
• 4) Have business goals but work within realistic time lines and time frames. Don’t leave things open-ended. Review and evaluate. And re-evaluate.
• 5) Don’t depend on the government. Once you depend on the government, they are in control rather than you being fully in control. If you wait for the government, in this economy, nothing may ever happen. You can’t afford to do that with your business.

There is only one saving grace here.  I have confidence in you, the business person, to pull this country out of recession.  I know you refuse to be beaten.  I know you are mentally tough.  I know you are working smarter in order to be more productive. 

I know you believe in hard work.  So do I.  In fact, that’s all I know.  My father instilled the hard work concept in me.  He was a truck driver for a grocery chain when I was growing up in Pittsburgh.  He was out the door at 5 AM every morning to go to work.  On the side, he had a moving business which he worked on weekends so he could feed the family and give us a decent life.   

You’ll do more to save our economy than any legislation the lawmakers are coming up with thus far.  Government doesn’t create jobs.  CEOs, company presidents and business owners create jobs. 

Many financial experts and economists believe government is actually getting in the way of recovery.  This economy will begin to turn around and recover through the independent, creative thinkers that emerge through entrepreneurial and family run businesses. People that place the responsibility upon themselves rather than the government in their personal lives and their businesses.

We, the business people, need not depend on government but depend on what we have always depended on, ourselves.

PS: If you have any business lessons that you’ve learned and applied to your business from the government actions during this economic crisis, I would invite your comments to share with everyone.