Rise of the Renting, Sharing Economy Could Have Ripple Effects

The global debt crisis devastated job and wage prospects for many young adults in the world’s wealthiest nations. But many young adults have adapted and are content to live with less: They’re in no hurry to purchase homes or take on debt, instead renting modest apartments and sharing services like wireless; they prefer living close to work, avoiding cars and long commutes; when they travel, they stay with friends or strangers who offer low-cost accommodations; they share tools, cooking utensils and clothing – and the first stop for many shoppers is now thrift stories or craigslist.org. The cost-saving trends are catching on among all demographics, and new internet businesses like Zipcar, Taskrabbit and Airbnb are responding. Market strategists describe the trends as potentially catastrophic for economic growth, suggests Matthew Boesler for Business Insider. The sharing economy, with an estimated $3.5 billion in revenue, could soon exceed $100 billion. Traditional executives are hoping the trends will fade, but young and old enjoy sharing and saving with a new sense of community. – YaleGlobal