The NYC strike may curb indebtedness?
December 22nd, 2005 | by mbhunter |First off, I really have no concept of the disruption that the subway/bus stoppage in New York has caused. At the very least it’s a pain in the butt, and at worst it’s presenting financial hardship and personal danger to people whose livelihoods, or lives, depend on the subways and buses being up and running. For everyone’s sake, I’m praying that this is over soon for you all. It’s clear that the strike is hurting businesses in the city at a time when the income is expected to make up for the leaner times of the year.
What caught my eye, though, were the daily monetary loss figures quoted by the media. Several hundred million dollars a day.
The study referenced by this Reuters article says that “most [of the loss] would come from economic activity that could not be replaced, such as ticket sales to Broadway shows or meals in restaurants.”
Now, this is unfortunate news for the theaters and the restaurants (and other similar businesses) and an inconvenience for the would-be customers of these businesses. At the same time, though, money not collected by the businesses is money not spent by the customers. If these customers are folks already living beyond their means, the fact that it’s harder to get around allows them the opportunity to step back and think twice about spending more money.
Hundreds of millions of dollars in lost businesses also indicates a whole bunch of money that remains in consumers’ pockets for a few days at least. Though there will always be ways for people to spend their money, lack of easy access to The City will probably give some bank accounts a little more of a cushion.
4 Responses to “The NYC strike may curb indebtedness?”
By Flexo on Dec 22, 2005 | Reply
At the same time, there are millions of people — hourly wage workers — who cannot get to their jobs for a variety of reasons. Many of these people could already be in debt, and the lack of income will put them in a more dire position while their paycheck-to-paycheck living is interrupted.
By mbhunter on Dec 22, 2005 | Reply
True Flexo. I was thinking more of the consumer side but yes, some of the producers are in debt too.
By Adult ADD and Money on Dec 22, 2005 | Reply
MBH
Limiting the number of outlets for spending will not help people who are in denial about their spending habits. But there are some people who might change their habits to help better deal with the unexpected. For many of the hourly wage workers this may be the only time when they are able to work overtime in order to make ends meet. It sad to think, but this will ruin some holiday celebrations. On the plus side 2006 might be the year that some of those people will actually stick to their financial resolutions.
By mbhunter on Dec 22, 2005 | Reply
ADD that’s true. Over the last few days there was a lot of money that wasn’t earned that needed to be earned, and a lot of money that wasn’t spent that probably needed to be spent so that those people could earn. I’m glad it’s over for the time being.