Consumers and Holiday Spending

The highly anticipated day of thanks is here, stores have stocked their shelves, but there is a slight dilemma. The removal of limitations due to COVID-19 has caused an increase in spending. People have been advised to make early shopping trips as this holiday season 2 million more consumers than last year are expected to shop from Thanksgiving day through the weekend and into Cyber Monday. Christmas is also predicted to be a holiday of spending as according to the New-York-based Deloitte, holiday spending will be at an average of 1,463 dollars per household in the US. This increase in spending will likely follow into the new year boosting commerce. After this year’s Thanksgiving holiday, a shopping record has been set. Data from Adobe Analytics showed that consumers would set from 5.1 billion to 5.4 billion. With this precedent set, it’s also expected the national debt will rise, 2020’s national debt was 26.7 trillion dollars. Leading to overconsumption and a threat to economic stability. The excessive increase in spending is a telltale sign that the present inflation issue the nation faces will not improve. Consumer spending holds a place of importance in the economy, it flourishes on capitalism. That being said, the demand for supply (products) is driving the inflation crisis higher. According to the Bureau of Labor Statistics (BLS), every aspect of the US economy has been impacted by inflation. Only consumers and analytics will tell the state that the economy will be subjected to. As the system in which the nation runs is consumer-dependent.

Sources: 

https://thehill.com/opinion/finance/581423-americas-inflation-crisis-is-even-worse-than-you-think

https://www.supermarketnews.com/consumer-trends/us-holiday-retail-sales-outlook-brings-good-tidings

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