If you’ve watched the news in the past day, you probably already know that U.S.-based economic worries triggered a stock market meltdown all over the world. There are fears of a U.S. recession in 2008 – or the closest thing to it that it doesn’t matter.
While this isn’t something to be proud of, I’ve been saying for two years that a recession will come. However, I expected it to happen between 2009-2011, not this early. In fact, this Monday meltdown was triggered by President Bush’s announcement of an aid package to prevent a recession – or so I understand. (What’s more, Jan 21st is supposed to be the worst day of the year for seasonal depression.)
Unfortunately, that sort of talk from a head of state often triggers worse events rather than helping. The last thing a recession needs is for people to stop spending, but that’s what usually happens.
Now, should you as a blogger worry about this? If advertisers start to worry, there might be less ad inventory to go around – and it very likely will go to the top blogs in a given niche.
The easy answer to this question is “yes”, but let’s hope that we won’t be affected. Other indications are that more money will be spent for online advertising in 2008 than in 2007. So that might counteract any decreases due to recession. In fact, since it’s generally cheaper to advertise online, a recession could cause a shift in advertising dollars to the online domain.
Still, if you’re making your living solely as a blogger, I’d say be cautious, especially if your blogging income has been unstable in the past 2-3 months. If you blog part time but have a full-time job, keep an eye on your career. Jobs are already being lost, some possibly indirectly due to the Writers Guild Association’s ongoing strike. (When a multi-billion dollar industry comes mostly to a standstill, there’s a domino effect on related industries.)
Let’s cross our fingers that this Blue Monday market meltdown is a temporary glitch and that things will improve soon. Or at least after the U.S. elections.