One aspect that can be learned from past periods of economic downfall is; will cutting consumption help or hinder the economy? Cutting consumption has a direct effect on the fashion market. Personal consumption includes clothing, accessories, jewelry and all products put out by the fashion industry. When personal consumption goes down so to do retail stocks. The “passivity toward America’s decline” (Janeway.) in Professor Paul Kennedy’s book The Rise and Fall of the Great Powers brought about much criticism. His reply is that “we could always cut consumption” (Janeway). One must wonder how a blanket statement like that can be said without further explanation.
Americans are affected by the economy. To keep the standards of living the same the economy must remain on an upswing, but as we all know what goes up must come down. When the standard of living is threatened increase in savings is a form of self-preservation. When stock prices go down the owners begin to “feel less wealthy, giving them an incentive to cut back on personal consumption” (1987). Saving more means spending less on luxury items; a perfect example is higher class fashions. Reasons for trading the more expensive items in for cheaper price tags all lead back to a falling economy. The harsh reality is that times can go bad and a downturn can be harder on some more than others. The people in such a position cannot turn to savings to help ease their minds but must cut consumption to survive; buying only the necessities and the bare minimum at that. In today’s failing economy and numerous retail stores closing how much damage will cutting consumption cause to the fashion industry?
Works Cited
Janeway, Elliot. “Business Forum: The Slumping Economy; It’s a Bad Time To Cut
Consumption.” The New York Times 15 May 1988.
“Still More Wow! in the Dow.” The New York Times 17 August 1987.
-Stephanie Mastrangelo
Americans are affected by the economy. To keep the standards of living the same the economy must remain on an upswing, but as we all know what goes up must come down. When the standard of living is threatened increase in savings is a form of self-preservation. When stock prices go down the owners begin to “feel less wealthy, giving them an incentive to cut back on personal consumption” (1987). Saving more means spending less on luxury items; a perfect example is higher class fashions. Reasons for trading the more expensive items in for cheaper price tags all lead back to a falling economy. The harsh reality is that times can go bad and a downturn can be harder on some more than others. The people in such a position cannot turn to savings to help ease their minds but must cut consumption to survive; buying only the necessities and the bare minimum at that. In today’s failing economy and numerous retail stores closing how much damage will cutting consumption cause to the fashion industry?
Works Cited
Janeway, Elliot. “Business Forum: The Slumping Economy; It’s a Bad Time To Cut
Consumption.” The New York Times 15 May 1988.
“Still More Wow! in the Dow.” The New York Times 17 August 1987.