The death of the physical world
In Singapore, it's well-known that the nightlife is dying. Nobody is going to Clarke Quay to buy drinks because it's too damn expensive. There is just no value there, and therefore the young who are not as captured into the system don't do it.
You can say it's the same thing for eating out as well. For whatever reason, rents go up, restaurant prices go up, income doesn't, less people eat out. It's a vicious cycle, because less people eat out supporting less restaurants , and your overall quality of food drops.
In Singapore, as mentioned in a previous blog post, it's hard to get a driving license. Not enough training slots to go around, cars are expensive, and I think people give up on driving.
Increasingly, I'm thinking that it's a generational thing. Older people got their licenses in the past. Cars were also cheaper back then. So they know how to drive and they drive. Life with a car in Singapore is quite different. You can argue that you will just call a Grab instead. But Grab is also approaching daylight robbery in some instances. This whole system adds so much friction that I'm sure it makes people stay home more.
It's not just about transport though. I remember the difficulties we faced booking tennis and badminton courts. Gyms that are too crowded. Maybe I'm slightly more particular. And you can say there are solutions. You can pay more, or there is such and such lobang. But overall, people will just give up on things that are too high-friction.
Even in Canada, when I go to the Recreation Centre, it's mostly retirees and middle-aged folks working out. The physical world is not one that is geared towards the needs of the new generation. The older generation has too much money and too much time.
What's not high-friction? Doomscrolling. Gaming. Hanging out virtually. And only invest in going out when there's an event, or a really good restaurant, or a really good movie...
People going out less has major consequences. Less money for infrastructure building and maintenance. Less money for businesses.
And we're not just talking about going out. We're also talking about travelling. Given the oil crisis, travelling could become a real luxury. Less tourists, and the face of many tourist towns will change. Real estate prices are likely to drop? But of course it's not so straightforward. Like for Covid, the prices of local cottages rose because if you can't afford international travel, local travel is the next best thing.