UPDATED WITH CONSUMER STATISTICS ON DEC. 7, 2008
Black Friday is the most intense shopping day of the year. Though it may be full of greed and overconsumption, everyone hits the mall. Some stores open as early as 3am on the day after Thanksgiving. And, most can count on people sleeping outside the door before opening. But this year, with the economic crisis and all, will Black Friday fall flat?
I found myself as one of these shoppers. At 8am, I was already in my car and on the 8 East freeway towards east San Diego. My destination? Guitar Center. Lucky for me, Christmas came early as I grabbed a new Fender American Standard Strat. It’s white on black – but I replaced the pick guard with black. It plays beautifully. And man, is it nice to go shopping – especially when everything is 15% off. It would seem that I wasn't the only one racking in the great deals this weekend.
Based on the economic crisis, I assumed that consumers will halt spending – regardless of the deals offered by Black Friday. And it seems only rational. When the economy enters recession, spending slows. It is natural – less money in the bank means less money spent at the store. Yet, Black Friday, and the weekend that follows it, is not a normal shopping day. It is THE shopping day. But my optimism can only stretch so far.
Though, as I entered Guitar Center at 8:20am on Friday, my assumption lost ground. The store was packed head to toe with guitars. Less was I surprised by the quantity of guitars than by the number of people waiting at the register this early in the morning. Apparently 15% is enough of a discount to draw in the crowds. No wonder I had to park three blocks away.
After leaving the store and making it home past the mall traffic, I realized that this weekend was now an American tradition. Regardless of the economy, you can expect Americans to show up for the great holiday shop-a-thon.
As weekend spending totaled over $41 billion, it would seem that I was not the only winner. Statistics show that sales rose 1.9% on Friday and Saturday combined – surprising most. According to the 2008 National Retail Federation survey, over 172 million shoppers went shopping online or in stores during Black Friday. This is an astounding 25 million more people than last year. And, shoppers spent 7.2% more money on items – totaling an average of $372 this weekend.
The interesting note is that Wall Street didn’t do as hoped. Wal-Mart went down 1.4%, Target was down 3.9% and Best Buy lost 1.8%. But, overall, the DOW finished up 102 points (about 1.2%). What is key, though, is that over four trading sessions, it was up about 9%.
All in all, for consumers and the markets alike, it was a green day for our economy. Hopefully it will continue this good trend, but these hopes do rest in the clouds. As we now descend from the largest shopping day of the year, let us hope that Americans did not buy things that they couldn’t afford. Otherwise this crisis may just get worse.
Saturday, November 29, 2008
Wednesday, November 19, 2008
Car Troubles
The American auto industry has hit rock bottom. And today, three of the major Detroit auto makers appealed to the government for emergency assistance. The industry is nearing the edge of collapse. Executives from General Motors, Ford and Chrysler were turned down in their bid to receive $25 billion from the governments $700 billion economic bailout.
According to Senator Michael B. Enzi, a Republican from Wyoming. “We have little evidence that $25 billion will do anything to promote long-term success.” And after four hours of testimony, the outcome remained bleak for the industry – two of the three major auto makers has stated that they could run out of money by the end of the year.
This is a sad time for America. The auto industry is not just an industry, it is a part of our culture. Henry Ford and the American auto industry led the country during the Industrial Revolution. Cars were symbols of the American Dream and a job in the auto industry was often where the dream began for American immigrants. And now, as it is teeters on the edge of the cliff, one question remains: Will the government save this industry again?
The auto industry is one of the leading job providers in the country. And as we face a growing recession in 2008, it would seem that a collapse in Detroit could only worsen the fall. They auto leaders are stuck in the middle of their own recession and adding the current economic crisis broke the camels back. It is necessary that the industry survive - necessary for American culture and the American economy.
The industry hosts 105 automobile plants in twenty different states. And, including the 14,000 car dealers, the automakers employ several million American workers. For the government to refuse assistance to a major industry in this economic crisis is unacceptable. It is the government playing favorites – and that is not what the government should do. Why bailout one part of the economy and not help another sector that is equally important?
Further, it is political suicide that our politicians are refusing to assist the industry, its workers, and therefore their constituents. Yes reforms are necessary, and the future of the industry may seem bleak. But it is better to keep the industry alive than to let it collapse in the midst of our already-unstable economy.
