Seth’s Blog: All economics is local
The media tries to report on the world economy or the national economy, or even the economy in Detroit or LA. This is easy to talk about, statistically driven and apparently important to everyone.
Alas, this has virtually nothing to do with your day, your job and your approach to the market. That’s because geography isn’t as important as it used to be, but more than that, it has to do with the fact that you don’t sell to everyone, and the economy is unevenly distributed.
If the unemployment rate in your industry doesn’t match the national numbers, the national numbers don’t matter so much.
At the largest Lexus dealer in New Jersey, they’re sold out of many models, with a waiting list. In some towns in Missouri, the unemployment rate is twice what it is in your town. In the tech industry, the rate you can charge for developing killer social apps on a tablet is high and going up.
Economics used to be stuck in town. Now, as markets and industries transcend location, useful economic stats describe the state of the people you’re working with and selling to.
If your segment is stuck, it might make sense to stick it out. It also might be worth thinking about the cost of moving to a different economy.