Unless you are the government of the United States.

In that case, the good times never end. Those in control of the country’s purse strings have — for the past several decades — opted to spend much, much more than is actually in the nation’s coffers. But not to worry. Being as it is the government we’re talking about, they can a) increase taxes; b) borrow more; and/or c) print money. What could go wrong?

Now, there looms the specter of exceeding the “debt ceiling”; the amount of money authorized by congress for the government to borrow in order that we may continue to spend that which we do not have. Unlike those of us dealing with MasterCard or Visa, the government routinely increases the amount of money the nation can borrow. This would be as if you could call up your credit card company and inform them they are increasing your debt limit to an amount you specify. Try doing that tomorrow and see how long it takes them to stop laughing.

But if our betters in congress choose to increase the debt limit each time the country bumps up against that pesky boundary, why have the limit at all? If government “stimulus” is good for the economy, let’s just do away with the debt limit entirely and spend, spend, spend!

Think of it: we could borrow trillions…quadrillions…(whatever comes after quadrillions). If unbridled spending is actually beneficial for the nation and its citizens, let’s borrow every dollar, peso, yen, ruble, mark, and pound in existence! No more limits! We could give each citizen 100 trillion dollars and end poverty completely.

Of course, this scheme is quite insane. Not even the United States can escape the consequences of unfettered borrowing. Sooner or later, the money must be repaid. And congress, as well as this clueless administration, knows it.

So if there is to be a debt limit — and in a sane world, this cannot be avoided — it must truly be a limit. A boundary beyond which we cannot pass.

As is typical of the Washington crowd, financial Armageddon is predicted if the debt limit is not increased. Contrary to their claims, the United States will not default on its obligations if reality triumphs. We will pay those obligations due, and be forced to reduce or eliminate those optional expenses we cannot afford. This is secret code for cutting expenditures. Which is the whole point of the exercise.

If the debt limit is to mean anything at all, it must be respected. As with your household, when you run out of money and the credit cards are maxed, you stop spending. The alternative will increase the nation’s slide to complete economic collapse, and the end of the United States as we know it.

In major markets having access to ratings information is vital. But in smaller markets, where local direct is king, the numbers are less important. Experience shows that less scrupulous stations frequently compensate for bad ratings by distorting the numbers. This adds to the clients’ general confusion and distrust of ratings in general. Who do you trust when every station is claiming “we’re number one!”?

At least one market manager decided to try a different approach. Taking the bold step of not renewing his ratings contract, he took the rather substantial sum he saved and applied it to persuading clients to make year-long commitments to his stations. When key major advertisers were offered an all-expense-paid two week vacation for two in Hawaii in return for a year’s contract with the station, the result was a 37% increase in station revenue.

Advertisers are people, too. They respond to personal inducement just as would anyone else. The money freed up by dropping your ratings service can be multiplied via innovative approaches into more profit for your stations. Once sales people see the potential, the question of selling without numbers becomes less important. That’s because sales reps are people, too. And they always love making more sales.

With two years to encourage renewed economic growth, the current administration has been able to barely make the needle quiver. While Radio station operation is a far cry from managing the fate of any nation — let alone the United States — any manager with a modicum of effort can effect a turnaround of an ailing station within two years. Yet here we are, two years after the arrival of “change”, mired in near-10% unemployment, with no sign of any improvement on the horizon.

Instead of taking steps to boost employment and encourage the growth of business, the government has taken almost every step possible to slow the economy. Uncertainty on taxes (then extending the current rates for only two years), new regulations that serve to restrict bank loans, extending unfunded jobless benefits (for which businesses bear the burden), and talk of increasing the minimum wage to $9.50 an hour — a definite job-killer.

It will require a truly pro-business administration and congress to get the country back on track to prosperity. And I don’t see that happening until possibly 2013, or beyond.

So, goodbye 2010. You’ve been a lackluster year, and I hope you won’t be joined by 2011 and 2012. But I wouldn’t bet my Radio station on it.

Somehow, local retailers managed to sense a slowdown in business long before it revealed itself in national statistics.

They responded to their perceptions by cutting back on their advertising budgets. Our stations always saw a drop in overall revenue several months before the recession became apparent to everyone else.

