Full Recovery Relies On Us, the Consumer

I want to stay positive about the future of our economy. I really do. I think its necessary for recovery. We need to believe that it will get better, that it is getting better, in order for it to get better. Full recovery relies on us, the consumer. But its difficult when you start to experience first hand things you imagined were part of the Great Depression, today.



Last month I was alone in our office in downtown Dallas. The door chimed so I headed to the front. A young man had walked in off the street to inquire about filling out a job application. I told him we were a small marketing company and we didn’t have anything available to which he responded “Miss I’ll do anything – janitor, courier, mailroom. Anything. I just need a job.” I apologized and again told him we had nothing to offer him. He politely thanked me for my time and as he turned to walk away I noticed a rolled up classified section all scribbled up hanging out of his back pocket. My heart sank.

A couple of weeks ago I was leaving a chain drugstore when a young man knocked on my window. “Miss I’m not going to hurt you. I just need to ask you for a favor.” I hesitated so he held up his ID to my window and I rolled down my window. He must have been 18, max. “Miss, is there anything I can do for you? Wash your car? Rake your yard? Mow your lawn? Anything?” I proceed to tell him no, to which he held up a Fiesta Shopping bag containing a half loaf of bread and a bottle of Dr. Pepper. “Miss, what I really need is a job. I'm unemployed and just trying to get by. I mowed this little old lady’s yard and she gave me $5, which I used to buy this. I could really use some bolonga to go with my bread, so I can get by.” I hesitated, told him I didn’t have any cash but if he wanted I would go into the store and buy him whatever he needed. So we proceeded into the store on our quest for cold cuts. When he noticed the price tag – $3.99 – he was shocked. “Wow. That’s expensive Miss. I can’t let you spend that. I’ll figure something out. Thanks though.” And he walked away. I grabbed the ham, paid, and found him outside. “Hope you’re not allergic to ham. Pay it forward.” He thanked me to no end and as I pulled out of the parking lot I noticed him sitting by the side of the building eating like there was no tomorrow. My heart sank. Again.

We believe we are being smart, playing it safe by cutting back our spending and saving for the storm that may lie ahead. Inadvertently what we’re really doing is fueling the storm. We don’t spend, sales decline. Sales decline, and layoffs begin – at stores, at factories, at transport companies, in marketing, and it just snowballs from there because we’re all interconnected. Laid off workers can’t afford to buy their dream homes so the real estate and mortgage industries is forced to reduce their workforce. Laid off workers living off of unemployment or savings have to stay on tight budgets to survive, causing sales to go down again. And the vicious cycle continues – click here to see it in action. I’m not suggesting we go hog wild and spend uncontrollably. I’m just suggesting that those of us who are fortunate to still have our jobs consider the consequences of our choices. Yes we should be cautious, but we should also spend wisely for recovery. Just a thought.