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There's a great deal of talk about the widespread woes in the housing market these days, as the economic troubles continue to ripple through every region in the land.
But what about the trickle-down effect of these problems? If people are losing jobs, and homes, what becomes of the neighborhood store, restaurant or gas station? What happens when there's no one left to serve? Not only do the employees and owners of these once-vital conveniences and services find themselves in the unfortunate position of facing unemployment, and all that follows, but the closed down shops and empty malls just further add to the degeneration of an area. Of course, big business suffers too, and many huge companies are closing stores in the worst-hit areas, again leading to increased local unemployment. As both nationwide chains and privately-owned shops try to hang on by reducing prices and slashing costs, the cumulative effect can be devastating to local economies. Nationally, too the picture is looking uncertain. Consumer spending is considered to make up around 70% of the US economy, and as fewer citizens are spending, so the cycle continues. Those Americans who are still earning are saving, unsure as to what kind of future is waiting around the bend. While many retailers are seeing worrying trends developing in the spending habits of the population, some businesses have welcomed a significant increase in profits. These include discounts shops and, particularly large bulk outlets such as Costco and Target. A recent development in some areas has been the significant reduction in the price of fast-food. Major international and regional take-way restaurant outlets are offering meals with greatly reduced price-tags in an effort to keep the cash registers ringing. While this seems great for the struggling consumer, there are fears that this could ultimately see an increase in processed food intake, impacting on the nation's future health concerns. It seems to be an unavoidable truth that the cheaper the food, the less healthy it is. So, while property prices fall, and inventory rises, the prospect of finding employees with enough spending power to keep the housing market buoyant, is looking increasingly difficult in some parts of the country. Without the jobs, there will be no spending, and without the spending, there will be no jobs. Visit MinneapolisLoftsAndCondos.com for services from professional Minneapolis REALTORS®. Our tailored market search can find you the greatest Minneapolis condos and lofts.