Recession, depression, and a renaissance of American corporate culture/consumeri

[russell]

I'll say right away that I'm neither making a statement about the current economic situation's usefulness, badness, or anything; rather, I'm speculating on a possible outcome. Please reply accordingly.

In the midst of economic "crisis," we're assailed constantly with ideas and images of nationwide job loss, foreclosures, failing banks, unavailable loans, etc. While there is definitely a huge amount of loss and generally negative effects, I think most people neglect a very likely (and positive) long-term outcome of the present situation, if it were to continue. This very likely and positive outcome, I think, is a reinvention of American market economy, consumerism, entrepreneurship, and creativity.

This "reinvention," or renaissance, as it were, will result from the loan crisis snowball effect that we are currently experiencing. As people fail to make payments, banks and businesses fail (to put it bluntly), resource costs increase, and the national currency faces inflation, some key things begin to happen ââ,¬â€œÃ¢â,¬â€œ namely, that people focus on necessities and basic needs (like making the next mortgage payment) instead of superficial activities. A second and equally important occurrence is the loss of jobs across the country, in almost every industry, resulting (obviously) in a growing population of capable, unemployed citizens.

As people attend job fairs in masses and apply for any job they can find, more and more will eventually change direction and start their own small businesses, or other means of making money. This is hugely important since, if it happens, it would signify the end of an era of rulership of working masses by national corporations, and a new period of small business growth and entrepreneurship. And this is where the reinvention of American culture comes in. But first, why this will happen: mainly, because when goods become expensive and businesses have cut their profit margins as thin as possible and still cannot survive, there are two ways to succeed, and these are customer service and creativity. Because of the way huge companies are setup, achieving either in the face of bankruptcy is unlikely, and most of their boards would simply elect to cut their losses, liquidate, and try something new (or live off of their million dollar bonuses). Thus various markets will be more open to startups and local businesses that focus on people. 

This should all be facilitated by the growing incompetence of auto makers and scarcity of fuel resources (not to mention everyone's shallower pockets), which is already leading to a massive increase in the use of public transportation and decreased activity in suburbs and developments. In such an economy, suburban population centers with their commuter shopping centers and sprawling housing developments simply are not practical, and people will prefer to populate city centers with friendly and local businesses (as well as jobs) within short distances.

So, about the "reinvention of American culture." At the figurative end of it all, we have

- a massive INCREASE in urban development, local business startups, and community closeness, and
- a DECREASE in inefficient housing (ie suburban wastelands), dominating corporations, and superficial/useless industries
- and finally, as a result, the all-important shift away from the falseness of the "American dream" and toward a new period of economic prosperity focused on communities and mutual growth. 

[anus]

I like the idea of small businesses, and it is happening, but we live in a capitalistic economy; eventually, years down the road when the economy goes upwards, one incredibly successful small business (there is bound to be at least one) will expand into a huge Wal-Mart-type business; huge corporations will likely make their return; hello capitalism.

Plus, in my opinion, people are more concerned with their wallets than the scarcity of resources; a minority believe in the vice versa. When gas prices go down, as they are doing now, people get excited, especially when faced with the daunting prospect that earth-friendly materials could potentially cost more out of their wallets.

But as long as America is capitalist, the notion that the nation could just be a bunch of small businesses, although ideal really, won't happen.

[FAMY2]

 Where will people get the money to start these small business ventures?  With credit so tight and funds so low most people don't have the financial means to start a business.

[sans culottes]

The growth of small businesses into corporate empires is inevitable, but I still agree with you - this can have positive long lasting effects.