The signs of an economic down turn is becoming more evident! Is there not a better indicator than the article provide by Yahoo! Fiance in today's July 2nd, News & Opinion section about the economic turn down. Starbucks the GREAT giant of a coffee place, where people can meet, socialize, and enjoy a cup of true blue brew coffee, in an atmosphere unmatched by any other coffee provider/competitor - WHAT? Closing 600 stores in 2009. What better sign that the US economy is feeling the pain. Because I know I haven't EVER consider Starbucks as a place to spend my money. I do NOT like coffee and by personal preference and belief, I do NOT think it is a preferred choice by many of my faith. The preferred drink that has always been refreshing has been the great, overlooked drink we call, "Water"! That's right! In the Periodic Table this wonderful drink is call 2 parts hydrogen and one part oxygen (H2O).
Getting back to the economy....Starbucks closing 600 stores and cutting its workforce in 2009 by 19% of all it US company-operated stores tells that there is not only a financial system credit crunch, BUT more importantly, there is a home finance extra cash crunch!
I have been telling my students that when Starbucks begin to close their doors, this is a sign the economy is really hurting. This remark brought about a sense of respectful anger in my high school class. Students throughout the US (mine only being a microcosm) do not realize that the spend and lend mentality of America is coming to a closing chapter. America as a whole has been unwise, greedy, and most importantly, arrogant that the world can continue to produce a majority of world resources for our glut.
As I have written in previous blog postings, the signs were evident with New York in the spring accepting Euros instead of the US dollars only. Yesterday, afternoon, I was having a wonderful get-together with neighbors and their aunt was from El Salvador. Yes, El Salvador...I found to my surprise that their currency is the US dollar. I asked if they had an El Salvadorian currency? The response was, they use to but it was too weak so they begin to use the US dollar as their country's currency.
One can look at the actions of El Salvador as either good or a poor choice. But, I guess being an optimist, it is a good thing. Why? Because if El Salvador uses the US dollar as their country's currency, then if the US economy is strong, then El Salvador's economy is strong as well. If the US economy, as it is currently, is in a downturn, then El Salvador will be also.
In the past, this was not a concern, but today, with the financial meltdown that is happening in many financial sectors of the US economy, El Salvador will feel the pain as well.
There you have it, Starbucks to close 600 stores in 2009, with about 19% of its US stores being shutdown, tells much of what is happening in the US home - a shrinking expendable income, or if the changes are not corrected in the home, financial turmoil will begin to strain the pockets of the US consumer.
As, I figure it, it will be a painful experience for the US consumer because the habits of people do NOT change as quickly when done on their own; however, if circumstances in one's environment has been altered, then usually without individual choice, people will have to make these tough decisions or suffer severely into financial chaos.
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