As year 2001 winds into its final quarter, it is safe to say we're not in 20th century any more.The unprecedented long cycle of prosperity we enjoyed in 90's led many to believe that we were experiencing a new economy; one that was immune to ups and downs we knew in past. This year, that notion came to a crash along with NASDAQ. The events of September 11 and aftermath that continues to ripple through world economy prove that we are indeed in a new era. How it will affect your home business is anyone's guess.
Many pundits predicted that consumer confidence, already low in 2001, would plummet after attack on World Trade Center. While economic shakeout has indeed been disturbing -- with layoffs, poor profit reports and entire industries asking Congress for bailouts, in case of consumers, experts appear to be wrong. A Gallup Poll report issued on October 17 states that 'today, 38% rate economy in positive terms -- excellent or good -- up slightly from 32% in a Gallup survey taken Sept. 7-10.
'Thirty-three percent say economic conditions as a whole are getting better in United States, up from 19% just before attacks.'
Gallup speculates that a 'rally effect' is behind good numbers, and notes that approval of President is at record levels, while Americans are behind Congress at levels not seen in 27 years.
Increased trust in U.S. Government may be a byproduct of most visible reaction to terrorist threat: The American flag is everywhere. It is now cool to wear your patriotism on your sleeve -- not to mention your home, your business and even flying from antenna of your car.
But in an unusual response to an extraordinary threat, government officials from President Bush to Mayor Giuliani have urged citizens to exercise their patriotism in a unique manner: by spending as much money as they possibly can. This would seem like a perfect marketing opportunity, and many businesses have created ads that play on nation's new sense of duty - with mixed results.
'There's no mixing green with red, white and blue,' said Los Angeles Times in a study of post Sept. 11 advertising campaigns. Nothing will alienate your customers quicker than appearance of trying to cash in on a national tragedy.