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Do People Buy More Art in the Bad Economy?
"Dick" [1] taught elementary school in California. He had molded his life into his very own "American dream." Dick lived in a picturesque little town, enjoying his own corner of paradise...complete with 1,400 square feet, a manicured patch of green lawn, and a white picket fence. At the height of the housing bubble, he had purchased a house utilizing a "zero down" loan. "Real estate always goes up" he was assured by those parroting the conventional "wisdom" of the mid-2000's. If only somebody had told him conventional "wisdom" is often wrong.
In 2008, the overinflated financial system finally found the pin it had desperately been searching for, and with a loud "pop", the housing bubble deflated. Dick's little town was hit particularly hard: People lost their jobs, people lost their homes, and many folks moved away. Fewer kids attend Dick's school now, and, to top it off, the California state government has cut back on education funding.
Result: Dick lost his job.
By the time I saw this story on the evening news, Dick had been receiving unemployment checks for approximately 95 weeks (nearly two years) and was complaining that the government (all of the rest of us) wasn't going to extend his unemployment benefits yet again. Now, I'll admit, I'm not always the most sensitive person, but, I couldn't help wondering: what had Dick been doing for two years? He was a smart, young, able-bodied man. But, he hadn't started a business, he hadn't flipped burgers for extra income, he hadn't looked into the plethora of ways to make money online. What he had done, he said, is that he had "looked for a job each week, but there are no jobs left in town."
Then the interviewer asked the question that was on my mind: "So, why don't you just move?" (most of the rest of the town already had).
His answer, "This is my home, this is where I want to live. I don't want to move."
There you have it. He doesn't want to move. Dick wants the rest of us to pay for his wants, even though it's very clear he needs to make some big changes in his life if he wants to improve his prospects.
He is refusing to accept the "new normal."
Here's the thing: If Dick would come down here where I live...to Texas - we need teachers, houses are cheap, and jobs are (fairly) plentiful. Or, if he doesn't like Texas, he could move somewhere else where his prospects would be brighter. There's no reason he couldn't move out of the ghost town with no jobs left: He isn't really tied to that particular California town. He doesn't have kids. He's not married. The only tie seems to be his house. Sure, finding a way out of his mortgage will likely involve some pain (unless he finds renters), but is that worth ruining his long term prospects?
He could move and better his life, but he doesn't want to.
The New Normal
The American economy has changed. We're in a "great recession" of sorts, even though, technically, by old definitions involving GDP and statistics [2], we're managing to eek out a tiny bit of "growth". But we're only achieving that "growth" by engaging in massive deficit spending and piling up an unsustainable amount of debt. In fact, after years of unbridled debt growth and heaping our bills on future generations (the only "special interest" who can't vote), I suspect we've reached a point where the downturn is now systemic rather than simply cyclical. In short, the economy has changed and we're reaching a "new normal", much as Japan did in the early 1990's. The post WWII growth levels we've all been accustomed to may not be returning anytime soon.

This downturn is real and some sobering and tragic stories have come out of it. But many people are still refusing to acknowledge, that we're in a "new normal." Now I certainly don't mean to minimize anyone's difficulties, but for many smart, talented, able-bodied folks, if they would actually accept this is the new normal and be willing to make the necessary changes, they could continue to thrive. While the economy is sluggish, it's still a huge, huge, huge, innovative 15 trillion dollar economy and you are entitled to your piece of it. [3]
The New Normal for Art
Turning to art: Artists sometimes write me and blame their lack of sales on "the economy" as if that explains everything. I wonder: Is it really simply "the economy"? Or are there things these artists could be doing, but aren't, because they don't want to? Are there marketing channels these artists don't want to invest the time and energy learning?
Since we've got the needle in our hand, let's burst more bubbles! Obviously, the economy has been better, but it's not simply the economy's fault you're not selling art. Sure, your old sales venues may be now failing. But plenty of art is being sold. If your old marketing haunts resemble an abandoned town in California, then you need to make changes to where and how you sell your art. Don't keep trying to find a job in a little town that has been abandoned. Don't be a "Dick."
How do I know art is selling? Artists tell me! Collectors tell me! All the time. I know artists who are thriving and daily thank their favorite deity that they live in a time with the magic of the Internet at their disposal. But, if you prefer an actual data point, pay attention: I read a story in Wired about Etsy, the art/handmade goods site.
Here's the relevant quote:
"in July 2012 [Etsy's] year-over-year sales were up more than 75 percent. Not bad for a retailer selling mostly nonessential products during one of the most sluggish chapters in the history of American consumer spending."
Yeah, that's right. Up 75 Percent [4].
At Etsy, at least, people are buying MORE art than in 2011. And in fact, Etsy achieved profitability in 2009 at the height of the downturn, and has grown every year since. They're going ahead and ignoring the "doom and gloom" and doing what it takes to grab their piece of the 15 trillion dollar US economy.
I know you can too!
Remember, Sharing Art Enriches Life.
Sincerely,
Clint Watson
FASO Founder, Software Craftsman and Art Fanatic
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[1] Not "Dick's" real name.
[2] "There are lies, damn lies, and statistics." -- Mark Twain (among others), who attributed it to the 19th-century British Prime Minister Benjamin Disraeli.
[3] I'm paraphrasing one of my favorite writers James Altucher, with the comment about you are entitled to your piece of our huge 15 trillion dollar economy.
[4] I don't have the articles I've recently read at my disposal, but, in addition to Etsy, sales of many non-essential luxury items are up across many companies. There are theories as to why downturns spur activity in sales of art, luxury goods, and non-essentials, but those theories really don't matter. What matters is this: while it may feel otherwise, art is selling. That means there is a way for you to get a piece of those sales.
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