Gas prices crack the $4.00 mark and many fashion retailers feel concern about how the economy will impact business. There’s no crystal ball to the future, but historical information through the lens of a jewelry wholesaler may provide surprising encouragement.
Let’s begin with the recession of 1980 to 1982. The Iranian revolution led to erratic oil production and rises in gas prices. This was before the internet gave worldwide exposure to local businesses and our lens focuses from South Louisiana, which was in boom times because of offshore drilling. The recession hit South Louisiana in 1983 with the oil bust when price per barrel tumbled. Oil dependent cities saw 20% to 25% unemployment, equivalent to The Great Depression.