Recession Favors the Cobblers

A casual perusal of newspapers and magazines that cover business affairs will confirm that many industries have suffered from lower sales of goods and services. Apart from the US, many countries in Europe have also reported a reduction in sales volumes and value this year compared to the same period last year. Added to the fact that corporations are also laying off workers, it is interesting to find an industry or trade that is registering better sales at this time.

I would not have thought that cobblers and menders of shoes would benefit from the recession but having looked at the title of Sarah Needleman's article in the WSJ, it is clear why that is so. With unemployment figures on the rise, shrinking incomes and the real depth of the recession yet undetermined, consumers are realizing that it is far more useful to repair a usable pair of shoes than to go out to purchase a new one despite the discounts at the stores.

While I am unsure whether the recession will necessarily save the trade, it is clear that the cobblers will increase the volume of their work and increase revenues substantially. As it is they are acting as economic theory predicts by expanding their businesses by hiring more workers. Still, the drift of history and the rapid reduction in their numbers over time suggests that technological progress means that there will be fewer cobblers with better equipment once the recession is over. To my mind, a single recession, however severe, cannot by itself roll back the clock.