Everyone knows 70% of US GDP is from consumer spending. Yes, we have been very "spending-dependent." We maintained the world's best economics by utilizing credit system and according to a study (forgot the source) average American has 12 credit cards in their pocket.
After all, it was the credit power that led to boom in real estate in 2006-07, and collapse in 08 and later. Too laxed credit availability provided much fund to be used by subprime leasee.
Now, here are the aftermath:
(Source: Yahoo! News "HotJobs" http://hotjobs.yahoo.com/career-articles-10_job_sectors_in_decline-1090)
10 Job Sectors in Decline by Margaret Steen
1. Department stores: Projected to lose 10.2 percent of the 1.56 million jobs they had in 2008.
2. Semiconductor manufacturing: Projected to lose 33.7 percent of the 432,000 jobs it had in 2008.3. Motor vehicle parts manufacturing: Projected to lose 18.6 percent of its 544,000 jobs.
4. Postal service: Projected to lose 13 percent of the 748,000 jobs it had in 2008.
5. Printing and related jobs: Projected to lose 16 percent of its 594,000 jobs.
6. Cut-and-sew apparel manufacturing: Projected to lose 57 percent of its 155,000 jobs.
7. Newspaper publishers: Projected to lose 24.8 percent of its 326,000 jobs.
8. Mining support jobs: Projected to lose 23.2 percent of its 328,000 jobs.
9. Gas stations: Projected to lose 8.9 percent of its 843,000 jobs.
10. Wired telecom: Projected to lose 11 percent of its 666,000 jobs.
With fewer people earning money (or, people making less money to spend) from work, there will be less to be spent, and moreover, less to be invested.
Look carefully on these 10 jobs and consider the industries that these are in are having very tough time. If the industry is NOT doing well, you won't have chance to win back when you make a mistake. If the industry is doing well, however, you will be much easier to come back when you make a mistake.
