I. United States of America economic history
In order to successfully move forward, we need to look to the past. The country’s economic history is like all history, meaning that it examines and observes the past activities of mankind (Fite 4). The most significant periods in the United States economic history are actually the three centuries before England settled in America. There were four changes happening in Western Europe that have greatly influenced America. Those changes were economic, political, religious, and intellectual (Fite 15). So why were these changes so important? They were the reasons that England decided to explore and expand in the western part of the world. The decision to expand trade and commerce was the most important advancement in the history of economics (Fite 15).
From the time that the Virginia colonies were settled in 1609 up until 1890, farming was the most important aspect of the United States economy (Fite 30). Although manufactured products were worth more than products produced on a farm for the first time in 1889, farming was how the majority of Americans made a living (Fite 30). Despite the fact that agriculture dominated in these early years and the industrialization of the colonies was well under developed, “there was a high degree of specialization in the colonial economy” (Fite 63). For example, there were tobacco crops in the southern colonies which were crops that produced money, and in the northern colonies there was international trade with other continents (Fite 63). All of this called for a well-organized and planned distribution system (Fite 63).
America had a significant increase in its economy during the beginning of the 18thcentury (Fite 102). After the Revolutionary War was over, so was the control that the British had over the colonies’ economy. When the U.S Constitution was established in 1789, it provided a necessary ingredient for the growth of the economy, the blueprints for a central government that was both effective and stable (Fite 123-124).
Looking back at the history of the American economy, The French and Indian Wars (1754-1763) were significant (Fite 102). France was defeated which gave greater control of North America to Britain. After this, the colonies and Great Britain conflicted, including economic differences, which ultimately lead to the Revolutionary War (1775-1783) (Fite 102). Between this time and the establishment of the Constitution, the economy was stronger as a result of the increase in farming, commerce and trade, and productive manufacturing (Fite 124). In the years following, there were many events that contributed to the development of the American economy, like the European wars, which raised American export volume monumentally (Fite 124). All in all, the American economy continued to grow.
As the Americas continued to expand, the economy continued to rise through the Civil War (1861-1865) (Fite149). Between the Civil War and World War I (1914-1918), the progress of labor was monumental. Wages increased and working hours became shorter, making it the ideal working environment (Fite 412). With the development of mass markets by World War I, chain stores and department stores began to appear (Fite 474). During this time, the need for banks to aid in the controlling of the money supply flow was great (Fite 490). This was result of the economy being in a state of prosperity (Fite 490). During the First World War, the American products were in high demand from the allies, which in turn caused a “boom in some industries” (Fite 525). When America joined forces with the allies, there were some complications with the economy, which required federal action. The federal government commanded the control of allocating items that were limited in supply. This kind of federal economic control was a precedent for procedures during hard times, like the Great Depression and World War II (Fite 525).

II-A. What is a Depression and Recession and the difference between the two?
“There is an old joke among economists that states: A recession is when your neighbor loses his job. A depression is when you lose your job” (Moffatt). But how do you really know the difference between a recession and a depression? A good start would be to define each: an economic depression according to yourdictionary.com is “a prolonged period of recession, or a significant and prolonged downturn in the economy. Characteristics of an economic depression include declining business activities, falling prices, rising unemployment, increasing inventories, public fear and panic” (Definition of Economic Depression). This definition is understood when looking back at the Great Depression. The Great Depression began with the stock market crash in 1929 and lasted for ten years, with unemployment increasing to 15 million and the gross national product decreasing from to 100 billion to 50 billion (The Great Depression). The National Bureau of Economic Research formally defines a recession as three consecutive quarters of falling real gross domestic product” (Recession - Invest Definition). The three recent 20th and 21st century recessions, in the 1980’s, 1990’s, and 2008, were economic downturns that severely hurt the economy.

