Kona Commercial Property Specialist

January 24, 2008

Recession or timely lifestyle adjustment

Filed under: Updates — Chuck @ 10:29 pm

It is quite easy for a large sector of American households to stop purchasing non consumables for a while. Our homes and closets are brimming with unused or underutilized items. In fact it is the environmentally friendly thing to do.

Certainly there are factors beyond wanting to be environmentally friendly. Credit card companies are activating little known clauses to crank up interest rates on existing cards. At the same time consumers realize card charges have a higher proportion of fuel expenses than ever before. Many households feel or see the need to pay off high interest cards and cut discretionary spending on eating out, vacations jewelry, new furniture, and gadgets for a while. It is time to take stock, have a garage sale, cancel that mini-storage locker and enjoy life with what we already have and actually use. Americans are constantly encouraged to be gluttonous; $5 per gallon gas will make even more people rethink their spending priorities.

There is a whole generation of baby boomers who are beginning to reallocate their spending priorities from buying new things to getting rid of old things, spending more on travel and recreation and on health care.

Post baby boomer generations include many workers without a future for their present workplace knowledge. Unless they invest in more education, many will find themselves employed as lower paid or unpaid care givers, like it or not.

Even though the hospitality industry is taking a hit right now there are still thousands of jobs available for people with a hospitable attitude. Way too many Americans between 20 and 35 live an all about me life and have a very hard time seeing themselves providing enjoyment or even gracious civility to others.

Despite a penchant of the press to highlight the negative, it will be difficult to talk ourselves into a real recession; there is an ever increasing portion of the population whose paycheck comes from government employment or as a transfer payment recipient such as Social Security.

Beginning now and over the next few years, for a huge number of Americans, their concept of “high standard of living” will change to mean the ability to have the time and finances to care for themselves, their aging loved ones, and the environment.