What is all the fuss about Black Friday? Were they giving away things for free? In the video below this post, notice how people are literally choking each other to grab items from the bins at the stores.
Just recently, I read that the United States is on the verge of a “fiscal cliff”. Why is it then people are racking up their credit cards? Am I missing something here? Is that supposed to be a good thing for the economy?
Based on the information I’m getting, it appears that the politicians in Washington, DC are not willing to solve this crisis. They are not willing to put aside their self-interest to help the country move forward.
That would mean making some special interest groups mad. And they don’t want to hurt their chances of being re-elected next time around. Simply put, to them, it’s not about doing the right thing for the country. It’s about doing the right thing to please a few and to get re-elected.
During my travel to speak on change in the workplace, I consistently tell my audiences that they have to do more with less during these difficult times. I don’t mean in the workplace alone. We have to do more with less at home as well.
Our main problem in this country is over-consumption. When you consume more than you produce, you will always have a problem of lack to deal with.
To me, most people in this country are drinking the cool aid… Buy, buy, buy in order to help the economy bounce back.
What Is Black Friday Anyway?
Supposedly Black Friday is a great day for businesses. It’s their one day of the year to get out of the red in order to make a profit for the year. Close to 150 million people in this country will go out to shop on Black Friday.
Sadly, the majority of those people don’t have cash to buy their stuff. They are using their credit cards to buy. Then, they are ready to spend months or even years paying for high interest debts.
According to some so-called financial gurus, that’s a good thing for the economy. After all, everyone knows that the economy needs a boost.
Okay, let me see how is my math.
If people are buying and charging on their credit cards, doesn’t that mean consumer debt will keep skyrocketing? Is that a good thing for the economy? The answer is NO!
Okay, I know if people consume more, manufacturers will have to crank up their machines and create more products. That means more jobs will be available. Right? Well, the problem is, those things people are buying are primarily made in China.
Common sense tells me that we have to produce more and spend less during these tough times of disruptive change. Well, as the French author, Voltaire said, “Common sense is not so common.”
Made in China and consume in the USA is not a sound economic strategy.
Here’s what I propose:
Let’s call it Red Friday in the US and Black Friday in China. At the end of the day, China’s businesses are the ones that will get out of the red. Simply put, our Black Friday helps the Red Army.