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.
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My economics professor back in college told us that recessions end when things like refrigerators and washing machines start breaking down, and people start replacing them. Six months after they start breaking down you have a whole lot of people with new jobs in factories building these things and other people selling them.
My fridge bought the farm two months ago. Two of my co-workers have since lost their fridges too. Plus, the A/C in my truck went out, costing $800 to get it replaced.
I'm cutting back on Christmas, and would anyway since I'm fed up with the greedy retailers.
However, I'm doing my part when it comes to ending the recession. Not that I wanted to of course.
I feel lucky that we've had no major expenses lately (well, other than Stephane's dental work, but we found a dentist that takes payments). Here's knocking on wood that we continue to have no major expenses for a bit. We paid off the fridge last year and the rest of the new furniture we bought for the house gets paid off in Dec., so we can apply some extra money to pay off the airline tickets we just bought to visit family in France over Christmas.
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