II-B. Signs and common factors of a fall in the economy
Like any disaster, there are signs that warn us of an economic downfall. There are some common factors that can be observed during a period of economic trouble. One of the most notable signs, in my opinion, is the real estate trend. Everyone needs a house to live in as one of the basic life essentials: shelter. In my experience when people pay their bills, the mortgage or rent is the first to be paid. Therefore, when there is an increase in foreclosures and late payments because people cannot afford to pay, the economy is in trouble. Dallas, Texas was proof of this fact when the current recession started in 2007.
In the year 2006 over 18,000 homes in the Dallas- Fort Worth (D-FW) area were foreclosed by banks and lenders according a report done by Foreclosure Listing Services Inc. (Hiller). Out of all the homes listed on the Multiple Listing Service (MLS) in North Texas, about 6 percent consisted of former foreclosures. This may not seem like a lot, but remember there are thousands and millions of homes listed in the MLS databases in each state. However, the number is inaccurate because the number of houses that were repossessed is not counted. In 2007, the foreclosure rate rose 15 percent by the time April came around (Brown). The trend has continued through today and there were over 14,400 property listings for foreclosures in San Antonio, Texas in September 2010 (Hiller).
The loss of property was relevant during both the Great Depression and the recession of 1980. Actual records on how much prices of homes fell during the 1930’s cannot be found because the government did not start to keep records until the 1950’s (Markels). However they did keep statistics on the amount of houses that were being built. Nine hundred thousand homes were built when the economy was at its peak in 1925 and then dropped over 90 percent to 100,000 in 1933. During the Great Depression, even though there were fewer people who owned their homes, there were millions who lost both their houses and jobs (Markels). Another marker of future economic troubles is the unemployment rate. When an employee has worked for a certain employer for over 30 years and then laid off suddenly, it is definitely time to re-think a saving plan. Today, the number of people that are jobless is so high that there is a television show that aired October 28, 2010 called the “Fairy Job Mother.” In the show, Hayley Taylor goes across the country to help the unemployed land a job. In 2010, there are currently about 15 million people who are unemployed, making the unemployment rate 9.6 percent (Rosenblum). The September 2010 unemployment rates for the individual states are listed in Appendix B. Although today’s recession seems bad, the 1980’s statistics show that their recession was worse. In 1982, the “unemployment rate rose above 10 percent” (Leonhardt) across the country, while September 2010, only ten states were above the 10 percent in regards to the unemployment rate (Unemployment Rates for States). There is one essential flaw in the numbers, in the opinion of David Leonhardt, because it counts people who work part-time as fully employed. Therefore, in Leonhardt’s opinion, information provided in the chart (Appendix B) is not accurate because it counts those who have given up looking for a job at the same level as retirees and stay-at-home parents, people who choose not to work. At its peak, the unemployment rate was at 16.32 percent in 1982 (Leonhardt). During the Great Depression the unemployment rate was probably above 30 percent (Leonhardt). II. The Great Depression
After the First World War, the climate in the world, especially in the United States, changed dramatically. In the early 1920’s, Americans were debating on whether their efforts from the war were “justified” (Tortora 388). The roles of women were changing due to Sigmund Freud’s sexual theories (Tortora 388). Before the war women were to behave in a certain way, like refraining from smoking, drinking and being with the opposite sex without supervision, however, in the 1920’s everything changed with the “flappers (Tortora 388)”. The 1920’s was the first time in history that women wore skirts that revealed their legs and wore skin colored stockings (Tortora 389). This fact supports the hemline theory, since during the time of flappers emerged, short skirts and flesh colored stockings were in fashion, and the economy was very prosperous. During the end of the 1920’s, all this changed.
Figure 1
The Great Depression was an economic decline across the world in places like the United States and Europe. The Great Depression began with the crashing of the stock market October 29, 1929, which led to a 40 percent decrease in the value of paper stocks. The Great Depression lasted ten years, making it the longest and most severe depression that every happened in the western hemisphere. Even though politicians tried to stay optimistic about the future of the economy, many Americans lost their life savings and their confidence also disappeared (About the Depression). Stock prices in the United States continued to decline. Up until the tail end of 1932 the prices were worth about 20 percent of what they were worth in 1929 (About the Depression). This abrupt decline in the value of property ruined thousands of individual investors. Banks and other financial institutions that had stocks in their portfolio were affected critically. As a result, they were forced into bankruptcy; “by 1933, 11,000 of the United States' 25,000 banks had failed” (About the Depression). The combination of a large amount of bank failures and a worldwide “loss of confidence in the economy” (About the Depression) led to a drastic decline in consumer spending, which led to a “downward spiral” (About the Depression). “The result was drastically falling output and drastically rising unemployment; by 1932, U.S. manufacturing output had fallen to 54 percent of its 1929 level, and unemployment had risen to between 12 and 15 million workers, or 25-30 percent of the work force” (About the Depression). Although the Great Depression originated in the United States, it quickly spread to the rest of the world due to the special and close relationships that were established, connecting the United States and European economies (About the Depression).

IV-A. The cause and effect of the Great Depression
Figure 2
Because of the Great Depression, people were forced to stand in line for hours just for a little bit of food to feed their loved ones. What caused all of this to happen? One factor that led to the Great Depression was the idea of “trickle down economics” (Causes and Effects of the Great Depression). This is the idea that if the rich were giving more money then it will also mean that the poor will have more money because the rich would start a company and then need people to work to keep the company running. However, instead of starting a company the rich kept the money for themselves, or saved wages and used machines to run the jobs of people (Causes and Effects of the Great Depression).
Another cause of the Great Depression was the assumption of wealth that the stock market had. Not everyone had the money to be a part of the stock market, but everyone wanted to; therefore, they borrowed the money (Causes and Effects of the Great Depression). With borrowed money, people bought stocks that were not worth much but were overpriced, which in turn cost them to lose their money. The lenders of the money were out of luck too because no one could pay them back, making many people lose everything they had in order to pay back the lender. The people who lent them the money also lost because nobody could pay them back (Causes and Effects of the Great Depression).
The closing of banks was another factor that led to the Great Depression. Everyone lost the money they had put in the bank because investors were not able to pay back their loans which led to the banks having no money left. As a result, people became desperate, frustrated, and in an uproar. They broke windows of banks and stole the furniture when they went to the banks to withdraw their money and were rejected from doing so (Causes and Effects of the Great Depression).
Seven hundred and forty-four US banks went bankrupt between January 1930 and October 1930, which led to people losing their life savings. At the same time that banks were forced to declare bankruptcy, and increased amount of savers tried desperately to withdraw their money; making a common sight, long lines of people waiting in line for the bank clerks. The banks decreased their amount of lending due to the Figure 3 bank crisis and politicians were unable to prevent the people from losing faith in the bank systems, which was catastrophic. There are many who believe that the most significant cause of the economic depression was the failure of the banks (Cause of the Depression).
Over-production was another cause of the Great Depression. Due to the industrialization of many companies, goods were being produced at an alarming rate and the average consumer could not keep up. Therefore, the companies were spending money to produce goods that were not selling, making causing them lose profits (Causes and Effects of the Great Depression).
One of the most noticeable effects of the depression was unemployment. Factories closed down from overproducing goods, and banks closed due to lack of money, leaving many without jobs causing over thirty million Americans’ income to disappear in 1933 (Causes and Effects of the Great Depression). This led to “massive poverty” (Causes and Effects of the Great Depression) and sixty percent of America was living off of soup kitchens and thought to be living in poverty. Two million people who had lost their homes spent their days walking around the streets looking for any type of work they could find. Adults were not the only homeless people doing this; some were children trying to help their families bring in wages to the household. Some towns even posted signs telling people to go away (Causes and Effects of the Great Depression).

