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What& #39;s going to happen to all the streaming services, Pelotons, Amazons and DoorDashes of the world once Americans are broadly vaccinated?
Probably not a lot. This week I tallied all the reasons why the "Stay-at-Home" economy is here to stay.
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https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧵" title="Thread" aria-label="Emoji: Thread">thread) https://www.wsj.com/articles/four-reasons-the-stay-at-home-economy-is-here-to-stay-11605934806">https://www.wsj.com/articles/...
Probably not a lot. This week I tallied all the reasons why the "Stay-at-Home" economy is here to stay.
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1. Companies made huge investments in the infrastructure needed to deliver goods and services, which means those products are now easier to use and often less expensive. (Amazon& #39;s 50% expansion in fulfillment infrastructure e.g.) https://www.wsj.com/articles/four-reasons-the-stay-at-home-economy-is-here-to-stay-11605934806">https://www.wsj.com/articles/...
2. Families, too, have invested in the services and gadgets to keep their members safe and sated while sheltering in place.
I.e. if you think people will go back to gyms after spending $2,000 on a Peloton, we need to talk about the sunk cost bias. https://www.wsj.com/articles/four-reasons-the-stay-at-home-economy-is-here-to-stay-11605934806">https://www.wsj.com/articles/...
I.e. if you think people will go back to gyms after spending $2,000 on a Peloton, we need to talk about the sunk cost bias. https://www.wsj.com/articles/four-reasons-the-stay-at-home-economy-is-here-to-stay-11605934806">https://www.wsj.com/articles/...
3. Our habits have changed: Many people have gotten over the “hump” of adopting new technologies earlier than they otherwise might have. A survey by McKinsey concluded 10 years of e-commerce adoption were compressed into 3 months of the pandemic. https://www.wsj.com/articles/four-reasons-the-stay-at-home-economy-is-here-to-stay-11605934806">https://www.wsj.com/articles/...
Finally, the "stay at home" economy doesn& #39;t work without a whole heck of a lot of people to deliver those services and goods.
America is still down 10 million jobs. But hundreds of thousands of permanent workers have been added at companies like Amazon. https://www.wsj.com/articles/four-reasons-the-stay-at-home-economy-is-here-to-stay-11605934806">https://www.wsj.com/articles/...
America is still down 10 million jobs. But hundreds of thousands of permanent workers have been added at companies like Amazon. https://www.wsj.com/articles/four-reasons-the-stay-at-home-economy-is-here-to-stay-11605934806">https://www.wsj.com/articles/...
My greatest worry about our new "stay at home" economy is it further reifies Americans into ever-more-polarized haves and have-nots.
People with salaries v. people with hourly wages they can lose after even a minor injury.
Convenience has a price. https://www.wsj.com/articles/four-reasons-the-stay-at-home-economy-is-here-to-stay-11605934806">https://www.wsj.com/articles/...
People with salaries v. people with hourly wages they can lose after even a minor injury.
Convenience has a price. https://www.wsj.com/articles/four-reasons-the-stay-at-home-economy-is-here-to-stay-11605934806">https://www.wsj.com/articles/...
@bencasselman Has done a great job summing up the numbers that explain our current pandemic/stay-at-home economy.
Of particular note: The increase in what Americans spend on *things* actually exceeds the drop in what we spend on *services* (both huge) https://www.nytimes.com/2020/11/19/podcasts/the-daily/coronavirus-pandemic-us-economy-unemployment.html">https://www.nytimes.com/2020/11/1...
Of particular note: The increase in what Americans spend on *things* actually exceeds the drop in what we spend on *services* (both huge) https://www.nytimes.com/2020/11/19/podcasts/the-daily/coronavirus-pandemic-us-economy-unemployment.html">https://www.nytimes.com/2020/11/1...
One more number on the pandemic economy which blew my mind:
Despite all the job losses, Americans have socked away an additional $2 trillion in savings.
10 million have lost jobs *but* 130 million still have them.
Hence this prediction: https://www.npr.org/2020/11/13/934219267/vaccine-could-unlock-trillions-in-spending-leading-to-biden-boom">https://www.npr.org/2020/11/1...
Despite all the job losses, Americans have socked away an additional $2 trillion in savings.
10 million have lost jobs *but* 130 million still have them.
Hence this prediction: https://www.npr.org/2020/11/13/934219267/vaccine-could-unlock-trillions-in-spending-leading-to-biden-boom">https://www.npr.org/2020/11/1...
