Predictions for social changes post Covid,
In particular, social changes that may have a long term drag on our economy.
Greetings all, I was seeing on an economics blog several points about how there will be long term economic ramifications from this Covid crisis. Lower GDP, productivity loss, bankruptcy, etc. But what I want to focus on here is this:
What are the changes that you or others might make that will have a long lingering impact on economic conditions. And I don't mean this only in a negative way. Though you not spending money is positive for you, it might be negative for someone else. The reason I think there will be real societal changes from this crisis is related to that old saying "it takes 21 days to change a habit". Well, most Americans are going to have 21 days to change a habit. Whether due to stay at home measures or other social distancing. And (I think) everyone is going to be more mindful of their pocketbook during this time. So, let me make a few predictions and I would love it if you did too.
1, I think people will want to hold more in savings if they can. This will drive down consumption long term. My prediction number one sets the stage for the next predictions.
2, I think people will drink less fancy coffees. With weeks of not being able to go to Starbucks to get a 6$ (with tip) people will come to enjoy a simple home made cup of coffee, made peacefully in their own home.
3, brown bag lunches. Everyone has lots of free time on their hands right now. They will get back to prepping their own food and after a month of doing so will want to save money at the work cafeteria or avoiding getting take out at work.
4, after school activities. Jr and Ms have sure been enjoying karate and dance class. But just being at home with the family has turned out to be enjoyable too. The habit of racing to pick one kid up from school to deliver them to a class while a spouse runs the other around, once that habit has been broke, who wants to go back to it?
5, exercise classes at 70-100$ month minimum. New habits will be formed, walking, running, lifting weights in your own home. Push ups, sit ups and burpees will be all the rage.
6, gray hair and simple styles. As a stylist myself I am imagining how my clients that needed a trim every 4 weeks are getting by. Roots that needed to be done at 4 weeks are going to have to wait until 10 weeks. At least here in Minnesota. I expect a lot of 60-70 year olds will take this moment to go gray. And opt for simpler styles that don't need monthly maintenance. Oh yeah, and weekly blowouts- my guess is that many of the weekly types will transition out of that.
7, people might even to decide to wash their own car,
and last but not least,
8, gardens, chickens and other forms of self sustenance. What a perfect season for those who do have time on their hands.
So I am curious, what do you think will be the societal changes that might impact long term spending habits?