Tag: economy

Boy, the signs and portents of our economic spasms are strong in today’s lunchtime perusal of the news:

• From the “Feeling Remorseful” Department: Remember how, in the “good ol’ days”, one might get buyers remorse after a big purchase. Nowadays, in these frugal times, there are increasing reports of “saver’s remorse”. Yup. People are feeling remorse that they didn’t have enough fun, that they just put away their money and kept working. In fact, the psychologists (who are right up there with the cultural anthropologists) have invented a term for it: hyperopia, the medical term for farsightedness and the opposite of myopia, nearsightedness, because it’s the result of people looking too far ahead. In other words: People are so obsessed with preparing for the future that they can’t enjoy the present, and they end up looking back sadly on all their lost opportunities for fun. Have you experienced “Saver’s Remorse”?
• From the “A Smart Choice?”: The economy, combined with the decrease in fuel prices, has created a large number of orphans. No, I’m not talking about children of parents who face forclosure, but of orphaned Smart cars. It appears an increasing number of people are cancelling orders for the two-seater tiny cars, opting instead for less-expenses sedans that get almost as good fuel milage.
• From the “Not Mailing It In” Department: The economy has also resulted in postal service cutbacks. But one cut back that they’ve been more silent about is the removal of more and more of the public mailboxes. In recent weeks, one-quarter of the 3,700 collection boxes in the Los Angeles area have been removed; this purging is part of a nationwide reduction prompted by government cutbacks and the shift to online bill-paying and e-mailing. I know I haven’t used a corner mailbox in ages.
• From the “Waist Not, Want Not” Department: Some businesses are growing in this economy. The New York Times is reporting a growth in the amount of candy sold: It seems that people find sweets comforting in bad economic times… especially cheap ones (there’s not equivalent growth in the luxury chocolate market). Another growth market (no puns intended) is adult entertainment. According to the AP, it appears that more job seekers have abandoned “dress for success”, i.e., the job market is prompting a growing number of women across the country to dance in strip clubs, appear in adult movies or pose for magazines like Hustler. However, some industries are in a clear decline: the number of home remodeling projects have declined as there is less HELOC money and fewer people are moving into new homes (it appears moving tends to trigger remodels).
• From the “East vs. West” Department: Whereas the West bails out companies like AIG, that deal with nested corporations, the East is dealing with problems of their own. The Russian economy is so bad that the Russian government will spend up to $28.4 million for the Kremlin and state agencies to purchase large quantities of nesting dolls and Russian hand-painted dishes to give as gifts. I wonder if there are bonuses involved?

From today’s news, some interesting, albeit perhaps unanticipated, effects of the recession:

From the “We Grow ‘Em Big Out Here On The Cube Farm” Department: At least there is one retailer who’s stock, or should I say inventory, is rising. The people that sell used cubicles. Yup, as businesses close down, all that old office furniture and cubicle parts are passed on to used office equipment resellers. So, if you want to turn your living room into a cube farm for that feeling of work, or you want to turn that spare bedroom into compact living space for those extra borders, do I have an offer for you?
• From the “And Speaking of Recycling” Department: Just like the used office furniture folk, another group is seeing falling prices for their recycled stuff. The folks that send trash to China for recycling. Prices for recyclables are falling. A ton of copper scrap now sells for $3,000, down from more than $8,000 in 2007. Tin is now selling for $5 a pound, down from $300. Paper has sagged by as much as 80%. So much for that green economy, but at least we might see fewer pipes ripped out of foreclosed homes.
• From the “Buddy, Can You Spare a Dime?” Department: We all know consumer lending has dried up, and so has business lending. So where are businesses turning to meet their payroll. Microlending. Microlenders around the country say they are encountering a rush of inquiries and an increase in applications for their loans, which usually range from $5,000 to $35,000. So, the next microlending you do might be funding that business down the street.

In other news, Bristol Palin has broken up with her shot-gun fiancee and the father of her child, Levi Johnston. Now who didn’t see that coming?

We all know that times are tough. Here are a few stories indicating some of the ways:

• In Prague, demand for the “world’s oldest profession” has gone down. The brothels are seeing a significant drop in business. Insert your own punch line here.
• On Broadway, musicals are changing their marketing to emphasize their value and their good feelings. They are offering more discounts, even before their premieres.
• In California, Electronic Arts is missing its mid-year target, and as a result, it will find ways to cut costs, including canceling some game projects and making deeper job cuts than the 6% workforce reduction it had announced in October.
• In Beautiful Downtown Burbank Universal City, NBC is giving up scripted drama and other shows in the last hour of primetime to replace it with Jay Leno five days a week, at significant cost savings. Will the other full networks follow suit, or just give up because they don’t have the evening franchise? Could ABC do the same thing with Nightline?
• In St. Louis, company holiday parties are taking a hit, being downsized or eliminated.