Why People Are Hoarding Cash And What That Means For Your Business
Why People Are Hoarding Cash And What That Means For Your Business
The New Economic Threat in COVID-19
The piece identifies an unexpected economic challenge: Americans are saving money at historically high rates reminiscent of the 1980s. While unemployment, national debt, and business closures are serious concerns, the author argues that excessive cash hoarding presents a unique threat to economic recovery.
Economic Spiral Mechanism
When consumers save rather than spend, local businesses lose customers, forcing them to reduce hiring. This increases unemployment and job competition, ultimately depressing wages and triggering a cascading economic downturn—ironically causing people to save less because they earn less.
Implications for Small Businesses
With fewer buyers in the marketplace, each lead becomes exponentially more valuable. The author emphasizes that your inbound leads into your business are more valuable than ever.
Recommended Solutions
Rather than relying on third-party platforms (HomeAdvisor, Thumbtack, Yelp, AngiesList), the author recommends establishing independent lead generation systems targeting organic, exclusive, high-intent customers—particularly crucial for contractors seeking multiple bids during economic uncertainty.
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