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2012 marks first year of post-recession economy

Jerry Epperson -- Furniture Today, January 16, 2012

Jerry EppersonAmerica is just beginning to recover from the massive trauma of the recent recession. The most severe and destructive in anyone's memory, it caused more unemployment, business failures and economic distress than imaginable. And, no one forecasted its degree of severity.
     Further, there is now some broad consensus that we will not see a full recovery for many, many years. Balderdash!
     This recession traumatized and distracted American consumers to a degree not seen since World War II, the big one. Eighty-two percent of our households have made major changes in their lifestyles, usually by reducing spending, cutting back on luxuries, repaying debt, making do with less and deferring some purchases.
     Twenty million unemployed want jobs while another 40 million are concerned about their current jobs or their employer. The recession ended, technically speaking, two and a half years ago but for most, it still feels like a recession.
     Here is the truth: America has created a new baseline for future growth, and 2012 is the first year of the post recession economy. Just like after WWII, America is ready to go again.
     We agree that business is less than good for most, but it is better than it has been. Home prices have bottomed, construction is up, job creation is up, unemployment is down, manufacturing is showing gains, car sales are up, the stock market is at fairly good levels and reasonably stable, and GDP growth in the last quarter was the best in a while.
     Further, the banks have a record $3 trillion ready to lend and corporations have $2 trillion in cash, ready to expand and hire.
     Our population has a tremendous new mix of opportunities - the mature 77 million Baby Boomers (48-66), the 47 million Generation Xers (34-47) and the emerging 72 million Millennials (15-33). Who are earning 60% of all degrees, making huge income gains and will be over 50% of the workforce for the first time in 2012? Hint: It is not men. The fastest growing ethnicity is the Hispanic population, the Asians are the wealthiest, and the African- American population is moving to the South.
     The worst hit states in the recession like Florida, California, Michigan and Nevada will experience the largest rebounds.
     Americans have repaid debt and deferred spending for more than four years. They want to spend. Almost 30 million American adults live at home with their parents and hate it. They want their own residences. Again, 2012 is the first year of the new post-recession economy.
     By the way, my Mayan friends did not say the world will end this year. They said the old calendar will stop and a new one will begin. I agree. It will all start in Las Vegas!

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