"Bah Humbug" said the consumer

I haven't written in a while. I've got to apologize for that.

I normally do not post too many opinions of mine on here, it's mostly internal reflection, things I am working on, etc... but the economy is on the mind of most people in the world as the US and the rest of the world are in recession. Job losses and layoffs are in the news daily, as companies decide rather than riding out the recession with the people they have, they'll let some of them go. Unfortunately as a lot of people are observing, this is happening in all industries. This causes those unemployed to lose their homes, tighten their belts, and to just try and survive. That means less spending on nonessentials like cable or satellite TV (some of my friends are cutting those out right now), keeping only Internet and telephone (either cell or land line People are cutting back on utilities, buying generic brands at stores, hitting discount and dollar stores more. It's not just those out of work that are cutting. Part of me wonders if this is natural, consumers are not consuming... and neither are companies. Companies in the news are cutting costs, tightening their budgets, and doing everything to control spending. While that is good to maintain a profitable business, it tightens things down the supply chain, which in turn makes other companies have to do the same... and the people working at companies doing this take these lessons home, and begin tightening their belts and stop spending where they can.

Someone told me this is a vicious cycle. That if consumers aren't confident they will have a job, that if their wages are frozen, that if they see cost cutting everywhere... that they will not spend and will cut those services they can do without. Less eating out, less laundry being done, less optional utilities, no cable or satellite TV, etc. We've already begun modifying our driving. Gasoline usage is DOWN. I paid $1.33 for gas in town yesterday. $1.33! Yet I still drive less, plan my trips, and do the same things I did when I had to pa $4.00 a gallon. Why? I got used to it. The same with cost cutting. If people see it being done by businesses, then they will do it themselves and businesses will have less revenue as people cut back.

They say that consumers need to keep spending to dig us out of this hole... Consumers can't be the only ones. I think we as consumers watch and follow businesses, and businesses need to keep spending, and to invest in growing and innovating just as a consumer needs to spend and plan for the future and the economy will recover. Consumers, people, they have no choice but to ride out a recession, and companies should try and do the same. Things are going to get better, but business has to do it's part to inspire the consumers to be confident. Consumers are employees somewhere, and just as one person touches the lives of many others... Businesses interact with one another in a similar manner. For the economy to be healthy, businesses, employees, and consumers all need to be confident.

That's just my opinion.

You know what, I worry. When I go to Target the day after Christmas, and the store is basically empty. Kohl's was the same. 80 to 90% off sales, and nobody is shopping. But I have hope, today, Academy Sports was packed with shoppers. Not people returning things, but actually shopping. We've gotta be brave and live, but so do those companies which employ people, and which provide services. They have to be brave, they have to live, because it's all related.

Again, just my opinion.

Have a happy New Year.