Miami/ Ft Laud Lead in worst Economy, Tampa 2nd (Cleveland: insurance, credit card)

[FLgal23]

http://www.forbes.com/2010/04/09/cit...me-prices.html

http://www.forbes.com/2010/04/09/cit...s_slide_2.html

[Nolefan34]

Worst economy for what category? Major cities? I would think Detroit and Cleveland would be worse since they were so reliant on the auto industry. I thought Detroit had like 60% unemployment or something. Their homes are worthless. I doubt South FL or Tampa are as bad as those cities.

The overall problem FL has is that we are 95% service based with little manufacturing. You only need so many customer service reps, wedding planners, insurance agents, Burger King managers, etc. We over-consumed in the 90's and early 2000's on credit cards. We built up these large industries that were based on consumption and unsustainable in the long run. Now that cheap credit is no longer available, consumers are permanently tightening their wallets and using discretionary spending. So all of these service jobs will be in less demand and may never come back.

You can only sustain a service-based economy for so long until the masses of people run out of money. Especially when their main source of money is cheap credit and family inheritances. As much as the U.S. economy grew during the 80's and 90's, the wealth was not going into average people's pockets. It was being spent and wages were declining the entire time. At some point, people have to save money and invest in retirement. Instead, people spent all of their paychecks while drastically expanding their standard of living. In 2006-present, the bill has come due and the credit has dried up. Now people will change their habits much like Americans did back in the Great Depression, although not quite as severe.

[StilltheSame]

Originally Posted by Nolefan34

Worst economy for what category? Major cities? I would think Detroit and Cleveland would be worse since they were so reliant on the auto industry. I thought Detroit had like 60% unemployment or something. Their homes are worthless. I doubt South FL or Tampa are as bad as those cities.

The overall problem FL has is that we are 95% service based with little manufacturing. You only need so many customer service reps, wedding planners, insurance agents, Burger King managers, etc. We over-consumed in the 90's and early 2000's on credit cards. We built up these large industries that were based on consumption and unsustainable in the long run. Now that cheap credit is no longer available, consumers are permanently tightening their wallets and using discretionary spending. So all of these service jobs will be in less demand and may never come back.

You can only sustain a service-based economy for so long until the masses of people run out of money. Especially when their main source of money is cheap credit and family inheritances. As much as the U.S. economy grew during the 80's and 90's, the wealth was not going into average people's pockets. It was being spent and wages were declining the entire time. At some point, people have to save money and invest in retirement. Instead, people spent all of their paychecks while drastically expanding their standard of living. In 2006-present, the bill has come due and the credit has dried up. Now people will change their habits much like Americans did back in the Great Depression, although not quite as severe.

Preach it Noles!

[matchpoint]

This is basically an autopsy of the financial meltdown. It doesn't really say THIS IS THE WORST ECONOMY RIGHT NOW...more like, these are the 10 spots that felt it the worst. Maybe.

Detroit and cities in Ohio and PA have the worst economies right now.