BBQ for the Recession!

courtesy of thereifixedit.com

Charged With Guilt

An entire generation of kids raised during the depression grew up with modest spending habits and their materialistic impulses seriously in check. Expectations were low, gratitude and humility expected. As they reached adulthood, stability was the assumed aspiration, and living within limited means was the status quo.

Then that all changed.

For the baby-boomers who came to dominate the U.S. social sphere a generation later, raised in the post WWI economic boom, the status quo evolved to "financial security" and "comfort," which were, arguably, simply euphemisms for wealth.

The consumer culture of these different generations evolved to fit the economic context of each. But spending patterns aren't all about practicality. Emotion and subjectivity find their way in; there's guilt, shame, pride, and euphoria; cultural mores are injected into every thought and behavioral pattern around consumerism.

According to Sarah Kershaw of NY Times Magazine, 95% of neuroscientists and behaviorists say that our decision to purchase or not to purchase is borne of a complex biochemical phenomenon that occurs deep within our subconscious.

Unless eclipsed by a major source of anxiety, big purchases tend to release dopamine, which triggers feelings of euphoria and chases away guilt and regret. But in a recent study done by David Lewis of Mindlab International, even upper-class consumers, who have held on to their wealth - and purchasing power- in the recession, experienced anxiety and hesitation in response to luxury goods. Before the recession those same high-end items elicited only positive responses-excitement, arousal, and raised attention levels. Instead, they now experience "disgust," according to the study, and consider the consumption of these high-end items irresponsible and even immoral given the state of the economy.

Professor Kit Yarrow's research that this mentality will not fade with economic revitalization. The results of his post-recession consumer surveys suggest that this newfound moral doubt over expensive taste is here to stay. Other researchers believe that this group-think will evolve like any other; that brain patterns are cyclical and soon dopamine will rule again.

Wal-mart Wins Again

This recession has turned even the Japanese into Wal-Mart shoppers.
As long as most of us can remember, the Japanese have been such faithful consumers of luxury goods that items like designer handbags were effectively considered mass-market. Perhaps for this reason, Wal-mart has never yet seen a profit from its Japanese subsidiary (Seiyu) since first opening the stores 7 years ago.
But that is soon to change. Against all odds (popular consumer opposition, resistance on the part of employers) the company dug in with its pointy little claws and stayed the course, waiting for its luck to change. It's business plan included forcing layoffs of about 25% of the store's employees (an unheard of practice in Japan), aggressively cutting out distribution middlemen, mandating that stores remain open for 24 hours, and pushing historically unpopular and lower-quality goods from China.

Sure enough, Wal-mart's luck has changed in Japan, much as its wealth this past year has grown at a rate inverse to that of consumers worldwide. Sales at Seiyu have risen every month since November, and this year, the company expects to make a profit. Congratulations, you blood-sucking parasite.

Meanwhile, handbag designer Louis Vuitton canceled its plans for a fancy new store in Tokyo, as the company's sales in Japan have dropped 20% in the first 6 months of this year.

Frugal Brooklyn

Last week, Brooklyn was named the most frugal city in the U.S. by Mint.com, based on discretionary spending figures. Of course, since the numbers correspond to the percentage decrease in spending since 2008, it could just mean that Brooklyn was one of the most outta hand back in bull-market 2008...

Either way, its a great graphic and is fascinating in its specifics, charting how much each (at least, each of the 5 least frugal) spent on clothing, books, electronics, hobbies, and sports respectively (Chicagoans love them some books). I wish they had broken it down for the most frugal as well-could be a very interesting comparison.

Blackout Film Festival: The Great Recession

In 2004, Tom Keefe founded an annual film festival inspired by the blackout of 2003. Each year since the Blackout Film Festival team has chosen a theme, "a topic that touches the lives of everyone in our community " according to the website, and have called for submission of film shorts on that theme.

This year the theme is The Great Recession, and the program will include shorts such as Wall Street Chicken, a satire featuring a massive pillow fight in the streets of the Financial District, as well as more somber films like Bridge, in which a woman returns home to find her mother missing and her house in foreclosure.

So today at 3PM, 5PM, or 7PM get down to the School of Visual Arts Theater at 333 West 23rd St. between 8th & 9th Ave. The 90-minute program will be shown at each screening and tickets are $12 in advance or $14 at the door.

Heroes of the Recession 2: Men Who Wear Clean Undies

In his 2007 book The Age of Turbulence, Alan Greenspan proposed that the sales figures of none other but men's underwear may serve as a particularly insightful economic indicator.

He says that manties are historically among the most steadily consumed products out there. Their sales figures are almost always a flat line: underwear is nothing more or less than a necessity for men; they buy em when they need em, and generally they their girlfriends and wives do replace their undies when they've gotten old and ratty.

So usually, since undies don't represent a major expense nor a frequent purchase, they aren't among the items cut from the family budget when money gets a little tight. But as Greenspan's theory has it, in times of true hardship, men do start to skimp on their skivvies, making do with dingy pairs so that they can afford, say, toilet paper.

So, here's the good news: Hanes brands just reported second quarter 2009 sales at a decline of 4%. If you think this figure seems as gray as those ratty undies you're wearing, think again. This is actually a significant improvement, as sales declined by 13% in the first quarter. Manty sales are up, people!

So let's give it up for those men who care about what's on the inside - or at least, what's underneath. May their increasing manty purchases lift us from recession and deliver us from depressing laundry days!