The reverse was also true. After a time, while the media was still moaning about the slow economy, local retailers began increasing their ad budgets. Our stations’ revenues increased. And, a couple of months later — ta-dah! — the recession was over.

As a result, it was encouraging this month that some of the major radio groups are beginning to see sales increases of 4 percent or more over the previous year. It’s an indication that the economy is far from dead.

Given the right conditions, the economy’s natural tendency is to grow. In fact, it’s actually difficult to hold it back.

Unfortunately, we are not experiencing the right conditions. Instead of a government that encourages private industry and increased employment, it appears we have an administration that seeks to place more inhibitions, road blocks, burdens, and red tape on employers. The result is a chilling effect on economic growth.

The economy is trying to recover. We’ll keep an eye on our “Radio barometer” to see if the sales increases continue, and if Radio can predict the end — or continuation — of our current recession.

In today’s economy — what little of it remains — many stations are on the edge of bankruptcy. Will adding another revenue drain to their burden prove to be fatal? And if Radio stations go silent or switch to news/talk to avoid the performance fees, how does that help the artists sell more of their music?

The symbiotic relationship that has directly benefited artists by making them (in more than a few cases) millionaires has also helped Radio. If artists are to be paid for their music, perhaps Radio stations should be paid for the time required to air the artists’ songs.

Just to be fair about it.

So what does Radio’s “Magic 8-Ball” reveal?

Will Radio survive the economic doldrums that continue to stifle revenues? Yes.

Will some major Radio companies not make the cut? Yes.

Will increased health care expenses force most companies to reduce the number of employees? Yes.

Several years ago, the group for which I managed a cluster of stations provided an extremely generous health care plan. There was no employee contribution; all expenses were covered by the company save a $10 per-visit co-pay.

We saw our health care costs escalate 20% per year, and it was only a matter of time until the company would have no longer been able to absorb the increases. The acquisition of the stations by a large conglomerate resolved that issue (although the quality of the new company’s health care plan was a disappointment to employees).

The new government-mandated health care system will be phased in over the next several years. However, premiums are projected to increase dramatically as insurers are required to accept individuals with preexisting conditions. Since the federal government will cap the amount of premium increases allowed, most insurance companies will likely be squeezed out of business within 2-3 years. The end result will be government-run health care insurance (a.k.a. “single payer”).

Radio’s revenues have suffered greatly over the past two years. Only now are some operators starting to see a reduction of losses…some even are enjoying increases. A Magic 8-Ball is not required to determine that the advent of skyrocketing insurance premiums is a factor that will further hamper Radio’s recovery (as well as most other business).

Will government continue to seize more control over the nation’s private sector? Ask again later.

Now, we see a number of prominent Democrat politicians opting to retire or resign from the House and Senate in a trend that is threatening to become an exodus. The apparent reasoning is the electorate tide has turned and many of these long-serving incumbents cannot be re-elected. Anger over out of control spending, loss of jobs, and a depressed economy are all good reasons for this trend.

But could it be there is something more?

In my experience, most politicians are not afraid of fighting for re-election. No matter the poll numbers, seasoned candidates — especially incumbents — are more than willing to battle to keep the position and perks of public office. Also, a number of Republican members of Congress have also decided to “pull the pin” and retire…even though the 2010 elections are trending strongly in the Republicans’ favor (at least, this month).

So why would so many of the “senior” political class choose now to abandon their careers?

One possible answer: the fragile economy is about to suffer a major body blow — such as bankruptcy — and none of these pols want to be in office when the earthquake hits.

We’ve heard warnings from Radio pundits such as Glenn Beck and Neal Boortz that the country cannot sustain our insane spending and borrowing. What if the top-level Congressional insiders have been briefed on a coming financial meltdown and want to be as far away as possible from ground zero when the disaster hits? If you were in office, would you want to face the voter’s wrath if our currency becomes worthless?

I hope and pray this nightmare scenario does not come to pass. But a financial Armageddon is certainly one possible additional reason why so many politicians have decided to head for the lifeboats.

What do they know they’re not telling us?

Those of us in Radio could see it begin back in the late ’70′s. In the early ’90′s, the trend was obvious. Now, as we enter the last year of the 21st Century’s first decade, the monsters are visibly in pain, trying to hold off the inevitable.

