People are eating out less and buying compact cars that suck every extra mile out of that gallon gas. However, the main thing that makes me fully realize that Americans are keeping a firm hold on their purse strings is Spam.
After going through a couple of Economics classes, I understand the idea of inferior goods- goods or services for which demand increases as income decreases and vice versa. I remember sitting in my Econ final, smiling to myself because the question about inferior goods didn’t seem that hard because I had the weirdly pink, processed meat to remind me how it all works.
So, when hearing that Hormel posted a 14% increase in profit during the second-quarter earnings, I remembered that Econ lecture and realized that we are entering a recession. I know this is a weird way to coming to that realization since we are being told all the time but the economy must be in dire straits if we CHOOSE to buy more of the mysterious, gelatinous, sort-of meat square.
