by Patricia Thornton

Created on: June 13, 2009   Last Updated: June 23, 2009

My dad would always say "He's got champagne taste with a beer wallet", that describes most people during this global recession. We used to have a "champagne taste" (meaning we love the expensive stuff) and we would use credit or take out an equity loan to purchase whatever it was that we wanted. Now our "beer wallets" (having very little money) are causing us to hesitate when we consider purchasing expensive items. This is not limited to Americans, people all around the world are cutting back on leisure and luxury items.

When considering the recession in a global context, the industry that first comes to mind is tourism. Hotels, airlines, and rental car services are seeing less business because of this recession. This is easily observed by looking at the rapidly descending prices of any of these services. Vegas is a case in point, right now you can travel to gamble your life away for a fraction of what it would have cost two years ago. There are even package deals available that include flight, hotel, and rental car service for what it would have cost to fly to Vegas.

Another example of how the global recession is affecting individuals is the automotive industry. Now that people are strapped for cash, they are cutting corners everywhere, especially at the pump. In an effort to save money on gas, people are trading in their cars for vehicles that can get more miles per gallon. This trend is causing foreign firms such as Toyota to thrive while firms such as Hummer are seeing a sharp decline in sales.

People have also been affected through Real Estate. This may seem obvious, but I am not talking about foreclosures and mortgages. I am talking about renting versus buying. If you ask any Realtor or Real Estate Broker, they will tell you that renting your house has never been easier than it is now. People are staying away from purchasing homes. Whether it is because people cannot meet the new lending standards or because people are viewing property as toxic assets (a very poor judgment) is not known. However, either option can be blamed on the poor economy.

This global economic recession has affected people in various ways. From vacations to what kind of car to drive, even to how we decide to pay for our homes. This may not necessarily be a bad thing. At least in America, most people were living beyond their means; abusing credit, equity, and making unnecessary and expensive purchases. This recession may be exactly what most Americans needed to become disciplined and more aware of their financial situations. If both individuals and those who run the world's largest company's learn the valuable lessons that were taught to us through this recession, we may be able to avoid this financial mess in the future.

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