Noticed a great article on Wharton website through my linked-In connection about how the shopping experience has been and how it would be in near future. As I was reading through initial paragraphs of this article, my skeptic mind kept saying, “… just a temporary, didn’t we have similar economic cycles before? where those consumers, what did they learn? why did they change their habits again? on and on and on”. However as I proceeded further, I did notice few wordings that made me write this section and refer back to the original article. ” … definitely changed by what has happened. I don’t think they will go back to spending like they did, at least not anytime soon” –> the latter section of this sentence makes sense. World economy did wobble twice in past 2 decades, 1970s was another instance as I heard from people around here. and there was one in 1920s and 1930s. Well, does it mean people have kept their learnings through out? may be or may be not.
I also think, at times, such economic turbulences are unique and hard to compare.
further reading through the article for which I came up with the title on this post was the section with “Consumers have cut back sharply, not by choice, but because credit card companies and other lenders pulled their support for the consumption binge that fed into the current financial collapse” –> that is another profound statement. so people are being forced by the credit companies to be frugal. There has been a saying about “stay within your means / budget” when it comes to personal financial management. As I understand from my parents and many people around, this has been true (to most extent) when there was no credit card concept – either they had to borrow money (cash) from other people or banks or not buy at all (sort of envelopes way of budgeting) however, that is not the case anymore, just use the Credit Card and pay later (buy now pay later)
Well, it has both pros and cons with respect to economy.
It is a great article … read the rest [link]