IV-B. The effect of the Great Depression on the world
The Depression here in America affected almost every country in the 1930’s. It caused a decline in business worldwide. “International commerce declined quickly” (Effects of the Great Depression). Countries that shipped out raw materials as well as industrialized countries were affected by the Great Depression. Each country tried to defend industries and products of their individual countries’ by increasing imports tariffs, which eventually led to a decrease in countries trading with each other (Effects of the Great Depression). A decrease in consumer demand influenced the governments’ decision to reduce their spending. In some countries the repairs needed to their cities, due to the war, were put on hold (Effects of the Great Depression).
With the Great Depression, many countries had a change in government officials and types of government. One factor that led to the rising of Adolf Hitler was the weak state of Germany’s economy. The amount of debt that Germany was in due to the World War I contributed to the reason that they suffered the most (Effects of the Great Depression). Germany’s bank system collapsed when the Great Depression hit the United States economy because the United States had to recall all loans to Germany (About the Depression).
Figure 4
The Depression had a significant political effect along with the financial effects. Countries like Germany and Japan had a rise of a military style of power within the governments. These governments took forms of aggression when it came to foreign policies, which ultimately led to World War II. Government also intervened in the citizens’ lives, in countries like Great Britain and the United States, which led to welfare, and other governmental programs (Effect of the Great Depression). The Great Depression ended during World War II because of the new jobs that were needed such as phone operators, relief work with organizations like the Red Cross, and nursing (Seattle General Strike ) to service this new war (Causes and Effects of the Great Depression)

V. The “Reagan recession”
Figure 5

The United States endured its worst recession since the Great Depression in 1981 which lasted for 22 months (Wolf). It all started during President Ronald Reagan’s 1980 campaign when he promised to end both the economic crisis and the hostage crisis. Luckily for him, Iran decided to free the American prisoners a few months after he was sworn in; however, he was not as lucky when dealing with the economic crisis. He introduced the “Economic Tax Recovery Act” (Wolf). For the Act to be successful he needed substantial tax cuts form Americans both personally and on the corporate level. He also needed the government to reduce their spending and a balanced budget. The program was based on supply side economics: “Tax cuts, the theory went, would allow people either to spend more on goods and services, thus giving the economy a boost, or to invest in businesses, thus leading to economic growth. The economic expansion, supply side theorists argued, would generate enough revenue to cover the shortfall resulting from the initial cut in tax rates” (Wolf) .

V-A. The cause of the “Reagan recession”
President Reagan planned to cut budgets in every division of the government in order to level the budget. He refused to take money from programs like Social Security and Medicare, but other programs were not as lucky; he cut the budgets used for social programs, which included lunch programs in schools and “payments for people with disabilities” (Wolf).
In the beginning, there were many Republicans who doubted the Act and the Democrats were very unreceptive in regards to the Recovery Act. President Reagan’s approach to the resistance was strong lobbying, and he tried to win over the country by using his skills as a "Great Communicator" (Wolf). Slowly, Congress started to back President Reagan’s Recovery Act. By July 1981, President Reagan’s economic program won the support of two-thirds of the American public and was approved by enough Democrats to get it through Congress (Wolf). In August 1981 President Reagan signed the Recovery Act to make it a law (Wolf). He promised to find even more ways to reduce spending to level the budget, which was predicted to be approximately $80 billion that was cut from programs; “the largest, to that date, in U.S. history” (Wolf).
During the fall season of the same year the “economy took a turn for the worse” (Wolf). The Federal Reserve Board was forced to increased interest rates due to the inflation rate, which was 14 percent (Wolf). The recession was unavoidable once interest rates were raised. Many of Reagan’s biggest supporters were blue-collar workers, the group that was hit the hardest as they lost their jobs (Wolf).

V-B. The effect of the “Reagan recession”
The conditions of the recession resembled those of Great Depression which occurred fifty years earlier, making it the “worst recession since the Depression” (Wolf). By November 1982, over 9 million Americans were without jobs, the highest since the Great Depression. Failed businesses numbered close to 17,000, second in line for the number of failed businesses since 1933. Failed businesses included farmers lost their land (Wolf). The many Americans that became homeless consisted of the sick, elderly, and the poor (Wolf) and is estimated to include 1-3 million people (Heibutzki).
The country was a year into the recession before President Reagan admitted that “the economy was in trouble” (Wolf) to the public. Americans in the higher tax brackets were the ones who benefitted the most out of Reagan’s program even though there was 25 percent tax cut across-the-board, because the cuts within the budget hurt the poor, however, helped the rich. The economy gradually started to repair itself in 1983 (Wolf). America prospered throughout Reagan’s second term as president. The United States experienced the longest constant time of prosperity in its history despite the budget deficit continuing to grow.

