RCBH928 wrote:I do not want to sound like a jerk, but does bad economy really hurt the spending of individuals?
It does. First and foremost, with a bad economy, people are just inclined to spend less money. They may not make some frivolous purchase they otherwise would have. They might pay more attention to the grocery budget where normally they didn't at all.
I'm not an expert, but I can tell you from my own personal experience. I worked in supermarket for 9 and a half years, from 2004 (before the recession). I can tell you what spending was like before the recession and after. It's like night and day. I also worked in a privately owned music store. The owner told me sales fell off when the recession hit. He said they've come back some, but it's still not where it use to be. And that's my findings with the supermarket. Business is a little better, but still not where it use to be. People aren't spending money like they use to.
RCBH928 wrote:The reason I ask this is that during economy downturns business was booming for Xbox, PS3, iPhones, Apple, I guess Netflix, which does not show signs of poverty.
During the Great Depression in the 1930's, movies were still being made and movie theaters were still in business. People need some way to escape.
RCBH928 wrote:Sure maybe less people are buying BMWs, but the living standard must be the same for most?
The standard of living, for most, hasn't changed drastically. For some it has though, I would imagine. For most, I wouldn't say drastic. Maybe spending money less frivolously. Paying more attention when food shopping to sales and store brand instead of name brand items. Not making large purchases, like new TVs, cars, etc.
Forget BMWs, just any cars in general. Instead of getting a new car, you might have considered just keeping your old one as long as possible. General Motors had to file for bankruptcy in 2009 and was bailed out by the government. There's no more Saturn and Pontiac.
