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Lantern Bearer | People are redeeming gift cards for groceries in stead of hard goods - Is that a good sign? |
>>>Wal-Mart says its shoppers are redeeming their holiday gift cards for basic items — pasta sauce, diapers, laundry detergent — instead of iPods or DVDs.<<<<
MSNBC online |
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ceruleanbill
 |
Since my degree is in economics, I can give the classic economist's answer: It Depends.
If people normally redeem gift cards for non-essentials, and now they're redeeming them for essentials, then no, its not a good sign. It suggests that their liquidity -- the cash they have available -- is dropping, or that the expenses they have to meet with that cash are rising.
If, on the other hand, they're simply saying that they want to conserve their money, and not use it for trivial things, then its a good sign.
My gut feeling is, it's the first one. |
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mikeeyman
 |
It depends how you see it.
I view it as a good sign because people are being wiser with their money. They are using their gift cards to buy things they need anyway... In essence, bringing down their household expenditures, instead of blowing it on luxury items that you don't need...
But others would view it as bad because they are being forced to use gift cards on household expenditures instead of luxury items. |
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Gem
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A good sign of what?
That people are broke and having to use gifts to buy staples?
It's good if you are the kid that gets diapers I guess |
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Dezi G
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I agree with GEM. Every year, when family and friends ask what I would like, I tell them "gifts!" Because if I get money or gift cards, I'm going to buy groceries and pay bills. I want something that's mine! It is a sad state our economy is in right now. Has been that way for a long time. |
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CupCake
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Its certainly not a good sign. People look at gift cards as cash and would normally spend them on entertainment items - the fact that they are using them to stock up on essentials says alot about the state of our economy. |
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doc
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It is a good sign that the american dollar doesn't get you much
these days and that has a lot to do with the condition of our economy, which is in my opinion poor. We have heard that we are going into another recession, and I feel we have been in that recession for some time now, and it is becoming hard for out government to hide what is painfully obvious to the average joe trying to make a living. It's hard also to put all this blame on president Bush because now days the president is not much more than a spokesperson or puppet to the all and powerful Big Brother. |
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