Further signs of a declining local economy. At my boxing gym, attendance at classes has gone down substantially while demand for private training has stayed level. The owner of the gym theorized that those who only attend classes (at $15 per pop) are more likely to be vulnerable to economic fluctuations than those who can afford private sessions ($60-$90 per hour.) The notable drop in class attendance over the past three or four months, and the comparable stability of the private client pool, seems to bear this out.
I called my local tux shop today as well. One of these days, I’ll get around to buying a really nice vegan tuxedo, but for now, I just rent a standard black tie outfit for the three or four annual occasions for which I need one. (I’ve got an event coming up in ten days or so.) I know the fellow who owns the shop, and he lamented that business had been slow. Just as many wedding parties to kit out, but slightly lower attendance at black and white tie charity galas has been taking a toll.
At the Mobil station on Del Mar and Arroyo Parkway (one of my favorites), regular unleaded gas is $4.12. But the streets are as crowded as ever.
vegan tuxedo
???
Hugo,
It’s interesting that you mention our nation’s economic down turn, specifically how the sales for high-end products and services such as private boxing lessons continue to stay at their normal rate. As well as the tuxedo example about rental sales have decreased. I recently made a presentation to my Sales Force Management class, where as I played the newly appointed V.P. of sales. I had to convince the CEO that we needed to switch from the low-end market for wristwatches( this is an arbitrary product that was assigned to me) to the high-end market, like Rolex’s and Bulova. The premise for my reasoning was mainly the impending recession that our country has fallen into and only the high-end market will stay profitable at a constant rate. This poses an interesting question of why do the the consumers with plenty of discretionary income continue to have some cash? How could the recession of an entire economy only hurt the low income citizens? I don’t want to go on a rant or anything…but lets just say my presentation went extraordinarily well and the CEO decided to implement my proposal immediately.
Anyways Hugo I hadn’t visited your blog before and I find it incredibly interesting. Let me know your thoughts pertaining my presentation and the issues they bring up.
Don’t forget the shoes made of fruit leather.
But seriously, what do we DO? I’ve been hearing “times are tough” ever since cats were knee-high, and been urged to tighten my belt countless times by relatives who live far more extravagant lives than mine. Just sitting around glooming-and-dooming isn’t going to help. I’m stocking up the larder. But I have a tendency to do that anyway.
It would not be a good idea to induce a panic among the less brilliant sector of the populace–which, when it comes to economic theory, includes me. Constructive ideas are needed here as everywhere else.
Hugo,
What effect has the “economic slowdown” had on your college? I graduated in 1989 and was able to find a job before the recession started. Most of my friends that graduated in 1990 ended up going to graduate school because most companies were laying off workers instead of hiring them.
On a related note, have you noticed any reduction in loan money for students? Ref: The Next Market Bubble: Student Loans?
A vegan tuxedo would be entirely silk and wool free, DJW.
Fred, so far I see no impact on my students, most of whom were too poor to be caught up directly in the housing bubble — but I do hear regular complaints about gas prices.
And I shudder to think about the loan market.
Also, Angiportus, I’m not an economist or a personal financial planner. (I wish my wife, who does business management, would guest-blog, but that is unlikely to happen).
Cousin Ted, well done on your presentation. I’m going to take a stab at answering the question in a post.
Hugo, You need a tux three or four times a year? Sheesh! You must have tonier friends than I do. I’ve never had one on in my life.
Speaking of people driving despite high gas prices, I was just noticing yesterday that I haven’t gotten it through my head that a trip to the more affordable grocery store across town must end up costing me just as much money as to the spendyish one a couple of blocks from where I live.
“Spendyish”: good word!
Lester, charity galas and fundraisers tend to like black tie stuff, and if you want to save the world for little aminals, ya gotta don the penguin suit from time to time.
In Oregon, Wisconsin, we don’t have charity galas. We have bake sales.
That makes a lot more sense and sounds a lot more fun, Lester.
In my neck of the woods I’ve noticed all the charming, but older and smaller brick bungalows that have been scraped off to make room for giganticsm and McMansions are now sitting empty. Yet, scrape offs still continue, even of perfectly fine homes (which may need a little TLC). They are just too small for the bigger is better crowd. It appears that no one can afford the 1.2 million dollar price tag. I still see everyone driving SUV’s and gas hogs though and construction has slowed. I walk a lot and have always been more mindful of my purchases. This is partly due to values, lifestyle choice, and also necessity. I predict that when the price of oil declines, people will be back to their old ways and the current “green movement” will be yet again another distant memory.
I predict that when the price of oil declines, people will be back to their old ways and the current “green movement” will be yet again another distant memory.
One of the many reasons I’m excited to see $200 a barrel.