The U.S. National media has done a great job in perpetuating a doom and gloom scenario for the next couple of years.
I do agree that things are tough, but as I have commented before, we are headed backward into the ‘70s.
For those of you who remember, the ‘70s, the world operated via cash and little credit. The last 20 years of economic expansion has allowed us to operate via credit and little cash.
We need to get used to operating via cash again, just like we did in the ‘70s. I trust disco will not return in this time.
I stress the importance of learning to plan and strategize how in fact we will use cash because whether we like it or not, times will get tight.
Notice how I said tight and not tough.
Tough will be for those of us who do not plan, tight will be for those of us who have the vision to plan and ride this out so we can come out ahead when it’s all over.
After all, that is what business is right? Survival of the fittest.
I can appreciate an article via the Associates Press today where we are doing a great job in reducing our dependency on credit.
For someone like me, this article is an indicator of good things to come…if we plan.
On another note, I have noticed over the last two months that as consumer spending is lower overall, we are still in business and our businesses are still making purchases.
Yesterday, I was in a Los Angeles Staples store to see that small business owners are still buying things.
Not only are they buying things for their businesses, but they are buying big ticket items like printer/copiers.
I asked the manager of that store is she has noticed a decline in sales and she said no.
As a matter of fact she said that this last Sunday was their largest sales volume they had seen in months.
Hmm. Is the media scaring us into managing our cash?
If so, good job.
I was also in Atlanta Georgia in November at another Staples store and noticed similar spending.
Bottom line is that we are going to go through difficult economic times, but we have the choice to make them tough or tight.