I mentioned this topic the other day here.
Of course, this along with layoffs are reasons people seek business opportunities. It’s been that way since the Great Depression!
Speaking of which, maybe we should call this the Slow Silent Crash, the kinder, friendlier form of a Great Depression.
Unlike the Great Depression, we have mechanisms in place to ease the descent so that it’s a slow crash – even a well disguised crash.
This time, the crash is coming through quiet desperation of inflation instead of the quickly escalating panic of massive bank closures.
Banks don’t close overnight “bankrupt” any more because they just get new shipments of money in to pacify the customers.
The only person on the national level shouting that the “Emperor has no clothes” is Ron Paul.
In the Slow Silent Crash people still have money in their wallets, it just doesn’t buy anything at the grocery store or gas pump.
The politicians crow about a “low cost of living” and by their count “low inflation” because the price of computers and technology is dropping and PC’s are cheap. You hear this and scratch your head wondering how they think you’re going to actually eat your PC or if the gas station will take one in trade?
Home businesses will continue to proliferate… they’ve got to for people just to make ends meet when politicians keep trashing the dollar to bail out their friends.
Richard on November 13th, 2007 at 7:25 am
You infer many home businesses will be created because of the economy. Do you think the home businesses created from this turmoil will be successful? I don’t think they will. I don’t see how someone entering business under duress can be successful. There will be exceptions but overall I see people experimenting with home businesses for a year or two and reenter the labor force as an employee. I’m not trying to be pessimistic just realistic.
Chuck on November 13th, 2007 at 8:36 am
Actually Richard companies and businesses that start and survive hard times have a better chance of lasting because they didn’t emerge in a flurry of hype. Consider the “dot com” fiasco where investors were throwing money at anything with “dot com” in the name. Companies like WalGreens that had been around for years during thick and thin won out.
Obviously many prefer steady employment. But in many rural areas people always have a side business going because they are used to the downturns. In rural areas where many have income linked to a harvest, there is an annual downturn that encourages side businesses.
As the downturns hit the urban areas, there is more incentive for side businesses to occur though most people would prefer employment and, as you suggest, likely would go back to a full time job.
At some point everyone who likes to eat is under duress… even if it’s the duress of going to a job.