It seems every year, in the lead-up to Christmas, we hear about how “retailers are doing it tough” and that the Christmas period is crucial for retailers, so we, as consumers, had better “spend, spend, spend”.
This year was no different, except the “global financial crisis” had “hit retailers hard” and that, more than ever, we needed to spend, spend, spend. Never mind the fact that families might need the Rudd government’s handout for bills and savings – it was our duty to spend to save the economy.
Before the Christmas rush I commented to Ang (though I wish I had have blogged the prediction here) that by the time Christmas was over we’d hear that spending was up this year, if not to record levels. Why? Because I’ve noticed that this happens every year.
Last year it was the weight of growing interest rates denting consumers’ spending. This year, the economic crisis. I forget what it was the year before that.
I did entertain the thought that the financial “crisis” might, in fact, have an impact this year – but I posited that we’d still see a surge in spending all the same.
Well… the scare tactics appear to have worked.
According to the salesman at The Good Guys near my Mum’s home, large LCD TVs have been “walking out the door” (hardly an objective measure I know). And Gerry Harvey is surprised that sales had increased 8.7% over the same period last year.
Mr Rudd must be very pleased that his bonus is being spent so wisely…
Now, I am aware that retailers have experienced a significant decrease in spending over the past few months and that some, especially I suspect smaller operators, will actually be “doing it tough”.
I don’t know about you, but I just find the whole “it’s your duty to spend” line a little sickening and that the justifications for why we should are wearing a little thin when retailers continue to report record profits even after claiming that they’re “doing it tough”.
I’d like to see journalists, when reporting such statements, take a look at the profit figures across the previous year and put it all in a bit of perspective: “Despite the fact that David Jones posted a record profit last year, the best in it’s history, the retailer says its preparing for ‘tough times’.” (tough times = “net profit after tax … in line with previous guidance of five to 10% growth” – emphasis mine.)
I think it’s all very much a sign of our myopic focus on growth at all costs (hilariously captured by this YouTube video) as though the environment is just a never-ending source of resources and that permanent, endless growth is possible.
It’s quite simply not possible – the environment has limits that are already stretched by our current consumption habits. Sooner rather than later we’re going to have to face that fact.
Perhaps we should be looking for alternative models and starting to look at the economy from a different perspective? Models and perspectives that don’t rely on infinite, unsustainable growth fueled by private, debt-enabled spending – which, after all, got us into this mess in the first place.