The collapse of the credit bubble will reshape the United States’ economic landscape. Here’s a quick rundown of some of the things that are on the way up — and on the way down.
| Hot | Not |
|---|---|
Tourism. It costs less than ever for foreigners to spend a week or two visiting the United States. |
World travel. If you only have U.S. dollars to spend, it will be hard to visit most countries. |
Fitness. People are taking more responsibility for keeping themselves healthy, knowing that if they fail, there may be nowhere to turn. |
Health care. Prices for drugs, surgery, and even diagnostic tests are rising so quickly that soon they will be mostly beyond the reach of most potential medical consumers — and beyond the scope of most health coverage. |
D.I.Y. When all else fails, if you want something done, you still have the option of doing it yourself. |
Financial arrangements. Loans, insurance, and retirement savings aren’t as reliable as they used to be. |
India, South America, Australia, New Zealand. Areas that largely avoided the global problems of the last five years will have a chance to take on more leadership roles. |
United States, Europe, China. Closer to the center of the financial troubles, people will spend a significant part of their attention adjusting to new ways of doing things. |
Food, transportation. People will make the essentials of life and work a higher priority, even as prices go up. |
Climate control, clothing, furniture, equipment, haircuts, television, formal education. There is already a massive slowdown in non-essentials as businesses and consumers try to make their budgets work in a low-credit world. |
Retail. When it costs more to drive, consumers make fewer visits to stores — and that means fewer impulse purchases. |
Online music, movies, and games. People who don’t have extra money to spend suddenly won’t mind the hit-or-miss quality of free online entertainment. |
