A New Economic Landscape

Posted On: July 24, 2010 at 2:22 p.m.

Filed Under: cash advance economy USA Today

What now seems like a necessity might be a luxury. At least, that is the mindset taking over America as we face a long economic recession. It appears that more and more people are buying smaller homes, smaller cars, and even reconsidering the need for things like air conditioning. This, of course, also affects cash advance and lending companies who rely on Americans to borrow money. “As jobs continue to migrate overseas and our tax dollars disappear into the form of corporate “bailouts”, millions of Americans are struggling to cope with the ever-changing landscape of our nation’s struggling economy. And with more and more statistics coming in everyday, many Americans are losing faith in our economy “bouncing back”, at least anytime soon. [[ads]] A recent poll from USA Today, it seems that 54% of Americans surveyed believe that their standard of living has not improved, when compared to that of 5 years prior, and that only 45% believe that things will improve for their children. This new “perception” of our future is due to many changing economic factors, and many analysts wonder when, and “if”, we can turn the economy around. One rather interesting shift that Americans will be facing soon is that of leaning towards “smaller” products. For example, whereas the average size of the American home in ‘07 had almost doubled when compared to the generation prior, all signs and trends point towards a smaller average home size in the upcoming decade. Also the trend has already hit the auto industry, with manufacturers shifting towards smaller and more compact passenger cars. And it seems that Americans may need to cut back our lust for belongings if we are to fight back against this recession. When compared to the 70’s items such as air conditioners and dishwashers were considered luxury items, yet today you can find these items in many homes with incomes below the poverty line. And since most of the non-essential items we purchase are produced overseas, we aren’t strengthening our by putting our dollars into these “luxury” purchases” (http://www.prnewswire.com/news-releases/americans-struggle-to-adapt-to-changing-economy-98084949.html). This is an interesting concept. Are we moving to a time where frugality subverts our current way of life?