Every day there is significant news about our downtrodden economy. Sometimes its another 3 digit loss on the Dow, more layoff announcements, unemployment figures, or news of more bankruptcies. However there have been several things that really stick out more then some.
Below are five things that blow my mind about the recession.
1- Post Office Trying to Move from Delivery 6 Days a Week to 5
I came across this today. The post office lost about $3 billion in 2008, and may lose $6 in 2009, if drastic changes are not made. They believe Tuesday would be the best day to be skipped as its a lighter mail day.
“He asked a Senate Homeland Security and Governmental Affairs subcommittee to lift the six-day delivery requirement mandated in 1983.
“It is possible that the cost of six-day delivery may simply prove to be unaffordable,” he said.”
To be honest, I really don’t care. People depend on mail less and less while internal costs are on the rise. Lawmakers were not as enthusiastic on the idea.
2- Arena Football…No Mas
For years I continuously heard how much of a success as a business the Arena Football League (AFL) was. Bon Jovi invested as did John Elway in addition to several teams being added to the league. Games were on ESPN as well as NBC and it seemed as if interest, ratings, sponsorships, were on the rise.
That’s why it came as a shocker when news hit a couple months back that the league would suspend operations in 2009. Regardless that the 2008 season was by all means a success, they looked at the economy and crunched some numbers before deciding it was going to be a mistake to continue on in 2009.
To me, that is incredible. 2008 was supposedly a great year for the league. It’s as if the league was a chair and they saw the wobbliness of the legs underneath and said “How about I don’t sit down and break it forever.”
3- Print’s Very Ugly Death
Yes, not that as many people are reading magazine and newspapers. Yes, cutbacks are going to continue, but man o man print is dying a very ugly death right now.
The NYT is fighting off bankruptcy and is selling their stake in the Redsox. The Tribune company succumbed to bankruptcy and announced they will be off loading the Cubs . While these two large publishers have avoided disaster, many regional newspapers are moving to become only digital or shutting down completely.
On the magazine front, its worse. PC magazine, an office place classic, is one of many magazines going to only digital. Domino, is one of many magazines being dropped both as a magazine and website. I am also privy to a handful of smaller sports magazines that are close to ceasing operations.
For those who have survived thus far, the reality is that magazines are getting thinner and thinner due to lack of advertising. Below is a picture comparing 2 recent Wired Magazines. Yes, the binding in the more recent magazine is too wide for the pages.
4-Military Enlistment is up…
There are reports all over the country. Soldiers are willing to do extended tours of duty and enlistment numbers have climbed dramatically over the past 3 months.
While its intuitive that a recession will help in military recruitment, I thought being involved in 2 conflicts in the Middle East would cancel out the attractiveness of enlisting. Guess not.
5- Starbucks May go Bankrupt
Circuit City, AIG, Lehman Brothers, Tribune Company, and WaMu are some of many major US brands forced to file for bankruptcy this past year. GM and Blockbuster are two others that are allegedly very close to getting pushed over the edge as well.
However, I had to take a double take upon hearing that Starbucks may find themselves going this route sometime in the near future.
Really? Starbucks? I mean it makes sense considering there were more Starbucks then seemingly anything else in the world. Still though this was like the huge success story of the business world over the past 15 years.
They are closing stores all over the US, but it may be too little too late as people are realizing they can be yuppies else for cheaper.
