Following a disappointing holiday shopping season, despite an added emphasis on sales and extended hours, economists project a protracted dip in retail spending going forward.
Though spending among high earners continues to be robust, leftist economic policies have effectively hamstrung the discretionary spending of those in the middle and lower classes. Comparing store visits during the 2013 season to those just six years prior, shoppers are visiting only about 60 percent as many retailers.
In order to attract sufficient clientele, stores have resorted to offering deeply discounted products at a serious cost to their own bottom line.
Scott Tuhy of Moody’s Investors Service opined that “profits are likely to be flat because retailers had to provide quite a lot of discounts to get those sales.”
While some attribute the dip in retailer spending to a shift toward online purchases, the precipitous decline strikes some experts as evidence of an overall change in priorities.
Economist Stuart Hoffman of PNC Financial Services Group compared the response to that following the Great Depression.
“There’s been psychological scarring for people from this recession,” he said, “much like how some people who lived through the Depression said they were scarred. There are still a lot of people who can’t afford to do much, and those who can are holding back.”
With at least 11 million Americans unable to find work and those currently employed forced to spend even more on health insurance and other Obama mandates, it is clear this trend will not be reversing any time soon. Reports indicate that, after adjusting for inflation, wages are virtually the same as they were at Obama’s inauguration.
Leftism remains a very real danger to America’s future in a number of respects; however, the most pronounced damage such policies inflict is found in the staggering loss of wealth they inevitably foster.
–B. Christopher Agee
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