My generation read The Little Engine That Could, that while pulling up a tough hill kept saying to himself, “I think I can, I think I can.”  You would assume that today’s business leaders, mostly in my generation, would remember the Little Engine That Could. You would think that they would step forward and seize the day and gain share while weaker competitors shrink back.

Instead, in a dearth of leadership, virtually every company in America is cutting back and waiting for the worst, thereby guaranteeing its earlier arrival.  Even companies that are doing well.  Even companies that have a natural competitive edge during hard times are cutting back and passing on the opportunity to gain significant share.

Consider Walmart.  Who could be better positioned to gain from a bad economy?  Instead they have cut marketing budgets at Walmart, Sam’s and Walmart.com.  Sales are up 7% so they announced cut backs of 700 headquarters employees and a shift of some 500 IT jobs from Bentonville to India.  Can’t they see that at least 10% of American households that have never shopped at Walmart are primed to be picked off for easy trial and habit formation while times are tough.   IF I WERE LEADING WALMART, I would be on the rampage to develop new loyal customers.  Their new slogan, “Spend less, live better,” is perfect for today.

There are other businesses that should be doing the same.  OTC drugs can replace prescription medicines in some cases.  Generic drugs should be marketing heavily.  I could go on.

In fact any brand that represents a significant trade down opportunity or significant value should be pouring on the effort now.  When else will they have such an opportunity to make their point and gain share?

In the Great Depression, Herbert F. Johnson of SCJohnson Wax introduced the first self-polishing floor wax, Johnson’s Glo Coat, right into the heart of tough times.  He reasoned that American women needed relief from drudgery more than ever.  He announced to every employee that no one would be laid off as long as his family still had a cent, and shipped every account in America an introductory quantity of Johnson’s Glo Coat floor wax with a personal letter telling them that they could pay the company when they could afford to.  Legend has it that he collected every cent.  in April of 1935, he started sponsoring Fibber McGee & Molly, a major advertising committment at that time.  And Johnson’s Wax emerged as a mainstay of American companies.  THAT IS THE KIND OF LEADERSHIP TODAY NEEDS.

The media used to help too.  Today, the mass media that encouraged us through the Depression and World War II cannot seem to get past features on how to save money on coupons and how to drink cheaper coffee, constantly reminding us of how bad things are and how much worse they are going to get.

Where is the positive propaganda that in many times has forged the “can-do” attitude necessary to support the American people in their effort to pick themselves up.  Where is the Little Engine that could now that we need him so much?  Why aren’t we saying as a nation, “We know we can.  We know we can?”