craftgrrl | present economy and disposable income

so...i am interested in making things to commission, lots of ideas and still sorting it out. since i will be in portland, where a lot of people do this successfully, i feel like that's an advantage. however, i also feel that the present economy is a disadvantage, and i am seeking your thoughts and opinions on how it may effect the 'disposable income' people use when purchasing hand-made items.

how do you think it might effect your etsy shops, or your store commissions? are you noticing any changes as of yet? do you think it will amp up competition and quality because people will need to really present something stellar to make the sale?

where do you ultimately see this economy going, and the repercussions for people who try to eke out a little extra here and there with their art?

do you think it will drive prices down, and artists will not be able to sustain the effort and time it takes to make their art for sale?

thoughts and opinions, please!