Question

Does the economy have a lot to do with how and what consumers are able to afford?

Answer 1

Yes. A poor economy means that companies lay off workers and don't hire replacements.

Many people have lost their jobs and are unemployed. Others are afraid they'll lose their jobs and need to save their money. Investors have seen the values of their stocks lose some of their value.

Even for people like me with a steady retirement income, I think twice before I buy unnecessary items. The culture of spend, spend, spend is diminished with a poor economy.