I’ve been watching with interest the impasse over the debt ceiling in the United States.
Traditionally, the U.S. has been the country that everyone looks to in times of need, be it for economic reasons, military reasons or other reasons.
To think about the Americans on the brink of default is unbelievable as is the fact that they’re fighting over this because all it does is bring the world’s attention to it. If they’re running out of money, then people wonder what’s going on in other parts of the world and they already know about the European debt crisis.
It’s tough to hear, especially after we got in a spot a couple of years ago with the economy and now, we’re starting to hear the same things again.
Besides the American and European debt crisis, we’re also hearing that house prices may start to dip. For years, we’ve been taught that our homes are our back-up plan, so if we start losing equity on our homes, it’s one more thing in the back of consumers’ minds.
When they read the headlines, bad economic times become a perception. Even if people haven’t lost their jobs, they may decide that it’s time to cut back on their spending, especially on big ticket items. The same thing happens if the prices of their homes are reportedly going down.
It makes people cautious about discretionary spending, which is what the golf industry is all about.
Personally, I’m not thinking that house prices are going down or that the U.S. is going bankrupt, but there is that perception out there.
It’s the golf consumer that you worry about – if they read 15 things and each one registers negatively in their minds, you start to wonder how their perceptions are not only going to affect the overall economy, but also the golf economy.