Part 8/10:
The ripple effects of reduced discretionary spending extend beyond airlines to various service sectors. As spending contracts, businesses notice a decline in demand, prompting layoffs as a reactive measure. The cyclical nature of this feedback loop means that once the downward momentum begins, it can be difficult—even impossible—to halt quickly.
The economic stagnation indicated by businesses across the board suggests that it is not isolated to specific areas such as manufacturing. Services, which account for a substantial part of the economy, are also deeply affected. As discretionary spending diminishes, layoffs in service-related roles seem inevitable, leading to a larger economic impact.