Demand In the Information Age

Demand In the Information Age

by David Revill

You and I have more information at our fingertips than ever before. Just what and how to buy is laid out before us. I’m a massive user of Amazon.

I’m always looking for products to use in managing my garden. What’s the best water hose? What plants to buy? or compost bins to construct?

It’s all right here on the Internet. Not only can I find those items that the maker of the product has. I can also find reviews and instructions supplied by fellow shoppers like me.

The Internet has become my number-one “go-to place” to learn about new tips and techniques. I’m a better gardener, by far, simply by using the Internet.

And what’s true for me and my garden, I suspect, is true for most of us and for most items we purchase.

The Internet has instructed us all. It provided us with instantaneous information and allowed us to buy and sell all with unparalleled convenience. It has created one big happy “family,” if you will—United, if not by birth, then by interest and avocation.

And just like a family, we tend to make up our minds together. We accept similar attitudes and opinions. I note that a bad review on Amazon may cause certain products to decline in sales. In contrast, a well-written and informative review can boost sales.

This observation isn’t new. Others have noticed the unification of the world in this information age. Progressives like to throw around the term “Global Village.” It’s their way of leading us down the path to an egalitarian, Utopian society.

I agree with the premise of the Progressives that the world is coming together like never before. But I’m not headed there.

Today, let’s focus on what I’m referring to as an internet-connected “family.” Or, more precisely, an “economic family.”

Now, if you accept my premise that the Internet is creating one big happy economic family. Then we are looking at the potential for significant change in the coming months.

It is all because this vast economic family is changing their view of our future. The Economic Family (EF) began last year optimistically. Although it had been a rough couple of years, surviving the Pandemic. They were coping with a highly contested, controversial Presidential Election.

By the end of 2020, we were beginning to put much of that behind us. Shops and Stores were, at last, beginning to re-open. Masks were coming off, and people were getting out to dine at their favorite restaurant and browse at that unique boutique. Life was getting back to normal, and it was fun again.

Last year began with high hopes. The American Economic Family and our leaders in Washington appeared to be on the same page. Of course, multiple stimulus checks helped many of us through hard times and provided much goodwill.

But 18 months later, much of that goodwill has dissipated. Every day from the gas pump, to the supermarket, to the department store, we are brought face to face with higher prices and short supplies.

Three monthly surveys measure how the Economic Family views current conditions. All three surveys have been down dramatically since those sunny days just 18 months ago.

Today we will get the latest reading from Investors Business Daily on their Economic Optimism. Last month IBD reported that the nation’s optimism had declined by nearly 40% in that year and a half.

A little later this month, we will see the University of Michigan’s Consumer Sentiment Index and the Conference Board’s Consumer Confidence survey. Both were down roughly 50% when they reported last month.

These are stunning declines in overall consumer attitude. I don’t recall ever seeing such dramatic reductions in confidence outside of a national disaster or a war.

I believe we will see people stop spending. And the effect of all this is bound to be profound. People are out of cash and short on optimism for the future.

Yesterday we cited a report in Barron’s Magazine that car repossessions are way up as people can no longer afford the car payment. Anecdotal evidence from realtors reports that home sales are beginning to crater. Retail sales, too, are beginning to slide.

Put it all together and the tremendous economic engine that powers this country, consumer spending is coming to a halt.

You see, it is true. We have become a much more unified country. The Internet indeed has brought us together as one big economic family.

And right about now, we all feel like we are in a crowded theater. Someone just yelled fire. Look out below. We’re all headed for the exit!

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BIO

David Reavill

Financial Writer

writer + finance +iconoclast + hiker + Pennsylvania

#valueside
daily podcast + comment + thinker
valueside.com/links

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