(It’s called Black Friday because tradition has it that retailers make their profit for the year in the holiday shopping season. Given today’s economy, it’s tough to feel confident retailers will pull out a winning year.)
Holiday sales are extremely important to profits for retailers, however the forecast for 2009 isn’t very reassuring.
Economists say that a significant part of our economy (66% or more) is based on consumer spending.
For millions of unemployed and under-employed Americans, this will not be a very merry holiday season.
If consumers aren’t spending, retailers aren’t ordering, wholesalers are reluctant to fill warehouses and manufacturers cut back production.
The net result is jobs are lost at every step along the way.
When consumers are unemployed or are afraid they will be unemployed soon, many choose to slow down spending on non-essentials.
Which leads to less consumer spending and so on.
It’s a vicious cycle and the only way to begin prying its grip from the economy is to put more people to work.
That’s not going to happen quickly, but it must happen.
There probably aren’t too many families that haven’t been touched directly or indirectly by unemployment – if they haven’t lost their job, they know someone who has.
Ideology about free markets and less government in our lives rings hollow when you are out of work and the mortgage/rent is due.
It may sound like a broken record, but there aren’t many economic troubles that can’t be cured by full employment.
As we go into the holiday season, it is not enough to be thankful if we still have jobs. We must press at all levels to get job creation at the top of the national agenda.
Let’s get past the gnashing of teeth over the bailouts big bankers received and focus on creating an economic climate that puts resources behind creating meaningful and sustainable jobs.
