During periods of economic downturn, the American mentality shifts, and we the people begin to buy – and not buy – different kinds of things. This process of isolating ourselves from the commercial world is referred to by retail analysts as "cocooning," and the new things appearing at the top of our shopping lists during recessions are called "counter-cyclical products." They can be anything from objects to foods to places to activities. Here are some of the things that become important to us when the rest of the world seems to be crumbling:
People are buying more:
Alcohol
Alcohol has been called "recession proof" because its sales are rarely injured by negative economic trends. While people traditionally bar-hop less during depressions to save a few bucks, they still tend to seek the self-medication that booze provides by drinking at home, says Sean Gregory of Time Magazine.
Firearms
Smith & Wesson's sales jumped more than 30 percent during the last quarter of 2009, according to CNBC.com. As unemployment rates continue to rise, many people begin to fear for their homes and loved ones – so they purchase guns for protection. Firearm sales in Colo. have been particularly high, with a measureable increase having occurred after Nov. 2008.
The non-profit sector
Marisol Bello of USAToday.com noted that during a recession, more Americans tend to donate their time to charitable organizations, only partially because such acts help to beef up résumés in a time of high unemployment. Churches, too, commonly experience an upswing in donations and volunteer efforts.
Condoms and contraceptives (and canoodling)
The last thing people want when the money is tight is another child, wrote Gregory. The sales of condoms and oral contraceptives rise predictably during recessions – just as predictably, in fact, as the entertainment industry suffers. Pressed for cash and usually stressed, people then create their own forms of entertainment, taking the necessary precautionary measures to prevent having another mouth to feed.
Home-cooked meals and fast food
To save money, people are beginning to utilize methods last practiced by their grandparents, said Gregory. They're purchasing raw forms of food and preparing large meals at home, freezing or canning the leftovers for later. On the other end of the spectrum of frugality, fast food restaurants like McDonald's have experienced exponentially increasing success, as families purchase inexpensive food on the go.
The bare necessities
If it doesn't feed, clothe or shelter, most people are beginning to feel that it's unnecessary. Families are cutting back to the more basic parts of life, consuming few or no discretionary items, wrote Gregory. People are forsaking decorative and more superfluous forms of furnishing in lieu of penny-pinching.
People are buying Fewer:
Luxurious gifts
With Valentine's Day not yet fully forgotten, Gregory wrote in another Times article on how Americans are commonly making the decision to purchase less expensive gifts. Jewelry stores and high-end restaurants experienced a decline during this month's romantic day, as couples tried to express their feelings with more fiscal responsibility.





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