VI. The Recession of 1990 Black Monday took place in October of 1987. Black Monday caused a cut in “Dow Jones Industrial Average” (1990′s Recession) of 22.6 percent, due to a collapse in the stock market. The recession that followed the panic of the stock market collapse was drastic. The recession of 1990 did not affect America only; countries closest to the America were affected as well. These countries included Canada, the United Kingdom, and Australia. Japan and Europe’s economy were not affected as badly. “Some believe that this recession is the reason Japan’s economy has perhaps bypassed even the U.S. economy in the Figure 6 world scale” (1990′s Recession). Even though the economy did a great job recovering, there were some long term effects that took place (1990′s Recession). Between the actual span of the recession, July 1990- March 1991, the total employment of Americans not attached to the farm industry decreased by 1.1 million The decrease in employment lasted for 20 months, June 1990-February 1992, and resulted in an all-inclusive total of 1.5 million (Industry Employment and the 1990-91 Recession - Job Losses Compared to Previous Recessions). The loss of jobs is a tragic effect of any recession and affects the people not only financially but, emotionally, mentally, and socially too. VII. The Early 2000’s recession and the Late 2000’s recession
There are a number of different reasons why the recession in the early 2000’s took place. Western countries were the ones that felt the recession the most. Many economists felt that the early 2000’s recession was going to last for several years. The collapse of the dot.com bubble, the September 11th attacks, and accounting scandals added to a sight contraction in the economy of the United States (Early 2000′s Recession).
The attacks on the Pentagon and the World Trade Center on September 11th, 2001 stirred up Americans feelings about the nation’s security and into a new reality that they were not 100% secure on the home front (Early 2000′s Recession). The economy took a big hit during this time when Americans stopped spending; however, they did stay optimistic. The fall in the dot.com bubble was one of the many causes of the early 2000’s recession because there was an unrealistic high that was initially created. Many people invested in the dot.com bubble as the idea of making money through the internet swept the world, like a wave. Then the reality hit as the whimsical idea came crashing down (Early 2000′s Recession). According to Early 2000′s Recession article:
As consumers saw the value of their assets fall, they were less likely to purchase as many goods and services, choosing instead to save, possibly for fear of job losses. In addition, the Tech bubble saw the creation of many Web businesses with unsustainable business models that survived on high stock prices or venture capital. As the stock bubble deflated, the cash for these companies dried up, and many failed or sharply downsized. In turn, this created a flood of server hardware on the secondary market, and hardware and telecom companies suffered as a result. (Early 2000′s Recession)
Another cause of the early 2000’s recession was a series of shocking accounting scandals, which caused a big uproar. The scandals also caused a “mild contraction on the North American economy” (Early 2000′s Recession). Many of the scandals occurred on a corporate level, like the Enron (2001) and WorldCom scandal (2002) (Early 2000′s Recession).
Before 2000, Americans spent an enormous sum of money trying to fix the Y2K bug. “The United States government spent $8.8 billion on Y2K fixes. Private U.S businesses shelled out $100 billion to prepare for the bug” (Y2K Precautions) Once 2000 started the spending ceased and a decision to drastically decrease investments in technology was made by many firms (Early 2000′s Recession). This could have been a main component in the reason the stock market fell after March 2000, which was damaging to the overall state of the economy (Early 2000′s Recession). The recession lasted for 8 months, from March 2001 – November 2001 (Early 2000′s Recession).
The world has seen gradual inflation in oil prices since 2000, but in 2008, the prices were so high that they started to cause real damage to the economy, which put globalization in jeopardy. Previous to 2008, $100 a barrel was the highest oil was ever priced. In July of 2008 the cost of a barrel was $147.30. This resulted in a drastic drop in demand, which lowered the cost of a barrel to $35 (Global Recession in the Late 2000s: A Guide to the Economic Downturn (2007- )).
Trade also suffered greatly in 2008. The Baltic Dry Index, which is an indicator of shipping volume worldwide, fell 50% in October in one weeks time (Global Recession in the Late 2000s: A Guide to the Economic Downturn (2007- )). This has been blamed on the tight hold on giving credit, which made it hard to get letters of credit for many shipping merchants (Global Recession in the Late 2000s: A Guide to the Economic Downturn (2007-)). The global rate for inflation was at an all time high in February 2008 according to Reuters.com. Reuters.com states that possible causes of the inflation rate could be a combination of the financial crisis and the increase of commodity demands (Global Recession in the Late 2000s: A Guide to the Economic Downturn (2007- )). By the end of 2009 20 million jobs were lost, which in turn made the unemployment rate rise above 200 million for the first time ever (Global Recession in the Late 2000s: A Guide to the Economic Downturn (2007-)).

V. Fashion economics
The fashion industry is one that is centered around clothes and can leave you baffled with its very unique cycles of supply and demand. Twice a year the big names in fashion present their new collections, long before the season starts. When the collections start, there will be a crowd of enthusiastic buyers, who cannot risk the opportunity to join the elite “consumer vortex” no matter the price (Leverine). The state of the economy affects every corner of the world and every business. However, the correlation between the fashion industry and the economy is the concentrating of the paper. The fashion industry has its hands in every cookie jar in the world: photography, advertisement, finance, the stock market, and of course, the economy.
Figure 7
While the country is in an economic downfall, consumers do not spend their money as freely as when the economy is going great. Many consumers wait for the items they want to go on sale or clearance. Fashion trends change from being driven by having the latest style to being driven by their target markets’ income and necessity. Many fashion companies have taken the decline in the economy as a way to flip the traditional rules and create new ways to sell their products. Consumers are drawn to promotions like “Cyber Monday” (Ward 2), which is an internet supplement to Black Friday. Stores, like H&M, also found that teaming up with luxury designers, like Jimmy Choo, was another great way to produce a profit in an economic crisis. Teams like the one H&M has with Jimmy Choo allow consumers to get the feel of high end clothing at affordable prices (Ward 2).

