How Will Daily Life Change During This Slow-Depression?
Stop being alarmist. Here’s what’s going to happen: – Some people will lose their jobs. Maybe even you. – Some of your favorite Websites, magazines, and newspapers might go bust. – It will be harder to get a mortgage, a credit card, or another sort of credit for awhile. Then it will get easier. – The government will lower taxes and buy lots of stuff. Then it will raise taxes and cut lots of services. But other than that, not much will change. When a recession’s going on, it always seems like there’s no way out. Since demand’s going down, what choice do suppliers have but to cut supply? And won’t this just lead to a chain reaction and everyone will cut everything? Well, yes, but that’s not the whole story. The rest of the story is that all the factories, stores, restaurants, barbershops, and so forth that existed a year ago still exist, more or less. And all the people who need and want to eat, drink, buy stuff, and live their lives still need to do so. So most stuff will keep happening
Hopefully my daily life will change due to my finally being able to afford a house. Amen. Also, look for more people buying on layaway. Layaway is totally going to make a comeback. I don’t think prices will rise; people are actually worried more about deflation at this price. Really, I’m looking at Japan in the early 90s as a model. Real estate bust, a couple big bank failures, no liquidity in the financial system, and deflation.
I am from New England, grew up in an upper middle class part of Connecticut, and have always lived in affluent areas. A few years ago, I moved to Buffalo. Because the economy has been depressed here for so long, I find that (in general) the spending culture here is a little different. People don’t go out to each as much, people save more money, people bring their own lunches. When I lived in Connecticut, there wasn’t a culture of thrift. I would say in Buffalo, that is what I have experienced. I do thing that if this recession keeps up for a few years, our culture of spending and spending will change. I don’t know how much, but I think it will.
