How’s this for a headline? “Consumer spending rises in January, unlikely to last.” That was an actual headline from the Associated Press. You think they may be editorializing just a little?
Ah, but consumers are shopping at discount stores like Wal-Mart and Target, the experts are saying. I hear this everywhere: we’re shopping at Wal-Mart and we’re eating at McDonald’s. And? It’s true. Wal-Mart same store sales are up over five percent compared to a year ago.
Sure, shoppers are spending smarter, but they’re also shopping more. Despite the AP’s dire prediction that it won’t last, consumers are watching their dollars more closely and getting a bigger bang for their buck. I know that’s what I’m doing. My income is pretty much what it was last year but I’m a much wiser guardian of my money.
Unemployment is on the rise, which causes us to worry a bit more about losing our own jobs. But, it also makes us more determined not to lose them. Whereas a year ago we may have had a little more cavalier attitude toward our own employment, nowadays we tend to appreciate what we have a little more. I believe that makes us all better employees. Fear is an amazing motivator. It’s easy to slack off when you think you can find another job tomorrow.
Radio is no different from any other industry out there. We’ve endured several waves of layoffs. These downsizings tend to bring those of us left a little closer. It has also consolidated many of our duties. We have to spread the tasks of our fallen employees among who’s left.
I believe a true measure of how we’re doing as a country is what we’re doing with our discretionary income. In other words, after we’ve paid the bills, bought the gas and the clothes, what are we doing with what’s left over? Many are saving it, which is wise. Savings rates are at a 14-year high.
However, many of us are treating ourselves to a night out at the movies. After experiencing the hoards first-hand, I was not at all surprised to read that Regal Cinemas posted a 30 percent increase in revenue the fourth quarter of 2008. Some argue that we were seeking some sort of escapism from the daily doom and gloom coming out of our televisions. As expensive as a night out at the movies is, it’s hard to make that argument stick. What I believe is happening is we’re becoming smarter about our spending. After finding what we need at Target rather than what we want at Neiman-Marcus, we’re discovering we have a bit more jingle in our pockets. Instead of spending $100 on a couple of undersized chicken breasts dressed up with chopped scallions at our local tablecloth bistro, we’re sharing a large tub of overpriced popcorn and soft drink down at the local multiplex. Life ain’t so bad.
Phil Valentine is an author and syndicated radio talk show host with Westwood One. For more of his commentary and articles, visit philvalentine.com.