VII-A. Fashion’s Night Out
Figure 8

In order to help raise the economy, the fashion industry presented “Fashion’s Night Out,” for the first time on September 10, 2009, which occurred in twelve cities across the world on the same night, including, New York City, Los Angeles, London, Paris, Tokyo, and Milan. According to many United States retailers, the main goal was to boost their businesses and transform their stores into an entertaining environment by offering a fun filled night of shopping (Moin). The night was full of initiatives to shop, like a free make-up bag from Sephora. Also the Kate Spade store in SoHo offered a meet and greet with Tim Gunn, from Project Runway. Celebrities filled the shops and streets of the participating cities, to make it a night of shopping to remember (Moin).
The fashion industry wanted to increase the awareness of the designers’ showrooms and the publics’ enthusiasm, and with Fashion Night’s Out, they were right on point. This was a social event of the year in New York and Los Angeles. According to Anna Wintour, Editor of American Vogue Magazine and the night’s organizer:
We were thrilled. It was already a huge success last year. Last year we were really running a campaign with an unknown candidate. And this year we had the incumbent on our side, so at least we were talking about an event that people knew what it was. They were excited about it and they turned out in droves…If you walked through the streets, as I did, of New York on Friday, everybody was dressed up, they were having fun... (Anna Wintour on Fashion's Night Out - CBS News Video).

Figure 9
Although Fashion Night’s Out was a social success, the financial records are so hard to find. “We just cannot understand however, why so little information exists on the economic success of an event whose purpose was to be an economic stimulus” (Update: Did Fashion’s Night Out Boost Retail Sales in NYC?). Admitting that the night was more about the social aspect and getting people into the stores, many stores’ priority was not the financial results (Update: Did Fashion’s Night Out Boost Retail Sales in NYC?). However, Fashion’s Night Out popularity increased, considering that in 2009 there were only 12 cities around the world compared to the 100 that participated in 2010 (Anna Wintour on Fashion's Night Out - CBS News Video). Although people were motivated to attend, the actual profit by the companies is not clear (Fashion’s Night Out Fall short). “There may have been 700 in-store events to choose from in New York City alone, but consumers kept their wallets snapped shut. Instead, they saw the night as an opportunity to gawk at celebrities rubbing elbows with one another…” (Fashion’s Night Out Fall short). The fashion industry is a profit driven industry and if they are planning next years’ event, the hope is that customers will spend. VII-B. Fashion’s affect on New York City In New York City, the fashion industry is a high priority for city officials. The industry is such a high priority for New York City officials because the industry produces approximately 55 billion dollars in direct sales. The industry, in all actuality, brings in more than the 55 billion dollars because over 600,000 people flock to the city for events that the fashion industry presents and spend over another 15 billion dollars, which includes hotel sales and restaurant sales. The fashion industry accounts for approximately 165,000 of New York City jobs with 900 fashion related companies and showrooms to help (Feitelberg). In an effort to help the fashion industry, city officials asked fashion executives for pointers on the industry via a study called “Fashion.NYC.2020” (Feitelberg), “a city-funded initiative chaired by LF CEO Richard Darling, Diane von Furstenberg, Macy’s CEO Terry Lundgren, Theory CEO Andrew Rosen, and Gilt Groupe CEO Kevin Ryan” (Chernikoff). The study started when the Economic Development Corp took a survey of more than 500 fashion workers, which led to the Six Initiatives: 1. NYC Fashion Fund and Institute 2. Project Pop-up 3. New York City Fashion Draft 4. Fashion Campus NYC 5. New York City Fashion Fellows 6. Designers as Entrepreneurs (Chernikoff).

VII-B-1. Six Initiatives
Each one of the initiatives has its own purpose. The “NYC Fashion Fund” will support up and coming designers by offering a unique venue. It will help the designers by allowing them to access funds for production, a list of manufacturers who are more than willing to work with new designers, as well as other services to help with their first round of production. There are many challenges that new designers face as they attempt to grow their businesses and brands. This includes finding financial assistance for production, locating manufacturers willing to work with new designers that offer high quality, and creating successful marketing and advertising techniques. However, the most significant challenge is finding someone to help instruct them on how to write an effective business plan and cash flow projections. Initially financial assistance from the city will help establish the fund. (Mayor Bloomberg Announces Six Initiatives to Grow NYC's Fashion Industry).
The purpose of “Project Pop-up” is to keep New York City’s top ranking as a leader in the retail industry. “Project Pop-up” is a contest that will take place yearly in order to encourage concepts in retail that are innovative. The applicants will be required to come up with new store concepts or online retail businesses to be judged by a panel of industry executives. The winner will have the opportunity to aid in the opening of a short-term “pop-up” store to test the concept, among other initiatives (Chernikoff).
Bringing students from universities that are both domestic and international for a series of interviews with fashion businesses based in New York City is the purpose of “New York City Fashion Draft.” Even though each business in the fashion industry has their own recruitment programs, coordinating potential candidates to come to the city for interviews is not their strong point. A candidate whose interest lies with the business side of the industry has the opportunity to receive a full time position in management with one of the participating companies. “In addition to exposing the students to a broader array of potential employers, the draft will serve as an efficient way of introducing a large pool of talent to the city’s fashion companies in a short amount of time” (Chernikoff).
“Fashion Campus NYC” provides rising professionals in the management and fashion field with even more chances within the industry. Since students get their first taste of what field they want to go into from internships that are usually at the corporate level, this program is perfect (Bloomberg Announces Six Initiatives to Grow NYC's Fashion Industry). Business seminars will make up a majority of the program along with opportunities to network and a resource with information about living and working in New York City, which will be available online (Chernikoff).
The “New York City Fashion Fellows” will acknowledge thirty up and coming stars in management, who in return will have the opportunity to be mentored. They will also have an opportunity of a meet and greet with their peers and other industry professionals. The New York City Fashion Fellows geared toward the up and coming that have not yet made it into the business. This is why this program is unique (Chernikoff).
To arm promising talent with the right skills to make the dream of owning a business a reality, the city is launching the “Designer as Entrepreneurs” program. New York City is where several designers flock for a chance of a lifetime. Even though these young and talented designers have the ambition, passion, and creativity to start a business, they do not have the proper skills. The program will be like an entrepreneurial boot camp. It will include a variety of workshops that experts from the field will lead. The workshops will focus on topics such as how to write and develop a business plan, financial management, and e-commerce (Chernikoff). Each one of the Six Initiatives brings hope to young designers, like myself graduating and getting ready to enter the world of fashion.

