From the Consumer Equilibrium? department
Bloomberg.com reports that U.s. holiday sales increased on Black Friday, yet the average shopper spent less money on average. More people shopping or the rich running out of things to buy within a certain price point?
The article explains the latter as a result of there being a saturation of HD television sets in American homes already. (Hear that sound? That’s the sound of a Sony warehouse working on a bigger flatter TV that we don’t really need.)
I really doubt that the possession of an HD TV quells all other desires in consumers. I’m no economist, but I’d blame the drop in average spending totals on our collapsing dollar, rising health care costs and credit crisis.
(U.S. Holiday Sales Increase; Shoppers Spend Less)
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