LuvOrlando
DIS Legend
- Joined
- Jun 8, 2006
- Messages
- 21,461
I bet there would be more confidence if data was more revealing about the sorts of jobs that were lost & suspect many jobs lost are more tertiary and dependant on disposable income. This is no less tragic for those who have lost jobs, but it would point to the idea that these lost jobs will be quickly recovered once the vaccines take root, people begin to feel safe and we all start spending again into a new roaring 20's. Those who have steady jobs will start the ball rolling as people venture out slowly, locally at first and then spread out.For people who wonder if the economy will come back when this ends, the day I found out I was getting vaxxed, I booked a ten day vacation.
Well, I think that travel will certainly get a big bounce from the vaccines. Overall though, I believe consumer spending was down a bit for the year in the U.S.....albeit rebounding in a big way in Q3. I think what we're going to see if money moving from one bucket to another within that consumer spending umbrella. So...like you, we'll definitely spend more on services once we're vaccinated, but less on consumer goods as we did throughout the pandemic.
I own a decent sized pet care business in my area (pet-sitting and dog walking), and so I can definitely tell you that people in my area, for the most part....are not taking vacations. This past week is always the busiest of the year for me with respect to vacation travelers....this year.....not so much. And because I service so many homes with NYC commuters....I can tell you they're not doing that either in large numbers. So I have hard data on that kind of thing in my area anyway.
Where are they spending? They're spending on "stuff" for their homes. People are doing big home upgrades, both inside and out. And just buying lots and lots of stuff. We did the same here, with lots of spending on our back yard, front porch, etc. We didn't spend nearly as much as we would have on vacations, but we spent much more than we normally would have on our home in a regular year.
So I feel like money, for those who have not suffered big job losses/financial difficulties, will move from one bucket....to another. But...being on the service side of this economy, I for one am happy to hear that you're planning on a 10 day vacation....as are the people who work for me. I've only been able to bring back two of my six people, and just part-time.
This is why I feel the doom and gloom for 2021 is nonsense, once the vaccine is in place we will be the roaring 20'S.
Service spending is good because it's immediate and greases the wheels in someone's immediate community and then those people continue to move it within the local area, since we don't manufacture here buying stuff doesn't help a local community.
I expect contractors will be up for both remodels, (2 neighbors just redid bathrooms) and new home construction (I can see 3 complexes going up near me now, two are 55 + and one is a huge collection of colonials, not to mention the new builds within existing newer communities) and these are just the places I see as I go on my weekend drives. There are also no more homes for sale in my neighborhood and when they hit the ground in the area they are gobbled up, this is great because the tax authorities won't suffer the downturn, new owners mean no lost revenues since taxes are often paid within the sale (certainly liens must be settled) & buying a home usually means at least enough liquidity to make it through the year. Suspect the new buyers will be bringing in contractors, decorators, painters and such as soon as it's a bit safer to have workers in the house, landscapers will see a buzz in April. Also great because those who lost jobs will be able to sell their homes before they get underwater and then ride out the hiccup until the services sector completely recovers, best guess is around July because these are quick hires, cash in cash out to employee type businesses. I'm seeing lots of people picking up small jobs through Nextdoor, stuff a real contractor would never agree to do because they are high touch but low money. Seeing businesses pop up to clean out homes and reorganize, others running errands sort of like couriers because they can adapt their prices in a text. The blue collar work is what makes the world go round. As long as the payments come through to float people from now until the vaccines are mainstream there will likely be an incredibly robust recovery, I see no reason for doom and gloom for the future we just need to let the dust settle.
The vaccines will change everything.