Don’t Be So Naive About Black Friday This Year

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.

9 Comments

  1. Jolly Osagie

    Something that need to talk about very well from what I saw in the video

    Reply
  2. Bobby

    Great article! Not only is the money not being circulated back into the economy, you still have the federal reserve printing out dollars everyday slowly devaluating the US currency – making the dollar weaker. You have liberals thinking it’s a good idea to force businesses to pay higher wages (which, I would like to see them do on their own) which causes mass layoffs because companies simply cannot afford the labor anymore and if they do decide to then they have to raise the price of everything and then that ripples through the economy making people who did earn more earn less because the cost of living went up.

    The best thing the government could do is to make it easier for businesses to thrive in the US – especially small businesses, then companies would come back to the US and more jobs would be created and more people would have more money and then the spending would stimulate the economy. You hit the nail right on the head when you said that money was leaving to China and other countries.

    Look at graphic designers. They used to be so many available jobs for graphic designers in the US paying great wages – close to $35 per hour. Now these companies have all outsourced their graphic design to places like the Philippines and Malaysia and India. I would know. I am in the outsourcing industry.

    I guess that now we have become a global economy, it isn’t enough to just compete locally. You have to compete globally and you are competing for the jobs globally as well. I hate to see America become like Russia and lose it’s wealth, but I guess now it is every man for himself.

    Great Article!

    Reply
    • Rene Godefroy

      Well said Bobby. Small businesses are the backbone of the economy. And yes, we have to think globally. The competition is no longer the guy next door.

      Reply
  3. jean claude c.

    It seems like people really do not make any difference between occasion (finding a good deal), and temptation. No difference for them between what they want, and what they need!
    Maybe it is a way for them to deal with the everyday stress.

    Reply
    • Rene Godefroy

      Yes, the key point here the difference between what they want and what they need. Most people will buy something just because it is on sale. I visited a friend’s home and he showed me a walking closet full of new clothes that he never wears. It’s almost like addiction.

      Reply
  4. Kevin Hall

    Good insight and I agree with Vernon. I remember reading about the Roman Empire and they kept the masses in line by providing bread and circuses. So, if our Gov’t will feed us and entertain us they can control us.

    Reply
    • Rene Godefroy

      Yes, Veron is right. That is the exact strategy Papa Doc used to rule Haiti with an iron fist. I grew under that kind of manipulation. That is called mass control. We used to have carnival once a year. He changed it for twice a year. He would often drive by and throw money on the street to the masses. We would should “Duvalier for life!”

      Reply
  5. Vernon Jeter

    Sad!! Sad!!! Sad!!! US is a nation of wanting to be entertained!! We need to be thankful for what we have and wake up and send the leaders a message. FIX THIS MESS!!

    Reply
    • Rene Godefroy

      Most likely most of the leaders will not get the strong message because of political expediency. They are afraid of doing the right thing for the fear that their constituents won’t vote for them in the upcoming elections. Let’s wait and see. Send the message anyway.

      Reply

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