VII-C. Affect on Materials
Figure 10

The cost of garments in the stores is dependent on the cost of the raw materials. One of the most used materials in the industry is cotton, which has just hit a high in the recent months, as of October 2010, worldwide. The price of raw cotton has risen to 1.02 dollars a pound from the 59 cents it was before, according to the WWD Fiber Price Sheet (Casabona). Shortage in the levels for production is one of the most challenging factors that contributed to the high prices, among other factors. Many farmers have chosen to grow corn, soybeans, and wheat, instead of cotton due to a rising interest in biofuels. The imbalance between supply and demand does not help the situation either. When the recession was at its peak in 2009, there was a decline in the need for cotton, which in turn led to production slowdown (Casabona). “According to data from Cotton Incorporated, the cotton harvest last year was 16 million bales short of worldwide demand. This year’s harvest is expected to be four million bales short” (Casabona). The shortage also means if the cotton industry wants to keep up with all the orders, then they have to give out their entire inventory, which will just add more financial pressures (Casabona).
With all the demand for cotton, it may appear as if the cotton industry was profitable, but this is not the case. Someone is always getting squeezed especially when the price of apparel at the retail level are decreasing but increasing in the beginning of the process. This pattern cannot last forever because if the prices are such an anomaly then it will cause textile manufacturers to use more synthetic fibers in blends and/or shift their business to synthetic fibers (Casabona).

VIII. Fashion of the 1930’s
In 1920 undergarments consisted of straight restricting lines and then changed to styles that emphasize the figure of the women (Tortora 399). As for the silhouette of garments, they also started to change. The silhouette began to compliment the natural shape of the woman. The length of skirts got closer to the ground and belts were worn closer to the natural waist (Tortora 399), supporting the hemline theory. During the 1920’s the hemlines were short and then in the early portion of the 1930’s, they fell. Toward the middle of the 1930’s, the hemlines started to get shorter again (Tortora 399), as the economy strengthened, meaning that “rising hemlines are a bullish sign and falling hemlines are a bearish sign” (Hemline Theory- Financial Definition of Hemline Theory). During the time of World War II (1939-1945) the fashion styles were restricted.
The Sears Roebuck Catalogue from the fall season of 1930 guided its readers in the direction of thrift: "Thrift is the spirit of the day. Reckless spending is a thing of the past" (The Great Depression and Women's Fashion). Many women chose to make their clothing despite the fact that styles were drastically changing. The styles of the “Roaring 1920’s” (The Great Depression and Women's Fashion) were a thing of the past by 1932. Vintage clothing became the “it” fashion due to the economic hardship rather than the flashy expensive style of the 1920’s (The Great Depression and Women's Fashion).
Fashion trends during the 1930’s were driven by the “practical economy” (The Great Depression and Women's Fashion). Another factor that influenced fashion trends were the desire for the unfeasible styles from the 1920’s (The Great Depression and Women's Fashion). High style clothing rather than high fashion was the key concept during the 1930’s. An upper middle class fashionista was no longer able to purchase a Worth couture gown (The Great Depression and Women's Fashion). Fashions which originated in Paris became too costly for everyone except the extremely wealthy, which helped American designers come “into their own” (\American Cultural History- 1930-1939).

VIII-A. American Designers
Figure 11
During the World War II, French couture designers continued to work, but on a limited basis, since they were not getting much coverage, which led to many American designers to be featured in magazines like Vogue and Haper’s Bazzar. The designers had full and in-depth coverage which would not have been possible if they were competing with the couture designers of Paris. French couture designers catered to private costumers and small boutiques, which is very different from American designers, who worked for ready-to-wear manufacturers (Tortora 395-396). Since American women bought their clothes from local dressmakers, many designers worked for dressmakers, who had four seasons of production: spring, summer, fall, and winter (Tortora 396).
VIII-B. Claire McCardell- 1905-1958
Figure 12

Figure 13
There were many American designers that contributed to the fashion world like Claire McCardell. According to Sally Kirkland while writing about McCardell in American Fashion, “Many think Claire McCardell was the greatest fashion designer this country has yet produced. Certainly she was the most innovative, independent, and indigenous of American designers” (Tortora 396). McCardell was born in 1905 in Frederick, Maryland. She studied in Paris and at the Parsons School of Design. In 1931 McCardell had a bitter sweet opportunity, when the head designer of Townley Frocks was killed in an accident and she featured her first collection for them. She continued to work for Townley Frocks until it closed in 1938. In 1940 she started to design under her own name, which was a great success. “Claire McCardrell was arguably the leading force behind the development of American ready-to-wear fashion” (Fashion Design History Collection) Many design styles and features which she originated or made popular are still used today. The styles include: matching separates, which was an innovative idea at the time, dirndl skirts, hardware closings, spaghetti/shoelace ties, the poncho, and the monastic, “a bias cut, full tent dress that when is belted followed the body contour gracefully” (Tortora 397), which would not have been possible without the influence of Madeline Vionnet.

