Helping Americans Achieve the Changes They Seek

Now that some government officials and economists are claiming the biggest economic downturn since the Great Depression is ending, we can expect the country to be well on its way to making a full economic recovery.

 

Now that some government officials and economists are claiming the biggest economic downturn since the Great Depression is ending, we can expect the country to be well on its way to making a full economic recovery. That’s what we’d all like to believe so that we can get back to “business as usual.” Even though the Commerce Department reported that the economy grew at a rate of 3.5 percent during the third quarter -- the best showing in two years -- many people expect there may be some additional detours and bumps to face on the road to recovery.

JPMorgan Chase economist David Hensley told USA Today in October that even though companies spent $879 billion for the third quarter, it is only at the same level as 2001. He said companies haven’t even been keeping up with depreciation.

On the Nov. 1 edition of NBC’s Meet the Press, Treasury Secretary Timothy Geithner said large businesses have been able to borrow money again and they can raise capital. He said more needs to be done to help out small business. Small business operators are more dependent on banks, and more has to be done to provide these companies with the credit they need.

 

Impacting consumers
What impact has the economic downturn had on consumer spending, which accounts for nearly 70 percent of the country’s total economic activity? Consumer spending fell 0.5 percent in September, which marked the first decline in five months. The Commerce Department reported that during the third quarter current-dollar personal income fell 0.5 percent after rising 0.6 percent. Real disposable personal income, which is income adjusted for inflation and taxes, declined 3.4 percent in the third quarter after increasing 3.8 percent in the second quarter.

In a survey conducted by Parade magazine about the changes in the economy and the impact they have had on Americans, 79 percent of respondents said they’ve felt the impact of the financial downturn. One third said the recession has had a dramatic impact on their lives. The result has been that Americans have made significant financial adjustments in their daily lives with most indicating they have cut back on spending. Most of the spending cuts are related to big-ticket purchases.
The Parade survey found that 68 percent of Americans believe it is important to create a meaningful life and to give back, with 83 percent reconsidering what they actually need in life.

The economic changes have caused Americans to make positive changes in their lives, including: devoting more time to learning new skills (43 percent), exercising more (43 percent), becoming more do-it-yourselfers (63 percent), connecting with old friends (46 percent) and forming stronger relationships with their spouses (52 percent). All of these changes are touch points for our industry’s products. Are we taking full advantage of showing Americans how our products can help them achieve a more meaningful life? Are Americans connecting with our products on an emotional level? 

 

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December 2009
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