The recession has caused a turnmoil in the many different sectors of our worlds economy. It has left many nations struggling to get out of it through numerous money schemes. Such as pumping more money into the economy which is a good thing but it might lead to an increase in inflation later on. Other than that, numerous people are now struggling daily to meet ends meet. However, despite the recession there are some things that we should take note as it might work to our advantage...
7 Happy Things Caused By The Economic Downturn
1. Homes
Since the housing market peaked in the year 2006 , home prices have tumbled 27% and some analysts say they'll fall 42% before they start to rebound. The S&P/Case-Shiller index shows prices were down 18.5% in December from a year earlier.
There are two pros here, depending on your situation: First, interest rates are very very low right now. Secondly, if you're liquid, meaning you have a lot of cash in your hands just lying around collecting dust it's a good time to buy for future a investment when the economy recovers. It is advisable to wait though because the prices are expected to drop further.
2. Tech Gadgets aka Electronics
Over the past few years the prices on electronics have been decreasing. The Consumer Price Index puts it in perspective: Computers cost 87% less in January than they did a decade ago, when you take into account upgrades in quality (such as processing power and memory). TVs were 79% cheaper.
For example, the average prices for computers were 12% less in January than they were a year ago; TV prices were down 21%. And the price index's numbers don't even reflect improvements and technological advances -- no small potatoes. So if you've been itching to update your tech gadgets stash now's a good time to do so. :)
3. Clothes
This is really good news for all shopoholics and people who love the four letter word 'Sale'. Those really really cheap clothing prices you've been seeing in department stores are for real. Prices for women's outerwear have decreased by 23% over the past 10 years and 12% over the past five years, according to the Consumer Price Index.
The decline is due partly to low-cost imports, but the more recent drops are likely tied to recessionary belt-tightening. Apparel prices in January were down 5% from a year earlier. A pair of Levi's 501 Original jeans cost about $50 (about $66 in today's dollars) in 1998; they were $46 in early 2009.
4. Cars
This is really really good news for those who need new wheels to get around in today's modern concrete jungle :) The Consumer Price Index shows that used car and truck prices have dropped about 17% over the past decade and were down 9% in January from a year earlier.
However with new cars the decline isn't as fast. The price of new vehicles dropped about 2.6% last year. But auto analysts in a recent JPMorgan survey noted that the average price of a new vehicle fell 2.3% in the second quarter of 2008, the largest single drop in the history of the 41-year survey.
5. Airfares
Travellers or does who want to travel have all the rights in the world to rejoice as airfares drop to an all time low due to the recession. It's called supply and demand, and the phenomenon doesn't bode well for airlines these days. The airline industry is in a tailspin, due first to high fuel prices and now to sagging ticket sales.
Ticket prices in January were down less than a percentage point from a year earlier, according to the Consumer Price Index, but some analysts are predicting a a bargains galore this year which might include bargains for flights abroad.
Travelocity reported in January that average domestic airfares for spring were down $24 year over year, to $369, with fares to Chicago down 17% and to Los Angeles, Salt Lake City and San Antonio down 16%. "Certain destinations have seen dips in price from time to time, but this is the first time in recent memory we're seeing declines across the board," said Genevieve Shaw Brown, Travelocity's senior editor. So if you are thinking about bringinh your loved ones somewhere nows the time .
6. Alternative Energy
First Solar, a thin-film solar cell manufacturer, broke below the $1-per-watt barrier in late 2008, creating electricity for 98 cents per watt. This is big news because it moves solar close to "grid parity" with other generators, meaning it could generate the buzz at the same rate as natural gas or coal. An oversupply of thin-film solar cells and silicon has led to a drop in prices which is very very good news for those who are looking to turn green to save planet earth.
7. Toys
The cost of having fun has decreased about 45% over the past decade, if you want to take the toys index of the Bureau of Labor Statistics as an indicator. Hasbro's Dream Life plug-in TV game, for example, costs $9.89 today, a cool 5 bucks less than it did in 2007. Sadly, this is only good news for the little ones and not very good for hardworking parents.
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