Now, of course there are major issues in the auto industry. The unionization of workers has assisted the failure of these auto makers. Half of the $50 billion that the industry asked for early in November was to be directed to healthcare alone. When a union such as the United Auto Workers (UAW) forces the hand of a company too far, the industry cannot compete successfully in a global market. Remember, Japan produces more cars than America. And being that as it is, American automakers must create business strategies to compete within the global market.
Changes are necessary. We cannot ignore the current crisis – we must assist the auto industry or else face worse economic downturn.
According to Senator Michael B. Enzi, a Republican from Wyoming. “We have little evidence that $25 billion will do anything to promote long-term success.” And after four hours of testimony, the outcome remained bleak for the industry – two of the three major auto makers has stated that they could run out of money by the end of the year.
This is a sad time for America. The auto industry is not just an industry, it is a part of our culture. Henry Ford and the American auto industry led the country during the Industrial Revolution. Cars were symbols of the American Dream and a job in the auto industry was often where the dream began for American immigrants. And now, as it is teeters on the edge of the cliff, one question remains: Will the government save this industry again?
The auto industry is one of the leading job providers in the country. And as we face a growing recession in 2008, it would seem that a collapse in Detroit could only worsen the fall. They auto leaders are stuck in the middle of their own recession and adding the current economic crisis broke the camels back. It is necessary that the industry survive - necessary for American culture and the American economy.
The industry hosts 105 automobile plants in twenty different states. And, including the 14,000 car dealers, the automakers employ several million American workers. For the government to refuse assistance to a major industry in this economic crisis is unacceptable. It is the government playing favorites – and that is not what the government should do. Why bailout one part of the economy and not help another sector that is equally important?
Further, it is political suicide that our politicians are refusing to assist the industry, its workers, and therefore their constituents. Yes reforms are necessary, and the future of the industry may seem bleak. But it is better to keep the industry alive than to let it collapse in the midst of our already-unstable economy.
Now, of course there are major issues in the auto industry. The unionization of workers has assisted the failure of these auto makers. Half of the $50 billion that the industry asked for early in November was to be directed to healthcare alone. When a union such as the United Auto Workers (UAW) forces the hand of a company too far, the industry cannot compete successfully in a global market. Remember, Japan produces more cars than America. And being that as it is, American automakers must create business strategies to compete within the global market.
Changes are necessary. We cannot ignore the current crisis – we must assist the auto industry or else face worse economic downturn.
Sunday, November 16, 2008
Top of the League Baby!
The best team in football? You may disagree, but that just means you're wrong. Don't worry, tons of people are wrong. Anyways, Chelsea reclaims first in the Premiership after defeating last place West Brom. We picked up an awsome striker, Nicholas Anelka, during the trade period. He picks up two wonderful goals in the match.
Tuesday, November 11, 2008
City Attorney Jan Goldsmith
The best part of this election cycle, for San Diego at least, is the victory by Jan Goldsmith over Michael Aguirre for city attorney. Aguirre, the man who turned the position of city attorney into a grossly powerful treasure hunt, was ousted after only one term. Having unnecessarily attacked Mayor Jerry Sanders and leading city councilmen, as well as having caused havoc during the October 2007 fires, Aguirre turned his position into a political madhouse. No longer will San Diego have to deal with a city attorney who wastes money on probe after probe without producing any results.
Jan Goldsmith represents a change that San Diego has been waiting for. With only 56% of the votes counted, he was already leading 59% to 40% over the incumbent. Being new to office, Goldsmith sent out a memo to all members of the city attorneys office. He is starting off on a good foot – being straightforward about his plans for the office:
Finally, we have an attorney who knows how to run an office. The inner-circle of Aguirre will quickly be ousted for less-partisan lawyers. The former judge, Goldsmith, is the right man to help turn San Diego around.
Jan Goldsmith represents a change that San Diego has been waiting for. With only 56% of the votes counted, he was already leading 59% to 40% over the incumbent. Being new to office, Goldsmith sent out a memo to all members of the city attorneys office. He is starting off on a good foot – being straightforward about his plans for the office:
Over the coming months, there will be a transition period. I will be straight with you -- there will be changes and some staff will be let go. I understand the anxiety, but I promise and commit to building a stable and positive work environment.He has asked each staff member for a resume as well as:
a. A description of your work, which includes specific examples
b. A description of what you have accomplished while employed in the office
c. A highlight of cases or matter on which you are currently working
d. What you would like to do in the future, either in the office or elsewhere.
Finally, we have an attorney who knows how to run an office. The inner-circle of Aguirre will quickly be ousted for less-partisan lawyers. The former judge, Goldsmith, is the right man to help turn San Diego around.
