Another auctioneer brought up this question:
"I wonder if any auctioneers are seeing any decrease in
attendance at auctions attributable to the current high
gas prices? Do you think we will be affected seriously?"
Wow! Talk about a topic! Although, this isn't even
one that the economists can agree, as to the particular
impact that this is going to have on our economy. However,
we can look back on a little not-too-distant history and
see how it has impacted us in the past.
We go back to around 1973 (or was it 74? how time starts
to become just one big blur)... Some of you may remember
the big Oil Embargo!!! Gas prices shot up and everyone
couldn't understand how they were going to afford it. Of
course, we've seen this same scenario to some degree in
the not-so-distant past. How did it effect us overall?
Well, it DOES effect us... at least for a little while.
Then it just becomes a matter of what we learn to
live with.
Of course, it may also cause the next recession to come
about just a bit sooner. Yep! A Recession! Another one
of those "normal" occurances that are just part of the
economic cycle. Remember the mid-80's? The bottom fell
out on the S&L's... (I remember another auctioner was
doing pretty darn good back in the S&L crisis) and then
a long stretch of excessive growth through the 90's...
and a "correction" (mild recession?) around 2000-2001.
They usually pop up about every 10 years or so.
How will we be effected? About like most other businesses
to some degree. At first, we will see a short period that
our buyers will slow down on their spending. Maybe a few
more than usual will stay home. But as time passes and
they get used to the idea that life goes on, they will
start coming out again.
The key to making it through the slow-down that this may
cause, is just being able to sustain through the short
term... although sometimes it may seem like a long time
while we're bearing it out.
Just keep in mind, if worse comes to worse, and the
potential recession becomes the next great depression...
The money doesn't go away, it only changes hands. While
some may suffer, others will profit and capitalism will
live on. At the same time, while prices may dump, there
will be a lot more product to sell and maybe different
people to sell to. It just means more work to make the
same amount of money and to a few, maybe a lot of money.
You've just got to try to keep your finger on the pulse
and be ready to act whether it picks up or slows down.
Well, that's about how I see it anyway.
