The laws of physics have not been replaced or repealed and yet in the business world times have changed.
In late 2007 we started to experience a global “financial crisis” that resulted in the bailout of the banking system by our national government and a down turn in the stock market. The current economic meltdown has reduced the American consumer’s wealth by hundreds of billions of dollars.
A recent Pew study reports that “more than half of the adults in US … have experienced some work-related hardship. … the wealth of the average
American household has shrunk by an estimated 20%.”
Financial times have changed and consumers have changed their lifestyles as a result. The current recession has forced an increased frugality. There is less discretionary spending for many segments of the population. The days of frivolous spending and buying on credit are gone.