Wednesday, November 5, 2008
President Barack Obama
Finally, this election season has come to an end. As has the Regime that America has been umbrella’d by over the past 20 years. Yes, a Regime. But not only does this historic election represent a change in leadership, it also marks a significant change in Washington. It is a day that will live in the memory of our nation, a day that will be celebrated in the hearts of millions.
Ever since George H. W. Bush stepped foot in the White House as Ronald Reagan’s Vice President, the name has failed to leave Americas lips. Formerly the head of the CIA, Bush entered the White House on January 20, 1981. He didn’t leave for 12 years. He was succeeded by “The Comeback Kid” Bill Clinton. Clinton served two terms as President and, before America could get the name “Bush” out of their mouth, George W. Bush – son of the former President – became the 43rd President of the United States. Now, finally, eight-more years later, America was almost stuck with another member of the Regime – Hilary. The idea that the White House has been dominated by two families for over 20 years is a rather frightening fact. But, today…today is different.
Alas, today is a great day in American history. President Barack Obama is the first African-American President of the United States. This is a turning point for the country – it signifies the true breaking from our racial prejudices of the past and a fresh look to the future of the nation.
It is important, though, that this day be a day where all Americans come together. The days of polar-politics must cease for the benefit of our nation. Hopefully, this is the change that Barack Obama can bring. If nothing else – maybe he can inspire the next generation of citizens to defend the liberties and freedoms awarded to us by the Constitution, to be the next leaders of this fine nation.
I heard a great quote this afternoon that I felt was inspired, though I don’t know who said it:
Ever since George H. W. Bush stepped foot in the White House as Ronald Reagan’s Vice President, the name has failed to leave Americas lips. Formerly the head of the CIA, Bush entered the White House on January 20, 1981. He didn’t leave for 12 years. He was succeeded by “The Comeback Kid” Bill Clinton. Clinton served two terms as President and, before America could get the name “Bush” out of their mouth, George W. Bush – son of the former President – became the 43rd President of the United States. Now, finally, eight-more years later, America was almost stuck with another member of the Regime – Hilary. The idea that the White House has been dominated by two families for over 20 years is a rather frightening fact. But, today…today is different.
Alas, today is a great day in American history. President Barack Obama is the first African-American President of the United States. This is a turning point for the country – it signifies the true breaking from our racial prejudices of the past and a fresh look to the future of the nation.
It is important, though, that this day be a day where all Americans come together. The days of polar-politics must cease for the benefit of our nation. Hopefully, this is the change that Barack Obama can bring. If nothing else – maybe he can inspire the next generation of citizens to defend the liberties and freedoms awarded to us by the Constitution, to be the next leaders of this fine nation.
I heard a great quote this afternoon that I felt was inspired, though I don’t know who said it:
“Rosa sat so Martin could walk, Martin walked so Obama could run, and Obama is running so our children can fly”
Tuesday, November 4, 2008
This Was Kinda Cool...
Hey, I was just online reading something, and my friend sent me this video...I thought it was pretty cool..
Saturday, November 1, 2008
Empty Promises?
“I’m asking you to believe. Not just in my ability to bring about real change in Washington…I’m asking you to believe in yours.” Barack Obama leads us to believe that the coming election is the most important political decision of our generation. He promises “Change We Can Depend On”, but it is not the change we need. Yes, both candidates promise much for the next term, and that fervor has spread through the American public. But as America faces economic collapse, two foreign wars and an ever-increasing national debt, there is little that one can hope our president will do in the next four years – regardless of who is elected.
After the $700 billion bailout, the economy has continued to run rampant. But, $700 billion is just part of the governments’ intervention into the economy – the purchase of AIG cost $85 billion, about $29 billion was pledged in the purchase of Bear Sterns by JP Morgan Chase, and the Congressional Budget Office says the bailout of Freddie Mac and Fannie Mae could cost up to $25 billion. So this begs the question: with almost a trillion dollars committed to the economic crisis, where does either candidate find room for the oh-so-generous tax breaks that they promise?
Yes, Senator McCain offers tax cuts, but not as many as Senator Obama does. The problem is that both plans to cut taxes raise the national debt. From Obama, a $1000 family “Making Work” tax credit is available to 95% of working families. Now of course this will bring votes, but will the votes be rewarded? There is an underlying paradox that his plan misses: the bailout is going to be paid for by taxpayers – the same tax payers that Obama and McCain want to give tax credits and tax breaks to. So, how do they plan to actually pay for the bailout?
