There is a lot of talk these days about thinking outside the box to solve the world’s financial problems. Whenever I hear and read such calls I know frustration levels are hitting all time highs. However, I am yet to hear or see any innovative thinking. No offence intended, that’s just my perception based on limited reading.  There are plenty of good ideas being circulated and no doubt many of them are better than anything I have to offer.

I remember the first time I was presented with the nine dots thinking outside the box puzzle. WARNING WARNING Super Smug Mode Engaged: I quickly figured out what transpired to be answer, but seeing my fellow students still beavering away I thought I must be wrong. Oh my doubt, my doubt! I re-examined the question and came up with an alternative solution. I ripped the  paper in three and realigned the dots in a straight line and then solved the puzzle with only one line. I re-read the question and realised I was instructed to use four lines. While I could have drawn four lines backwards and forth to fulfil this requirement I decided the question itself demonstrated “in the box thinking.” The phrasing of the question limited the possible solutions. To me realigning the dots and using one line demonstrates out of the box thinking while using four straight lines as directed merely demonstrated problem solving abilities within the confines of a slightly larger box. But hey I’ve always been a tad delusional.

One problem is most original creative thinkers are not in a position to influence the outcome. This is because they tire of being restrained by in the box thinkers, individuals commonly referred to as bureaucrats, economists and various other derogatory terms. They tire of always fighting to have their ideas appreciated and improved on. They drop out of the system or give up. Most of the time that’s fine as the world ticks along a well defined path. However, at times like this that open minds are really needed. 

Have I set the bar impossibly high for my own solution? Come with me on a journey and we will see.

Point One: Did you notice anything wrong with my question above? That’s right I left out a very important s. Those people looking for a solution are unlikely to succeed and are clearly so far within the box they can’t even see the sides. To think outside the box you must think in term of solutions. You must believe there are many solutions.

Point Two: Open you mind, cast off all preconceptions. That’s tough to do. I find it helps to invert what I believe. 

OK, I’ve blathered on long enough and I still haven’t thought of any solutions, so I better just start brain storming. Though, before I go on I should confess that I don’t actually see a problem. I see a natural cycle of growth and abatement. The primary reason I’m interested in a solution is so we can move on and focus on the real problems facing humanity.

Point Three: To think outside the box it helps to know what the box is.

Here I go, hold on to you hats and try to control your laughter as I make this up as I go.

If I define the box as America, then the place I’d start looking for solutions is outside of America. While I love the idea of original thinking, that is a near impossible aim, besides which, for most solutions original thinking is not required. Solutions normally already exist, you simply have to look around for them and borrow them from unexpected places. I’m going to be really lazy and suggest a solution from my backyard of Australia.

Aussie Aussie Aussie 

The Australian state of Victoria introduced a first home buyers grant in 2000. The Australian federal government expanded this the idea in October 2008. New home buyers receive a grant of $14k for an existing home or $21k for a new home from the federal government. The States top that up with varying amounts, $7k in Victoria.  The current US bailout of $800B could provide the opportunity for over 30 million new home owners to enter the market. Obviously there aren’t even that many, so the program could run for many years or the left over be used for infrastructure, alternative energy or some other worthwhile economically stimulating ideas. I assume there are some good ideas in the current plan, though many people assert there aren’t. All those new homer buyers would stabilise the housing market and generate significant demand in many industries as they filled their new homes with furnishings, white goods, linens etc etc. Hey presto demand reappears and off we go again blindly consuming.

Now let’s take a slightly larger step out of the box.

Perception is Reality.

I realise some people are being economically hurt and the ramifications of that can be horrendous. However, the majority of people actually have more cash flow now due to falling mortgage rates and oil prices. Perhaps the problem is one of perception. People perceive we are in economically though times so they react by curtailing their spending and thus the vicious cycle continues. How about Murdoch and other mass media moguls get together to change perception. Perhaps the mass media could actually make a worthwhile contribution for once and convince everyone that the recession has passed and it’s time to celebrate.

Another possible source of perception altering

The government and other organisations could lie about reality. They could alter perception and consequentially alter reality. If they started saying and providing “data” to show the recession/depression is over that everything is rosy again, then people would start spending. You know and I know we’ve got the cash. People would spend, businesses would hire and spend and yeha off we go again.

We all become agents of change

Or perhaps rather than wait for someone to do something we could all take responsibility ourselves and start spending. That is the path this normally frugal individual has chosen to take, though in honesty it is not altruistic it is simply that most things are on sale and I love bargains.

Based on my stock portfolio here is what I suggest you do to kick start the economy. I know money is limited so the first couple suggestions are for sources of money

• Cancel your Netflix subscription for the next six months. You need to be out spending not sitting at home watching TV. This will allow me to re-buy Netflix at a considerably lower price.
• Do not buy any Under Armour gear for a few months. That will let me scoop up the shares at a discount and you’ll get to buy the same UA gear at a massive discount.
• Eat more wings, preferably Buffalo Wild Wings. Eating out is a wonderful uplifting experience. You’ll enjoy it and be part of a visible solution.
•  If you need to watch something then make sure you stream it over the internet. Akamai and I will thank you. Oplink and Harmonic will also benefit from the increased demands on the net.
• Covert you hot water to solar power. The environment, Suntech and I will thank you.

Point Four: It is unlikely than one individual will have the right answers. Out of the box thinking is really about being open minded and considering all options. It about building on ideas and encouraging free thought.

Please note while I am smug about my “stupid problem” solving ability, I am not arrogant enough to think I can solve a problem as complex as this financial crisis. Besides which as I said earlier, WHAT PROBLEM. It’s all part of a natural cycle. I’ve thrown these ideas out there as I haven’t seen anyone suggest them and I believe the more ideas the merrier.

Related posts:

1. Zacks Roundtable Articulates my Thinking
2. Variant Perception and Reflexivity