The Middle Class Is Steadily Eroding, Just Ask Golf?
/I'd be curious what you all think of the ramifications for golf, which gets a very brief mention in Nelson Schwartz's New York Times story titled "The Middle Class Is Steadily Eroding. Just Ask the Business World."
Schwartz uses interesting economic barometers to determine the premise and which is backed up by investor actions.
Across the country, Olive Garden and Red Lobster restaurants are struggling, while fine-dining chains like Capital Grille are thriving. And at General Electric, the increase in demand for high-end dishwashers and refrigerators dwarfs sales growth of mass-market models.
As politicians and pundits in Washington continue to spar over whether economic inequality is in fact deepening, in corporate America there really is no debate at all. The post-recession reality is that the customer base for businesses that appeal to the middle class is shrinking as the top tier pulls even further away
It was Wally Uihlein who first made the point to me about this divide's impact on the game. It's easy for him to talk about the topic as a quick tour of the Acushnet plant reveals a strong middle class workforce loyal to the company. However, his point is validated in this story. Golf will become even more of a niche luxury brand entitlement as long as the shift of wealth continues. So for all The First Tees, 20/20's and other initiatives, we still need a strong middle class to have money and time to spend playing golf.
The one difference between golf and some of the examples cited in the Times piece: golf even has seemingly upper-class brands, facilities and products suffering too. What does that mean?