Holiday Shopping Won’t Provide Any Relief to the U.S. Economy
October 20th, 2008 AdminHoliday Shopping Won’t Provide Any Relief to the U.S. Economy
“Christmas just won’t be the same this year.” That is the thought on many Americans’ minds this holiday season. Consumers are already starting to think about the gifts they will give. Instead of lavish and extravagant presents for their loved ones, consumers around the country will give practical gifts instead.
The National Retail Federation doesn’t expect this shopping season to be very successful. It recently released its predictions for the season. It predicts that there will only be a slight 2.2 percent increase in the end of year retail purchases. 2008 is predicted to end its year with retail sales of only $470.7 billion.
The NRF Chief Economist Rosalind Wells recently stated, “Current financial pressures and a lack of confidence in the economy will force shoppers to be very conservative with their holiday spending. We expect consumers to be frugal this season and less willing to splurge on discretionary items.”
If predictions for this year are correct, we will see the slowest growth in the retail industry in over six years. 2002 was the last time that things slowed down this much. The major cause for such a dramatic drop is the recent plummet of the labor market.
Americans do not have as much real income as they once did. This new found need for keeping a close eye on their personal budget will cause a problem for the retail market. No one is going to go buy a new Nintendo Wii or iPhone if they can’t afford to put gas in the car or food on the table.
American consumers need to solve the economic problem this holiday season by using their cash back credit cards. The U.S. economy depends on consumer spending for over two-thirds of its gross domestic product. You have the power to fix the economy by just using your cash back credit card. Do your part this holiday season and use your cash back credit card wisely.