In recent months, discussions about the boom and bust cycles of our economy going back to the Great Depression have been the focus of many news stories. During boom cycles, too many of us experience periods of inflated feelings of power or delusions of grandeur, characterized by excessive risk taking and out of control spending. During bust cycles, many of us experience periods of indecisiveness, black and white thinking, loss of energy and fatigue, even feelings of worthlessness and suicidal thoughts. These reactions are classic symptoms of bipolar disorder.
Companies can and do prosper during times of economic turmoil. What do GE, Disney, HP, Microsoft, and Apple have in common? They were all startups during steep declines in the U.S. economy. GE started during the panic of 1873, Disney started during the recession of 1923-24, HP began during the Great Depression, and Bill Gates and Paul Allen founded Microsoft during the recession of 1975. Even today, while the economy is in the worst down period since the Great Depression, Apple is thriving. All these companies realized that they had an advantage by adopting a different mindset, a different way of seeing the crisis. Instead of succumbing to the situation, they saw it as an opportunity to innovate and grow.