VIII-C. Madeline Vionnet- 1877-1975
Figure 14

During the 1920’s up until the time that Paris was cut off by war from the England and America, the French couture kept its place as the “arbiter” (Tortora) of women’s fashion. The French couture scene was very influential and there are certain designers that stood out from the rest.
After the 1920’s Madeline Vionnet opened a shop in France and quickly was invited into the world of haute couture. She specialized in the cut of dresses and originated the “bias cut, a technique for cutting clothing to utilize the diagonal direction of the cloth, which has greater stretch and drape in such a way that the body lines and curves are accentuated” (Tortora 393). Many designers use this because it accentuates the body without using a lot of fabric. Vionnet became one of the most desirable designers of the 1930’s when bias cut was fashionable. Unfortunately she had a short solo career because she retired in 1939, but her techniques are still used today (Tortora 393).Vionnet was only one of the influential designers for the time period. For more designers refer to Table 2: Designers of the French appendix B.

IX. Fashion of the 1980’s and 1990’s
In the 1980’s the fashion industry underwent major changes. The notion that the industry could no longer tell the consumers what to wear or what was “in fashion” was lingering around for some time before the 80’s. The ready-to-wear aspect of the industry is where most of the action was. Americans became used to the thought of buying ready-to-wear clothing made by foreign and American designers. There were also many changes in the production and retailing of the apparel. Many designers started to send their production to third world countries in response to the increase interest in globalization (Tortora 508).
In the 1980’s, there were major trends with various origins. Retrospective, or retro, style was inspired by the past. 1980 designers looked backward when designing, which is unusual since fashion collections are designed with what the consumer wants 2-3 years in the future in mind. Within the 1980’s, trickle down, which was when fashion trends started at the top with the elites and then made its way down, and bottom up style, which was the opposite of trickle down, were present (Tortora 517). Two other trends included yuppies and preppies. “Yuppie was a 1980s acronym for ‘Young Upwardly Mobile Professional Person’. The word was coined by the advertising industry to capture the essence of a particular type of work hard, play hard, ambition minded city career person of either sex” (Weston-Thomas). Yuppies were often young professionals who worked in fields like law or businesses until the stock market crashed. The Yuppies’ goal was to obtain expensive possessions; male yuppies wore double-breasted Italian power suits and women wore feminine versions of the suit. Preps consisted of Ivy League students who would become yuppies and people who just wanted to be yuppies, also known as “wannabes.” The look Figure 16 emphasized blazers that were made of classic tweed, conservative skirts and pants, tailored shirts, leather pumps and loafers (Tortora 517). For more information on how style tribes influenced mainstream fashion, refer to Table 3: Style tribes and their impact on mainstream in Appendix B.
In the 1980’s, many schools of design sprouted. These schools of design were not favorable among the typical consumer but influenced many designers anyway. For example, Japanese elements like the use of blacks, grays, and innovative ways of cut in the garment were represented in many designers’ collections. Martin Margiela (1957- ) was the best-known deconstructionist during the 1980’s and early part of the 1990’s. Deconstructionism was a style where the elements that are usually on the inside of the garment were on the outside, like the seams and lining, or when seams were unfinished (Torotora 523).
Figure 15
The fashion of larger shoulders and sleeves was prevalent in the 1980’s which caused the use of shoulder pads in everything from day dresses to evening dresses to sweaters. The trend of big shoulders continued through the early 1990’s and then the fashion of more a natural shoulder lines was dominant (Torotora 524). As the 1980’s progressed so did an increased interest in the body, which continued to the new millennium, resulting in tightly fitting dresses made of lycra blends (Torotora 524). Many skirts and pants were tightly fitted until the mid 1990’s, where pant legs became wider and skirts became fuller. There were no clear trends in silhouettes or skirt length, but there was a clear trend in fabrication. Rayon once again became popular in the 1980’s and 1990’s (Torotora 525). Many of the trends in the 1980’s and 1990’s continued through the new millennium (Torotora 533). Many of the people I asked who were at their prime in the 1980s, agree that the “Reagan recession” brought about some unique fashion trends, like the multicolored hair. They say that since there was so much despair and tragedy in the world at the time the crazy trends were a way to stay optimistic (People of the 80’s).
These aforementioned fashion styles of the 1980s were influenced by economics. “With the percolating economy in full bull-market mode, fashion met the challenges by altering advertising trends to emphasize male beauty” (Batchelor). With designers focusing on older consumers the youth began to lose momentum with their hold on the industry. These older consumers were living longer and financially secure after the recession. People were making money and it is understandable that the power suit, a Wall Street comprised look became sought after (Weston-Thomas), especially since the Wall Street corporate look was thought of as stuffy and rigid for such a long time (Batchelor). Designers then started to focus on the power suits and created tailored looks so that the suits could be worn for all occasions, not just to the office. The financial success of the 1980s was also reflected in American offices at the time when “casual Friday” was introduced. When the economy went from boom to bust, the formal dress of corporate America returned (Batchelor).
The economics of fashion in the 1980s was also reflected by President Reagan and the first lady; their attire supported the affluence of the time. The open access to designer labels was another way the appearance of affluence was reinforced. By the mid-eighties it was out with the old and in with the new when credit cards were readily available. The consumer found relief in the ability to spend and be encouraged to do so after the recession with credit. The spending rate of clothing skyrocketed, showing the power of superficial wealth. The 1980s thoroughly captured the idea that the use of clothing could indicate the mood of people, attitudes and places (Weston-Thomas).

