There is a new economy emerging. With so much retirement money disappearing, we will see, in the future, people who should be retiring, instead working into twilight years. This, plus the inevitable disappearance of middle management positions, will create intense competition for entry level jobs.
This may seem like a bleak outlook; it is bleak for those who lost life savings, but what it really means is a new opportunity for those who recognize the coming changes in the economic landscape. Where do felts fit in here? Just a minute and it will all come together.
In a depressed economy, people still need to eat and play. Education will not cease. But there will be a change in what people can and will afford. In economics, there are normal goods and inferior goods. Normal goods are products and services that people buy when income is good and they can afford what they want. Inferior goods are cheaper products and services that appeal to those who cannot afford the expensive option. The word inferior does not mean it is not good—quite the contrary. Inferior means specifically that it is a cheaper alternative than the "normal" choice.
As you can imagine, in the 1930s, lobster tails were probably not the most popular menu item in an average restaurant. Maybe macaroni and cheese. I like macaroni and cheese. I do not think of it as inferior. But in economic terms, the mac and cheese is the inferior good. And those who would sell the cheaper alternative would prosper.
Now do you see where felts come in? We do not sell a product that requires an expensive game console that must be upgraded each year. We are selling an inexpensive product that is educational, can be played with by boys and girls, moms and dads; older sister can pass it down to younger sister. They do not go out of style or run out of batteries. Remember, "inferior" does not mean poor quality, it simply refers to the more inexpensive product. I realize that the economy is changing. And our inexpensive alternative to expensive toys will be increasingly popular as the times change.This may seem like a bleak outlook; it is bleak for those who lost life savings, but what it really means is a new opportunity for those who recognize the coming changes in the economic landscape. Where do felts fit in here? Just a minute and it will all come together.
In a depressed economy, people still need to eat and play. Education will not cease. But there will be a change in what people can and will afford. In economics, there are normal goods and inferior goods. Normal goods are products and services that people buy when income is good and they can afford what they want. Inferior goods are cheaper products and services that appeal to those who cannot afford the expensive option. The word inferior does not mean it is not good—quite the contrary. Inferior means specifically that it is a cheaper alternative than the "normal" choice.
As you can imagine, in the 1930s, lobster tails were probably not the most popular menu item in an average restaurant. Maybe macaroni and cheese. I like macaroni and cheese. I do not think of it as inferior. But in economic terms, the mac and cheese is the inferior good. And those who would sell the cheaper alternative would prosper.
In times of change, those who are informed can position themselves ahead of the curve and prosper. We are already there.
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