Economy strong, just different.

LONG LASTING SHIFT IN PRIORITIES EVIDENT

SPENDING SHIFTS FROM SERVICES TO HARD GOODS

If you would watch the media debate about the economy you would believe we are in a deep recession or even a depression. While this may be true for the sit down dining, travel and hospitality business the spending seems to have just shifted to other areas.

Real Estate is booming with houses selling over the asking price and a new trend in virtual Real Estate sales. This is being fueled by low interest rates and a mass Exodus out of the major cities to suburban and even rural areas. There is much more demand than inventory of existing homes.

New Construction and expansion must also be booming because lumber futures have increased dramatically with shortages of building materials. Home improvement and hardware stores are having the best years as more people upgrade and work on their homes.

There are year long waiting lists for pole buildings and in ground pools.

Used car sales are also thriving with a shortage of good used cars. These prices have also risen recently.

Leisure recreation items are also in short supply, with boats, kayaks, bicycles, fishing and other outdoor equipment sales doing well.

Internet sales for all items is likely to become a permanent supplanting of brick and mortar retailers. People are buying, just in different ways.

Fast food is doing extremely well and these outlets have upgraded and adjusted to offer quick service. While the lines are long at places like Chick-fil-A they get the products out quickly.

While Nascar is running without spectators, local racing bleachers are jammed and participation by teams is as good as ever.

The stock market has regained all of its losses and indicates a positive view by investors of the future. Those 401K's and pension funds are again in sound condition.

The money that used to be spent dining out has just been reallocated to other areas. Many people who have continued to be employed have more disposable income with their changes in lifestyle. Those businesses who are in a position to provide for those changes are doing extremely well.

It may be a long time for business at sit-down restaurants, hotels and the travel industry to recover, if 

ever. Business travel has been reduced dramatically and has been replaced by Zoom meetings and other virtual formats. Much of that may never return.

Major cities economy's are going to be in dire straits. Between the covid outbreaks and the political unrest, their future is dim indeed. They are in the process of losing large parts of their tax base. This will be followed by business also leaving and the loss of that real estate and sales tax revenue.. They may be left with a large population of those who cannot afford to leave. 

While covid has disrupted the economy in a major way, it is evident that an adjustment and transformation has also occurred. Humans have always adapted well to changing environments. Necessity is indeed the mother of invention.