As You May Recall

I don't mean this so much as touting my own horn. I don't claim to be an expert but did take the time to consider several opinions I respect before claiming the kind of shift in the landscape we're going to see from the economic downturn some time back on the blog.

Well, here it is, but only in part. In this case I'm specifically referring to my mention of the number of closed stores that have already been popping up, with plenty more still to come.

NEW YORK - The fallout from the horrific holiday season for retailers has begun, with the operator of an online toy seller filing for bankruptcy protection and more stores are expected to do the same — meaning more empty storefronts and fewer brands on store shelves.

A rash of store closings, which some experts predict will be the most in 35 years, is likely to come across areas from electronics to apparel, shrinking the industry and leading to fewer niche players and suppliers.

Despite my cynical nature I do like to try and see the positive side of things. And to the extent these events lead to more and more people saving and budgeting their money more responsibly, some good will eventually come from this. And despite the hardships, the vast majority of Americans will get through fine, albeit many perhaps feeling a pinch.

But then something had to wake us up.

Our incredible economic success led to excess, as it often does. And it's the younger generations impacted by it that I have been concerned about most. With a new cell phone, computer, Wii or whatever simply there for the asking at Mom and Dad's expense, it was likely hard for some to appreciate the real value of things and how hard some people needed to work to sustain that type of mentality.

They are about to learn a valuable lesson that will make them more responsible adults for years beyond today's current economic mess.

The Great Depression and a war spawned the so-called Greatest Generation. Hopefully there will be no world war and economic conditions will not mirror the Great Depression. I doubt that will be the case.

But on the margins the overall long-term impact of today's events can be positive. We can at least take some solace in that.

Comments

[Rick]

I am almost certain the author of this story has their facts wrong.

The story say:

"Holiday sales fell from 2 percent to 4 percent compared to a year ago, according to SpendingPulse, a division of MasterCard Advisors. Excluding gas and car sales, they dropped between 5.5 percent and 8 percent from Nov. 1 through Dec. 24,"

when in fact the reverse is true. Holiday sales are down 5.5 - 8% when you include gas prices and only between 2 and 4 percent when you remove them.

That is a very very small decrease. Yes a decrease in sales is bad but not as bad as this story makes it out to be.

remember gas prices are down more then 40% over the last year and that is good for our economy not bad.

[jharp]

"That is a very very small decrease. Yes a decrease in sales is bad but not as bad as this story makes it out to be."

You are wrong, Rick. It is very bad. Catastrophic bad.

[epobirs]

I'm really fed up with this 'Greatest Generation' garbage. They fought WWII. Sure, against other members of their generation. It isn't like the Nazis and other Axis members were solely fielding soldiers over 40 years old to face our mainly 20-something forces.

More importantly, these are the people who went on after the war to produce the Worst Generation. And I say that as a tail-end member of that group.

[Peg C.]

The Great Depression and WWII created a generation with character. Our biggest problem right now is we have at least 2 if not 3 generations that have never been tested and have no character. You are not born with it; you develop it through being tested morally and every other way. Failure and sacrifice are also necessary for developing character - something today's liberals and most moderates refuse to comprehend and certainly want to deprive our children of learning. (There is no proof liberals believe in character but I know for a fact that conservatives do.)

We are a flaccid and self-satisfied society, yet we have no character and we are more empty and miserable than our parents and grandparents who suffered many hardships. Every generation needs to be tested and needs to pass those tests, or a civilization begins to die off. Whether we are beginning a sufficient amount of testing now is something only future generations will be able to determine.