
REcent reports show that some stores are enjoying stronger sales than last year, but there seems to be a pretty big gap in stores that sell luxury items compared to lower end stores this holiday season. Lower income, less educated Americans are still facing high unemployment and are still feeling glooomy about the recession and economy. They are spending less. Upper income, well educated people are feeling more secure about their jobs and don't plan to cut back on speeding this Christmas. Stores like Walmart are not reporting big gains while sores like Saks Fifth Avenue are doing well. Their customers are spending more freely because they feel secure in their jobs and in the stock market. Luxury stores are not even needing to offer many sales to attract customers. Internet sales and shopping center sales are also up this year, but the divide between upper and lower income shoppers is growing, and that is not good for the economic recovery of the entire country.
Over the past years there has been a increase in the economy. This is good because soon people will feel better and start trusting the economy and spend more and that will only bring up the economy more! Consumer confidence will need to rise in all income groups, not just among the wealthy, if the U.S. is to pull out of the recession. I believe that extending the Bush tax cuts for all Americans was the right move by Congress because it will narrow the gap between all income groups. It will stimulate the economy as a whole. Members of the liberal media often try to encourage "class warfare" by reporting on the benefits of "taxing the rich." The mainstream media often has its own agenda, and citizens have to be very media savvy in order to make up their own ideas on this issue. I believe that keeping taxes as low as possible for every income level will help our economy the most. More jobs will be created, and more people in the lower and middle classes will increase their spending. The gap between richer and poorer consumers will narrow, and retail stores in all markets will see bigger profits at Christmas.