X. Current Fashion
Current fashion trends change rather quickly. As of fall 2010, mono-colors, like black, grey, and white, are prominent in women’s wear and evening wear; however there are some colors, like blues and pinks starting to appear. It is believed that mono-colors, like the ones previously mentioned, are prominent during times of economic hardships because those colors are more economical to dye and use, rather that reds, pinks and yellows. Walking through stores like H&M and Forever 21 there are obvious reoccurring trends, like lace and leather. The two trends are over powering the stores. There are many skirts that are made out of black lace or leather with knit waistbands. Many of the garments in H&M are constructed of light weight fabrics like polyester chiffon. The silhouettes are tight fitting because many of the dresses are knit; they hug the female curves. The dresses are sexy yet classy, which is what every woman wants in a recession. They want to be able to spend wisely and still be looked at as fun, flirty, and sexy.
Figure 17
Figure 17
Leggings and skinny jeans are found everywhere in women’s fashion. Old Navy even has super skinny leg jean. The skinny jeans will continue to be a must have item for women since they are so flattering. Skinny jean accentuate the curves of the body and are fairly economical in some stores. In New York during the summer, skinny jean started to be worn in different colors on the street and some runway shows. This can be predicting that the economy is getting better, since bright colors are more expensive to use. Therefore, the designers must be making enough of a profit. However, when referring to denim, the dark wash will come into consideration. In the past you could not go into a store without seeing the ripped jeans; however, they are now starting to disappear and replacing them are simple dark wash jeans. Therefore it can be inferred that ripped jeans will become obsolete, since more people are looking to get classic pieces during this time of economic hardships, making accessorizing even more important.
Although clothing is one of the basics of living, being fashionable is a luxury. During the economic hardships today, many are no longer going for the fashion forward items. “Right now, people are purchasing things that are classic and that are never going to go out of style because they know that next year, next spring, next fall, it’s something they can still pull out of their closet. People aren’t nearly as willing to jump aboard on trends, especially if it’s going to cost a little more,” says Sarah Herold, shoe manager and stylist at the Akira Chicago women’s boutique on Diversey (Arellano). After reading through my surveys many individuals between 18 and 23 agree that they no longer buy clothing based on trends if they buy clothes at all. Most are spending their money on the necessities, like gas to go back and forth to work, and food, saying they have enough clothes for what they are doing.
Many consumers are responding to the recession by spending safer and less, which is very reasonable. Designers are trying their best to keep up with the needs of the consumer. “I think that many designers are going back to basics in an effort to make versatile pieces that can support any wardrobe,” says Jote Kaur Mahern, designer for Sunia Natural Fibers (Arellano). Even the fashion press, like Vogue magazine has responded to the current state of the economy. Many magazines have sections devoted to how to shop on a budget. Many runway shows now have separates, which use colors like blacks, whites, beiges and classic patterns, which are more practical economically.

XI. How the economy has influenced my senior collection and my future goals in a career in fashion
As a fashion design student going into the real world during the economic crisis one has to wonder how is it going to shape me and my future goals. After graduating, the economy will make it even more difficult than before to find a job in the fashion industry, making me rethink my job search plan. I have opened my search to more than just entry level designers, but also to receptionist and personal assistant. I am also looking at the big corporations that have more than one brand under their names like, Liz Claiborne Inc., Jones Apparel Group Inc., and Philip Van Heusen Corporation as well as fashion specific temporary placement agencies. I also have the choice to look for entry level photography jobs with magazines because of my minor in photography. However, first and foremost, I have to complete my senior collection in order to graduate.
The economy has had many influences on my collection. Since the consumer wants the most out of their money I have decided to have all my dresses convert from one dress to another. Therefore, they will get two dresses out of one. I am concentrating on different smocking techniques because the line and shapes made by the smocking reminds me of money charts or the stock market graphs. There are several techniques that I want to include in my collection that I have never done; therefore I am practicing the techniques prior to sewing my garments. Some of the techniques that I wish to attempt are several different smocking techniques like honeycomb, lattice, and English smocking; a bubble hem; corsets; working with rhinestones and studs; conversion techniques; and working with leather.
As for the trends that I hope to incorporate in my senior collection, there are a few. I know that one of the biggest trends is and will continue to be leather, which can mean that the economy is looking up since real leather is more expensive to use. It also suggests that designers are becoming more profitable considering they are ready to use such an expensive material. Due to the leather trend, I am incorporating at least a little leather in each garment and will be making at least one leather jacket. Since I want to use real leather, I will have to sacrifice something else because the price of the leather will put me over budget otherwise. The fabrications I will be using in my collection include poly-satin, chiffon, leather, among others. I am looking for inexpensive fabrics that I will be able to manipulate to look more expensive.
The goal I am working toward for my collection is simple: to demonstrate what I can do as a designer while being sensitive to what is happening economically. I want to create options/silhouettes that allow the modern women to still be fashionable in the current recession. I will be making a three-piece suit and seven convertible dresses. I also want to make the accessories and jewelry. I want to show that I will be a valued designer in any company because I look to future trends while designing and I try techniques other designers would not. I want to prove that I am a great designer, not only to other people but to myself.