Andrew Sullivan points to a new Ipsos/Reuters poll about how consumers in some two dozen countries are cutting back. Makes logical logical sense, on the face of it: Consumers are cutting back most on discretionary items like entertainment and vacations. But if we’re going to someday build a new kind of economy based less on durable goods – the old housing-auto, fordist industrial complex so to speak – and more around experiences, personal development, new technology-based and creative industries, the massive slashing of entertainment spending does not bode well for the longer-run. This may simply be an issue of wording: People likely see “entertainment” as a broad catch-all category. And the fact that education is holding up relatively well is a good sign.
June 8th, 2009 at 6:55 pm
This fits with the struggles of so many performing arts organizations, especially large ones. The Oregon Ballet is on the verge of folding. Lots of others are cutting their budgets dramatically.
There may be a bright side, if people still support or move to the kind of DIY entertainment and recreation the Creative Class seems to favor, being engaged rather than impassive in our entertainment. Fewer $150 tickets, more street performers and small companies.
I also think there’s a qualitative change that may be longer lasting. If people move from a new car every 3 years (do people still do that??) to every 6 or 10, it won’t make GM huge again but will be less wasteful. In my case, I think we’re probably moving from 10-year to 15-year replacement, unless something goes bad. Same thing with clothes, etc.
The stimulus funding for insulation will probably do more to cut energy use than auto fuel economy in the near future. This was started in the 70’s and dropped after Carter, an incredibly shortsighted move.