So it is that the daily local newspaper prepares to go the way of the dinosaur.

As an enthusiastic Radio sales rep in the ’70′s, I was shocked one day when a client had to cut our meeting short. He said: “I have to get my ad down to the newspaper before two or it won’t get into tomorrow morning’s paper.”

That’s right: the newspaper sales rep was too lazy to come by the advertiser’s business to pick up his ad–the advertiser was forced to deliver it to the paper!

Those days are long gone.

However, it has been the internet, not Radio or television, that has dealt the death blow to the printed page. Back in the day when our stations were battling with the local paper, we ran a promo line at the end of each newscast: “When you hear it, it’s news. When you read it, it’s history.” Now, people Google the news and get what they want when they want it. Newspaper could never keep up with the immediacy of broadcast news. Today the world wide web offers the virtually instant coverage of broadcast but with infinitely more choices. No longer are consumers limited to one newspaper or a handful of Radio or TV stations.

Generations of consumers were trained to depend on newspapers for their information. With the advent of the internet, the generations of the ’90′s have switched to the instant gratification of the web. By the time the local paper is printed and is on the street, it is “old news”. That “newspaper only” generation is dwindling, and with it the legions of readers that once made that media king.

While Radio and TV will survive, it appears newspaper–in printed form–is quickly going the way of T-Rex. Some newspapers may remain on the ‘net, but the mega-bucks of local revenue the printed page once demanded will soon join the hula hoop and 45-RPM record as little more than a fading memory.

But in the middle of the doom and gloom, there are glimmers of hope.

In a few markets, some stations have avoided double-digit declines; a very few have managed to actually increase profits. In virtually every case, these exceptional stations owe their success to…exceptionalism.

Unlike their competitors, these stations have integrated themselves with their community to the point that they are an indispensable part of that community. In many cases, the station’s call letters have become synonymous with the word “Radio”. This level of integration enables these stations to survive when virtually all others falter.

Such a status is not achieved in a few months or a year. It is acquired over decades of service to the community. It is also more than a few superficial promotions or sponsoring a fundraiser here or there. No, this level of achievement requires complete and absolute dedication to the community; providing a superior level of service in all facets of Radio without the expectation of a reward.

So here’s a salute to those rare stations that have come out on top when so many others have suffered. The coming year will hopefully be brighter. But regardless of the ups and downs of the economy in 2010 and beyond, the exceptional Radio stations will continue to enjoy greater success.

Unfortunately, most Radio sales reps can’t or won’t convince the advertiser to air a large enough schedule to obtain truly remarkable results. This underselling of Radio hurts the advertiser, your station, and Radio as an industry.

Many years ago, a very sharp sales rep I worked with — we’ll call him “Jerry” — taught me how to turn down an order.

Turn down an order?!?

The client wanted to air a schedule of 25 ads for the week on our station. While the schedule would have added around a thousand dollars to Jerry’s sales total for the month, Jerry just shook his head.

“I can’t accept this,” he told the client. “Because when it doesn’t work, you’ll blame me.”

Jerry then proceeded to explain to the advertiser how Radio really works, and how in order to be truly successful, the client should be airing 25 ads a day. When the advertiser replied he had never heard of such a thing, Jerry said: “It’s because they’re afraid to tell you.”

For Radio to work–to truly blow the doors off–three things are required:

1. A good product or service at a good price (customers aren’t stupid);
2. A compelling message that breaks through the ad clutter (notice, I did not say a louder message — screaming only insults the customer), and;
3. Sufficient frequency to ensure the audience hears the message.

We’re not talking a “frequency of three”…we’re talking a frequency of 20, 30, 40 impressions in a week.

We’re talking using the power of Radio to dominate a station or group of stations. This requires what used to be called a “newspaper-sized” budget. A full-page ad in the newspaper doesn’t dominate anything. But take the budget for that full-sized ad and place it on one station for the week and the advertiser will own that station.

Jerry’s client was convinced — he ended up buying two ads per hour every hour for a week — and had the best week in his history. All because one Radio professional was willing to tell a client the truth.

It’s time to stop underselling Radio. In the current economic conditions, including the rapid decline of newspaper, it makes more sense than ever before for Radio to step up and claim its unfair share of the ad pie.