There’s much debate about how to “fix” the American economy. All agree more jobs are key. Some say the government should create jobs with lower corporate taxes. Others say businesses should use the cash they’re hording and hire more people.

There may be another approach that is less politically charged or dependent on CEO benevolence.

Lower taxes will not cause bosses to hire if there’s not more demand for their goods. More demand means more people needed to make and serve the goods … jobs.

So how do we increase demand?

More and better advertising that says the right things to the right people in the right place at the right time.

Many companies have products or services that can help people through these difficult times. Others have products that people want but need a nudge to buy now.

Advertising (including public relations, direct response, promotions, online, etc) is always the first budget item cut when CEOs think there is a down turn in demand coming. And, sure enough, it does.

Advertising has been called the “lubricant” of capitalism. If that is the case then we can use a few squirts in the works about now.

I opened the first ad agency in Moscow in 1989, a failed controlled economy with no advertising, and look at the place now.

The nature of business insures that once a company becomes aggressive with advertising its competitors will follow. Demand for the goods in that whole product category will rise.

More production and distribution will be required to satisfy increasing demand. Then more stock on the shelves and more traffic in stores and on web sites … jobs.

Plus, more people will be needed to produce the raw materials and tools to make and package these goods … jobs.

More plants and malls will need to be constructed … jobs

More ads in the media will also mean more space for editorial/entertainment content. More reporters, photographers, editors, actors, directors, musicians will be needed … jobs.

And to prepare the advertisements, ad agencies will need to re-hire the people laid off because a recession might come and hire those college grads who know how to address the valuable youth market … jobs.

So maybe the solution to getting America moving again is to use the tool companies have always used to build awareness, desire and demand. No incentives needed, only guts.

Gary Burandt
Executive Director, ICOM
Rollinsville, Co