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Beer No Longer Recession-Proof

Comparing alcohol purchased from home and the economies quarterly change with real gross domestic product (GDP) isn’t something that should attention. I think the amount of alcohol Americans consumes is their own personal business. Is the decrease in alcohol sales really affecting the nation's total output of goods and services? I believe that they could have compared the real domestic product with something more important such as increase or decrease the amount of oil the united states uses or the how some of Obama’s plans will help the economy.
Even though the “sales of alcohol for off-premises consumption were down by 9.3 percent from the previous quarter” people who are alcoholics are going to continue to buy the alcohol. In the article it also says “This is absolutely unprecedented: the largest previous drop had been just 3.7 percent, between the third and fourth quarters of 1991.” As many problems that alcohol in general causes this can be a positive thing for the economy. Alcohol can harm the human body and causes diseases and have a person’s body in bad shape in the future if that person consumes alcohol for so long. Alcohol is also one of the main reasons why teenagers get into car crashes and die, because they drink and drive. Alcohol is increasing the death rates of teens who drink and drive and have there friends in the car with them.
I don’t think that “Perhaps people are substituting Michelob and Coors for more expensive microbrews like Alpha King and Dogfish Head”, because of the condition the economy is in. We are in a recession and prices are increasing on everything and not just beer and alcohol. “This is unpatriotic, by the way, since all the macro brews are now owned by foreign-based multinational conglomerates“. This would be unpatriotic, but I don’t think that Americans care about being patriotic when they purchase alcohol and beer and when they are drinking, I think they just buy the beer because it either taste better to them or they just don’t care about what kind of beer they drink and just want to get drunk. “Perhaps retailers are discounting their prices, or brewers are passing along cost savings to their consumers”, I don’t think this make sense because if prices of alcohol and beer were decreasing wouldn’t consumers be buying more? Instead of prices decreasing and dropping shouldn’t they be increasing?
“Nevertheless, it's absolutely startling to see a major consumer staple experience a sales decline like this“, I don’t agree with these because to me even though alcohol is a major consumer and the sales are declining the affect of alcohol matters more.
At the end of this article it mentions that the movie theaters are doing terrifically well and motion pictures are increasing their revenues and I think this is because people can learn from movies and when a movie comes out that seem interesting to a person they usually go see it either with a significant other, friends, or family. Movies can also be a reason for people to get out the house and enjoy themselves outside of school or work. I think the movies is just a place you can relax.




Comments

I do find it very odd that alcohol sales are down 9.3% which is the largest drop yet recorded. It seems as though that with the economy in recession people would want to consume alcohol in order to get rid of their financial troubles. I personally do not have the answer as to why sales have decreased so much since the last quarter but I do agree with you that it does not make sense. I don’t fully understand how a decrease in sales could be caused by people substituting low end beer for high end beer. I always thought that most people have a preference that they like or already buy cheaper alcohol no matter how much money is in their pocket. I do not believe this article offers good enough evidence that a decrease in alcohol sales is caused by a sudden shift in people wanting to pay less for their alcohol. I also found it interesting in this article how the writer suggests these reasons for the decrease. He does not offer any evidence to back up his point, he simply tries to come up with reasons that he feels have caused this. This leaves this problem very open ended and he seems to just be presenting the topic for discussion. I read a few of the comments on the article and it seems as though everyone has a different opinion on the topic. One person suggested that it was all the talk of the presidential election and people were actually paying attention to it rather than drinking. Another person said that it could be the cold spell we’ve been having. It seems as though there are just too many factors to take into account. I feel that it was most likely several of these factors happening at one time and it most likely will not happen again soon. People will always drink their problems away no matter how little money they have.