I think like a blue collar worker. I think of Black Friday as a means to permanently create retail jobs. If people like me go out and spend over $750.00 today and tomorrow then that spending would create a job. Plus I would get some much need kitchen gadgets. What other ways does Black Friday positively impact our USeconomy?
Well, it certainly seems to encourage people to spend money. Unfortunately, a lot of times it is not money that they have to spend. I guess that doesn't initially effect the economy negatively though.
The way I see, it does not really have an impact on the economy that much, it only happens for a day and the whole rush is gone and eerything gets back to normal, it does not create employment that much.
But how much of that actually goes back into our economy? Almost all of the junk sold on black Friday is from other countries. The employees get paid at or near minimum wage (and there is definitely no extra hiring other than shipping companies for online orders) and a lot of times the margins aren't that great on the products.
The problem is that stores over hire for the holiday season and some people end up losing those jobs after Christmas is over. Black Friday is one of those days where people completely overspend because they think they are getting a great deal on everything they buy. Shop year round fir Christmas and you will have money left over when the holiday is done.
The more junk (assets with little or no value or depreciating value) people buy, the more $ they transfer into the hands of those who produce and sell the junk.
I am trying to understand how the spending on one day (as massive as it may be at times) can permanently create jobs. There is no doubt that consumer confidence drive the economy forward, but I cannot see how the one day shopping holiday that is Black Friday can create the type of push that is needed to create long-term jobs.
Consumerism as its finest. It essentially encourages people to spend money they don't have for things they don't really need. Best yet, is that since Christmas is coming up you'll still likely be doing more spending the weeks after. One thing I'd ask most people is how many of them essentially dedicated Black Friday towards buying gifts for primarily themselves? Heck, I know I bought a bunch of computer hardware.
I never really understood the Black Friday madness, though I know its good for those running retail operations. Some of the footage I see each year reminds me out of something from a zombie film. The 1978 film Dawn of the Dead, was a satire on the whole mass consumerism thing. So (shrug) its not for me because I rather invest in things that grow in value and I think crowds are obnoxious. That all said, in a consumer economy, I'm sure it helps with the economy. More people buying crapola, er, products means more activity.
Black Friday is good for the overall economy, but I'd say it hurts consumers in the long run. Year over year, companies are constantly expecting growth over the holiday season. When that growth doesn't come or slows from the previous year, then retailers might cut back a few jobs or slow their hiring. Plus, consumers put their purchases on credit cards or they spend more money than they have to spare, so they wind up suffering in the long-term. It's mostly a good thing when it comes to Black Friday/the holidays and our economy, though.