You can still be stylish in a recession... and you should be!
I am sure it is proven somewhere that you feel better about yourself when you look good. I call it the "look good, feel good" philosophy. I was a heavy subscriber to this philosophy during my undergraduate and post-graduate years. I used to make sure when I had to take an exam I wasn't wearing the yucky sweatpants I had been studying in for days, but was dressed nicely. I think it helped increase my confidence on exams and major tests. It definitely helped me looked studious and, when necessary, I was better prepared to flirt with my professors. (Just kidding- as a women studies minor, they were mostly female professors!)
Even today, I still apply the "look good, feel good" philosophy. When I am feeling like I am too tired to get out of bed and be my creative and business savvy self I get dressed in my favorite outfit or wear something that inspires me (which is usually fashion) and I am instantly in a fresh headspace so I can conquer the world.
In today's economy we need be working harder and feeling good can be the missing link to your competitive edge.
So, in these times it is important that you take the extra time to do whatever it is so you can feel good about yourself. Just because the economy is drab, doesn't mean you have to look drab.