Wednesday, October 21, 2009

Recession Over?

So I've been reading articles about how the recession is over, Christmas is going to be good for retailers (or at least not as sucky as last year), things are better, according to some "expert economists." Frankly, I think its a lot of bull, I suppose meant to make retailers (or someone at least) feel better.

I'd just like to know for whom is the recession over and things are better? No one I know. Almost every day I read an article about layoffs, increased unemployment, no jobs (and no benefits). I don't recall the last time I read something about someone hiring. If unemployment is increasing, how can people have money to buy things to make it a better Christmas?

Even people who have jobs are struggling. Most didn't get a raise last year and don't expect one this year. Same for Christmas bonus. But they are having high expenses (child care, food, gas, insurance). Everything goes up except our wages. So those that had a bit extra at the end of the month, don't anymore. Those that were already close to the edge have to dip into their savings to cover increased expenses. Those that don't have much savings, put more on credit cards and increase those payments. People who stopped using their credit cards, or cut down their usage and perhaps paid down their balance, don't want to put money back on the credit cards.

Christmas is coming up and spending will increase some, but I bet its going to be worse than last year. I know that I plan to spend less this year than last year, and I cut last year's spending too. But with no raises, we're tight on our bills and I don't want to put anymore on credit cards than I absolutely have to. I think that retailers (and economists) are fooling themselves if they think this holiday season will be better than last year.