Some businesses are obviously more prone to the effects of
recession than others.
Yet no one can be complacent. Even those that do not suffer
the adverse consequences directly may suffer indirectly as their customer base
Indeed, negative economic factors can impact on some
unexpected businesses in unexpected ways – and demand that they do the
unexpected in response.
For example, providers of what might be termed very personal
services are unlikely to see any falling of demand for their product in
hard times – quite the contrary, as some men seek consolation in strange
Nor should the expenses of static providers, like the
licensed establishments of Nevada, be increased disproportionately by factors
like rising fuel prices.
However, the increase in the price of fuel is hitting some
of those places very hard because it is hitting their customers very hard.
Whereas as those establishments in or near urban centres
rely on tourist income, those in more out of the way places, especially on the
Interstate Highways, are dependent to a surprising degree on passing trade from
Many of the truckers are self-employed sub-contractors with
their own rigs, who must pay for their own fuel. Rising oil prices leave them
with less to spend at recreational stops on the highway.
An industry famed for its imagination has responded with
positive marketing other businesses would do well to emulate – if not quite in
the same way! A range of discounts and schemes are on offer to tempt the cash
strapped trucker – including, most appropriately, complimentary fuel discount
cards with every, er, service.
At the same time, the recession is tempting an increasing
number of women to consider a career in that industry, thus giving scope to
Supply increases, prices decrease – it is yet another
vindication of classical economics.
Adam Smith would be proud... or perhaps not.