Recession Tradeoffs
In a recession, we all cut back on spending on major purchases, like a car or a new house. Often though, we ‘trade down’ and buy something of lesser quality since we are all less rich:
- We eat a hamburger at McDonalds instead of a steak at Outback.
- We watch a movie instead of going to a sports game.
- We shop at Wal Mart instead of anything that is higher end.
- If we’re getting married, it’s going to be a cheap wedding, not a luxury wedding.
- We may not even buy coke, we buy generic brand soda.
I’ll make a new post with some more of these when they come to me.