Whoever takes leadership in January is also stuck with an over-extended military. The wars in Iraq and Afghanistan are quietly being won by American forces, and though the end is in sight, it is still a ways away. The war in Afghanistan costs the government about $2 billion a week for 30,000 troops. Further, if Senator Obama begins to remove troops from Iraq, it will require much attention. Thus, if the President is focused on fighting and/or ending our foreign engagements, less will be focused on the broad range of changes promised to come from Washington.
And, as we are on the topic of foreign affairs, where, among all of the major issues facing our next leader, does either candidate find time to have talks with foreign leaders in Israel, North Korea, and other foreign nations that McCain and Obama want to engage? As we near voting time, I fear I cannot believe a word that spits from either candidates mouth.
When we turn to domestic issues, it is also unlikely that Senator Obama will bring about the changes he promises with regard to healthcare. He wants “affordable, accessible health care for all Americans” but he forgets that it will cost billions. In fact, he believes that, when in full swing, the program will cost about $50-60 billion each year. And, on top of that, he wants to cut coverage costs by $2500 for each insured family. Though this may sound great on paper, the implementation of such a plan would cost more money that the country has at hand – unless we want to be more financially subservient to the Chinese banks that loan the government most of its money.
The main issues of this election are straight-forward: healthcare, war and the economy. Both candidates promise change to Americans but neither have the power to instate this change. Our next leader will not be “he who brings change”. Rather, our President will be swamped with rollover issues from the Bush Administration. It’s less of a question of qualification: Senators Obama and McCain may be equally qualified to lead. It is a question of timing. This election, the only change may be the political party of our President. Though many Americans have bought into the “change” promised by both candidates, few realize that these promises are likely to be empty.
After the $700 billion bailout, the economy has continued to run rampant. But, $700 billion is just part of the governments’ intervention into the economy – the purchase of AIG cost $85 billion, about $29 billion was pledged in the purchase of Bear Sterns by JP Morgan Chase, and the Congressional Budget Office says the bailout of Freddie Mac and Fannie Mae could cost up to $25 billion. So this begs the question: with almost a trillion dollars committed to the economic crisis, where does either candidate find room for the oh-so-generous tax breaks that they promise?
Yes, Senator McCain offers tax cuts, but not as many as Senator Obama does. The problem is that both plans to cut taxes raise the national debt. From Obama, a $1000 family “Making Work” tax credit is available to 95% of working families. Now of course this will bring votes, but will the votes be rewarded? There is an underlying paradox that his plan misses: the bailout is going to be paid for by taxpayers – the same tax payers that Obama and McCain want to give tax credits and tax breaks to. So, how do they plan to actually pay for the bailout?
Whoever takes leadership in January is also stuck with an over-extended military. The wars in Iraq and Afghanistan are quietly being won by American forces, and though the end is in sight, it is still a ways away. The war in Afghanistan costs the government about $2 billion a week for 30,000 troops. Further, if Senator Obama begins to remove troops from Iraq, it will require much attention. Thus, if the President is focused on fighting and/or ending our foreign engagements, less will be focused on the broad range of changes promised to come from Washington.
And, as we are on the topic of foreign affairs, where, among all of the major issues facing our next leader, does either candidate find time to have talks with foreign leaders in Israel, North Korea, and other foreign nations that McCain and Obama want to engage? As we near voting time, I fear I cannot believe a word that spits from either candidates mouth.
When we turn to domestic issues, it is also unlikely that Senator Obama will bring about the changes he promises with regard to healthcare. He wants “affordable, accessible health care for all Americans” but he forgets that it will cost billions. In fact, he believes that, when in full swing, the program will cost about $50-60 billion each year. And, on top of that, he wants to cut coverage costs by $2500 for each insured family. Though this may sound great on paper, the implementation of such a plan would cost more money that the country has at hand – unless we want to be more financially subservient to the Chinese banks that loan the government most of its money.
The main issues of this election are straight-forward: healthcare, war and the economy. Both candidates promise change to Americans but neither have the power to instate this change. Our next leader will not be “he who brings change”. Rather, our President will be swamped with rollover issues from the Bush Administration. It’s less of a question of qualification: Senators Obama and McCain may be equally qualified to lead. It is a question of timing. This election, the only change may be the political party of our President. Though many Americans have bought into the “change” promised by both candidates, few realize that these promises are likely to be empty.
Subscribe to:
Posts (Atom)
