Taking a vacation is a great way to expand one’s perspective. For the past several years our family has vacationed in the Berkshire mountains of western Massachusetts. There is nothing better than to get away from the congestion of the New York metropolitan area, breathe the clean mountain air and experience cool nights with low humidity. To expand business perspective, it is also an opportunity to take a break from the mindset of friends and colleagues in the financial industry and observe the other America.
A Look at the Other America
Anecdotal economic observations can be hazardous, but probably no worse than a day watching CNBC for what passes as economic wisdom. While the folks at CNBC are constantly finding signs of economic recovery, I did not see such signs. In fact, things in western Massachusetts seem a little worse than last year. The area is interesting, with some contrasts and paradoxes. Old industrial America is still in evidence, for example GE Plastics in Pittsfield, which is now SABIC Innovative Plastics, Saudi Arabian owned. The vacationing financial elites from Boston and New York can enjoy fine restaurants, upscale galleries, museums and cultural events that are active in the summer there, while year-round residents shop for food, clothing and necessities in decidedly middle or lower class venues because there are few others to be found.
Some observations:
- The Boston Symphony Orchestra performances at The Tanglewood Music Festival were sparsely attended. In years past tickets had to be purchased months in advance and one would have to arrive hours before a concert to get a picnic spot on the lawn. We were able to purchase seats and find a central picnicking location near the music shed 45 minutes before the concert. The shed itself was about half full.
- Lenox has a large, modern, Super Stop and Shop. At 7 PM on a Monday night we counted exactly four customers in the store. We made several food buying trips during the week and each time employees outnumbered customers.
- Tickets for the summer theater festivals are usually nearly impossible to purchase, as most tickets are reserved for subscribers. Just hours before curtain we purchased great orchestra seats for two well reviewed shows, Lombardi and After the Revolution. Both shows are scheduled to open in major venues in New York in the fall.
- It is back to school shopping season. Despite large sale postings, WalMart had few customers in the store. I noticed many of the shoppers using food stamps for grocery purchases.
- I asked a local clergyman how his congregants were faring during the economic downturn. His view is that if one is not a doctor attached to the regional medical center or an attorney, it is extremely difficult to earn a living.
- Previously popular restaurants, that required reservations in advance, invited us to come virtually any time. When we arrived the restaurants were half full.
- Everywhere we went, high end retail and commercial space was empty and available to lease.
Two Americas
The Bush and Obama administrations made a conscious decision to provide bailouts to Wall Street and the unionized auto industry. Small business and the middle class have been left behind. It is not just rumor: there are two Americas and the other America is seeing no signs of recovery.
Today’s headlines emphasize the divide between these two Americas:
- Pending Home (Sales) Fall to Record Series Low in June
- Personal Income, Spending Flat in June
If western Massachusetts is any indication, the November elections will be quite interesting.
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Related posts:
- Labor Day 2010
- Tis’ the Season for Deflation
- The Economy at Street Level
- Why This May Be Worse Than the Great Depression
- Update on Deflation
Tags: SABIC Innovative Plastics, Tanglewood Music Festival, Walmart
