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Lately, when I've been out to a restaurant, there are usually lots of other people there. And the new IPhone has set record sales. How can people afford these things if we're in a depression?
I wasn't that old during the recession in the early '80s, but I hear that the restaurants were dead during that time. What makes this different?
We arent in a depression but a recession. Also most have jobs.The debt rate is lower as its the savings rate. Its like any recession regions vary and some peopel are hurt more thn othres, Also ulike the 70;s recession the inflatio rate is not i double digit nmers ike uneployamne. consumption is not has high as previuosly especaiily o the big items, Car sales are down as well has home sales.
Lately, when I've been out to a restaurant, there are usually lots of other people there. And the new IPhone has set record sales. How can people afford these things if we're in a depression?
Some can't and use credit. Once people have a taste of luxuries, they usually don't want to give them up. Shiny New Gadgets brighten some people's day and living frugally has never been presented as a 'sexy' option.
Quote:
Originally Posted by OrlandoRE_Miracle
I wasn't that old during the recession in the early '80s, but I hear that the restaurants were dead during that time. What makes this different?
Generally speaking (and I mean generally), unless you lived in a large metropolis, the restaurants several decades ago were divided in a few categories: 1)low end fast food or deli (McDonalds, Pizza Hut) 2)family-style (Sambos, Village Inn, Dennys) 3)nice occasion higher end (the family would dress up, meals were multi-course). Most of the time, meals were prepared at home. There wasn't a large selection of TV dinners - maybe 2-3 brands and they didn't take up a lot of shelf space. And supermarket delis just didn't have the take home full meal options that they do today. So eating at home was the norm.
I've witnessed the gradual change and now see people generally less interested in investing the time and energy into preparing meals at home. For most, it's more fun, everyone can have what they want (choices), it's a timesaver, it's a chance to be around others socially, they have no interest in cooking, etc. People vote with their dollars.
As a kid, I would've never believed chain restaurants and coffee shops like Panera and Starbucks would be popular. No one needs Vivaldi playing while they eat their soup, and coffee is coffee, right? Apparently not. Enough people want that taste of luxury to keep those places in business.
I have noticed too that restaurants, movie theaters, and malls are jam-packed still. Even unemployed people I know are still eating out, going out, and shopping because they are too married to their old "lifestyle" to give it up.
I haven't felt in danger of losing my job since the recession started but I have cut way back anyway, I guess kind of in solidarity with my struggling peers and also because eating out is so freaking BAD for you.
Some of my friends who eat out a lot use the "I can't cook" excuse. I offer to teach them and they blow me off. And most of the ones who eat out a lot are also overweight/obese. No surprise there.
this is a nation with 300 millions people and this is a world with 6 billions inhabitants. There will be a lot of people who are very well off no matter what, no matter how bad the economy is. Even at the height of the great depression, only 1/4 of the workforce was unemployed, which meant the majority of the workforce still had jobs. Even during the 90s' Russia when the recession was much more brutal than the great depression in the US, there was still plenty of consumption, luxurious or otherwise going on cuz there will always be rich people, relatively well off people and so called middle class around and in a large country, chances are these people taken together exceeding the whole population of many smaller countries and will be enough to sustain a lot of service industries catering to them. Relying on personal perception is very deceiving cuz usually what you see doesn't come to even remotely resembling the overall picture. Based only on personal perception, kids grown up in Orange County will probably perceive the US as a country much more first world than it actually is and kids stuck in urban Detroit could rightfully call the US at most marginally better than many African countries. Perception lies. That's why despite all its problems, people and countries still invest heavily in hiring hundreds of thousands, maybe millions of people gathering and analyzing data.
I also found this situation weird. I hear all over the news how retail sales are absolutely horrible and my local counties are running out of funds because no one is spending money. I find this odd because whenever I go to the store or any other place and they are always packed and the lines are still super long.
Lately, when I've been out to a restaurant, there are usually lots of other people there. And the new IPhone has set record sales. How can people afford these things if we're in a depression?
I wasn't that old during the recession in the early '80s, but I hear that the restaurants were dead during that time. What makes this different?
In all demos consumption is down except for the rich. Most rich are boomers and they are the largest Demo. In the 80's they were young and broke. Unfortunately their spending has peaked as an age demographic so consumption will decline over time jut due to them.
When you look at sales tax revenue to states and munis we are down like 15%, so things are on sale.
Another big factor are people in default on their loans. The estimate is people who are not paying a mortgage or rent are spending $12 billion a month, that won't last forever.
I've noticed this as well, that despite the occasional shrill cries of "everyone is barely keeping their heads above water" or "there is no more middle class" that one hears in forums like this one still sees people at the mall, people at restaurants, people at the movies, people filling up planes and cruise ships, newer model cars filling the highways, etc.
It's all relative, but we certainly don't seem to be in quite the state of despair that some believe.
Lately, when I've been out to a restaurant, there are usually lots of other people there. And the new IPhone has set record sales. How can people afford these things if we're in a depression?
I wasn't that old during the recession in the early '80s, but I hear that the restaurants were dead during that time. What makes this different?
There are people who still have money and/or use credit card.
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